{"id":77751,"date":"2026-06-25T17:01:31","date_gmt":"2026-06-25T11:31:31","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=77751"},"modified":"2026-06-25T18:44:47","modified_gmt":"2026-06-25T13:14:47","slug":"startups-to-scaleups-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/25-06-2026\/startups-to-scaleups-india","title":{"rendered":"From Start-ups to Scale-ups: Why India Needs Global Corporate Champions?"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recently Indian companies like Reliance Industries Ltd. (RIL) and Amul achieved distinct milestones, but <strong>not enough to be globally dominant,<\/strong> innovation-driven, and embedded in the highest-margin segments of the global economy.\n<ul class=\"wp-block-list\">\n<li>RIL had become the first Indian company to cross $10 billion in profits.<\/li>\n\n\n\n<li>Amul had become India\u2019s first FMCG firm to hit a turnover of Rs 1 trillion.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Start-ups in India: Key Features<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>According to the <strong>Department for Promotion of Industry and Internal Trade (DPIIT)<\/strong>, over <strong>1.6 lakh start-ups<\/strong> have been recognised under the <strong>Startup India initiative<\/strong>.<\/li>\n\n\n\n<li>India is the <strong>third-largest start-up ecosystem globally<\/strong>, after the US and China.<\/li>\n\n\n\n<li>India has produced more than <strong>100 unicorns<\/strong> (start-ups valued at over $1 billion).<\/li>\n\n\n\n<li>Fintech, edtech, e-commerce, SaaS, health-tech and deep-tech sectors have seen rapid growth recently.&nbsp;<\/li>\n\n\n\n<li>India lags in producing globally dominant firms, while it has succeeded in creating numerous start-ups.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Comparison: India vs. Other Economies<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>While India has fallen behind in making dominant global companies, it has excelled in generating many start-ups.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Parameter<\/strong><\/td><td><strong>India<\/strong><\/td><td><strong>USA<\/strong><\/td><td><strong>China<\/strong><\/td><td><strong>South Korea<\/strong><\/td><\/tr><tr><td>Global Corporate Giants<\/td><td>Few<\/td><td>Numerous (Apple, Microsoft, NVIDIA)<\/td><td>Alibaba, Tencent, BYD<\/td><td>Samsung, SK Hynix<\/td><\/tr><tr><td>R&amp;D Spending (% of GDP)<\/td><td>Less than 1%<\/td><td>~3.5%<\/td><td>~2.5%<\/td><td>~5%<\/td><\/tr><tr><td>High-margin Tech Firms<\/td><td>Limited<\/td><td>Extensive<\/td><td>Growing rapidly<\/td><td>Strong<\/td><\/tr><tr><td>Global Brands<\/td><td>Few<\/td><td>Strong global presence<\/td><td>Expanding<\/td><td>Established<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Unlike the United States and China, Indian firms are dependent on the domestic market. There is low capture of global value through brands, patents, and IP.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues with Indian Start-ups<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Problem of Plenty:<\/strong> India has lots of start-ups. But only a few make it to the list of globally competitive firms. There is an excess in terms of number but not scale.<\/li>\n\n\n\n<li><strong>Orientation towards Domestic Market:<\/strong> There is little market share and pricing power internationally since most firms focus on India\u2019s huge consumer base.<\/li>\n\n\n\n<li><strong>Absence of firms in high-margin areas:<\/strong> India has very few players in frontier technologies like semiconductors, Artificial Intelligence, manufacturing, and biotech.\n<ul class=\"wp-block-list\">\n<li>Even today, global profits keep accruing to firms located elsewhere.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Low R&amp;D spending:<\/strong> India spends less than 1 percent of its GDP on R&amp;D, much less than other leading economies, hindering innovation.<\/li>\n\n\n\n<li><strong>Lack of Patient Capital: <\/strong>Deep-tech and research-based ventures require long-term capital. Venture capital in India is more focused on quick returns than on innovations.<\/li>\n\n\n\n<li><strong>Regulatory and structural issues:<\/strong> The compliance framework\u2019s complexity, factor market fragmentation, inflexibilities in land and labour, and regulatory uncertainty across states add to the costs of scaling businesses.<\/li>\n\n\n\n<li><strong>Lack of integration into Global Value Chains:<\/strong> While India takes part in Global Value Chains, it is mainly by exporting services and assembling. India does not own the technology, design, and brands.<\/li>\n\n\n\n<li><strong>Social and policy perception of profits:<\/strong> The Economic Survey of 2017-18 noted India\u2019s movement from &#8220;crony socialism to stigmatised capitalism&#8221;. It implies that making profits is stigmatised in India.\n<ul class=\"wp-block-list\">\n<li>Such perception could be detrimental to investment sentiments and reforms.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why does India need Scale-ups and not Start-ups?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Productivity:<\/strong> Big firms spread the fixed costs of R&amp;D, technology, and compliance on a higher volume which reduces the unit costs.<\/li>\n\n\n\n<li><strong>Innovation:<\/strong> Breakthrough innovation requires patient capital, manpower, risk-taking, and heavy R&amp;D.\n<ul class=\"wp-block-list\">\n<li>Large firms have all these capabilities.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Global Competitiveness:<\/strong> The global giants have strong brands, IP, cross-border supply chain network, and pricing power.\n<ul class=\"wp-block-list\">\n<li>All these capabilities help countries capture more value in global transactions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Job Creation:<\/strong> Firms with high revenue create direct jobs along with creating supplier eco-systems, logistics infrastructure, and associated industries.<\/li>\n\n\n\n<li><strong>Fiscal Impact: <\/strong>Highly profitable companies contribute a lot of money through taxes. It helps strengthen the financial strength of the government for social expenditures.<\/li>\n\n\n\n<li><strong>Strategic &amp; Technological Sovereignty:<\/strong> In a time of technology race between countries, countries require domestic players in important domains like semiconductors, AI, green energy, and defence manufacturing.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#fff2cc\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>Related Government Initiatives<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Startup India (2016)<\/strong>: Tax incentives, self-certification, Fund of Funds.<\/li>\n\n\n\n<li><strong>Digital India<\/strong>: Strengthened digital infrastructure and market access.<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme<\/strong>: Encourages domestic manufacturing.<\/li>\n\n\n\n<li><strong>Atal Innovation Mission (AIM)<\/strong>: Promotes innovation and entrepreneurship.<\/li>\n\n\n\n<li><strong>National Deep Tech Startup Policy (under consideration)<\/strong>: Focus on frontier technologies.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Forward: Developing Global Giants of India<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Increased R&amp;D Spending:<\/strong> Increase public and private R&amp;D spending to at least 2 percent of GDP.<\/li>\n\n\n\n<li><strong>Deep-tech Eco-system: <\/strong>Give long-term finance to AI, semiconductor, biotech, and advanced manufacturing ventures.<\/li>\n\n\n\n<li><strong>Strong Intellectual Property System:<\/strong> Promote patent creation, monetisation, and technology transfer.<\/li>\n\n\n\n<li><strong>Make it Easy to Scale Up: <\/strong>Reduce regulations and standardise policies of different states to reduce compliance costs.<\/li>\n\n\n\n<li><strong>Deep Integration into Global Value Chains:<\/strong> From assembly to design, branding and technology control.<\/li>\n\n\n\n<li><strong>Create a Positive Perception About Enterprises:<\/strong> The profits made due to competition and innovation should be seen as an essential requirement for growth, jobs, and national development.<\/li>\n\n\n\n<li><strong>Help in Global Expansion:<\/strong> Diplomacy, trade and financial policies of the government should enable Indian firms to gain global market share.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India has succeeded in developing a dynamic start-up ecosystem. The next phase of development, however, requires globally competitive firms with profit pools, strong brands, and technological supremacy.<\/li>\n\n\n\n<li>India needs to go beyond the success of unicorns and develop corporate champions which are comparable to Samsung, Apple, or NVIDIA to achieve the goal of Viksit Bharat 2047.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q] <\/strong>Examine the structural challenges hindering the emergence of global corporate champions in India. Discuss why India needs such firms for achieving sustained economic growth and becoming a developed economy.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/india-doesnt-just-need-start-ups-but-scale-ups-that-become-global-giants-10754280\/\" target=\"_blank\" rel=\"noopener\">Source: IE<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2026\/06\/Daily-Editorial-Analysis-25-06-2026.pdf\"><strong>Download PDF<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 25 June, 2026<\/p>\n<p>Recently Indian companies like Reliance Industries Ltd. (RIL) and Amul achieved distinct milestones, but not enough to be globally dominant, innovation-driven, and embedded in the highest-margin segments of the global economy.<\/p>\n","protected":false},"author":15,"featured_media":77753,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-77751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/06\/from-start-ups-to-scale-ups.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/77751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=77751"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/77751\/revisions"}],"predecessor-version":[{"id":77791,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/77751\/revisions\/77791"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/77753"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=77751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=77751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=77751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}