At the News18 Rising Bharat Summit held at Bharat Mandapam in New Delhi on April 8-9, industry stalwarts Amitabh Kant, Suhel Seth and Prasoon Joshi convened to deliberate on India’s burgeoning soft power and the pivotal role of its youth in propelling the “Make in India” initiative.
India’s G20 Sherpa & Former CEO of NITI Aayog, Amitabh Kant, put a spotlight on the work that India has done compared to other countries, especially in the digital payment sector.
Kant highlighted, “Ten years ago, India was counted among the fragile five economies. Today, we’ve risen to become one of the top five. Over the past decade, we’ve made remarkable strides in infrastructure development and have driven significant innovation. India now leads the world in fast payments, accounting for 50 per cent of global transactions — while China follows with only 20 per cent.”
Underscoring the uniqueness of India’s digital payment landscape, Kant noted, “We are the only country where PhonePe competes with Google Pay.”
Suhel Seth, founder and managing partner of Counselage India, stated the need for societal evolution, saying, “Every society needs to do a lot more.”
He lauded India’s dignified ascent on the global stage, asserting, “I think we are in the finest position of a global superpower which has behaved with dignity.” Seth’s insights point to India’s balanced approach in enhancing its global influence while maintaining cultural integrity.
“India is a force to reckon with,” he added. Seth also cited the sheer advancement of innovation in the country of Israel comparing it to its small size equivalent to most big cities in India.
Challenges with start-ups amid the “Make in India” initiative
Launched in 2014, the “Make in India” initiative aims to transform India into a global manufacturing hub by encouraging both multinational and domestic companies to produce their products within the country.
This programme has significantly boosted Foreign Direct Investment (FDI) inflows, facilitated by the simplification of FDI rules and improvements in the ease of doing business. Consequently, India now ranks among the top 100 nations in the Ease of Doing Business index.
“A few years ago, there were only 156 start-ups in India, today we have 1,61,000 start-ups and more than 100 unicorns,” Kant added.
The initiative has also led to substantial employment generation, with approximately 8 lakh individuals gaining jobs, marking a significant stride towards achieving the objectives of the Production Linked Incentive (PLI) Scheme.
Despite these advancements, India’s startup ecosystem faces challenges, particularly concerning regulatory frameworks. Critics argue that while the government has launched initiatives like “Startup India” to promote entrepreneurship, there are gaps in policy implementation and support structures.
Issues such as complex compliance procedures and inadequate infrastructure have been highlighted as impediments to startup growth.
India’s startup landscape, while vibrant and rapidly expanding, faces several significant challenges that hinder its sustainable growth.
Addressing the inherent challenges in the startup ecosystem, Kant remarked, “Startups have to fail. Startups are about failure, but one success will be worth all these failures.” His statement reflects the high-risk, high-reward nature of entrepreneurial ventures and the importance of resilience among young entrepreneurs.
Kant described the work of Indian start-ups in the field of Artificial Intelligence and health domains as “path-breaking.”
Navigating India’s complex regulatory environment remains a formidable task for startups. The myriad compliance requirements, encompassing labour laws, tax regulations and sector-specific guidelines, can be overwhelming, especially for early-stage ventures with limited resources.
Despite governmental efforts to streamline processes, many startups still grapple with bureaucratic red tape and unpredictable regulatory changes. For instance, the Reserve Bank of India’s
sudden restrictions on Paytm Payments Bank due to compliance issues led to significant drop in its parent company’s stock value.
Recent controversies have spotlighted lapses in corporate governance within the startup ecosystem. High-profile cases, such as the
financial mismanagement issues faced by Byju’s, once valued at $22 billion, have raised alarms among investors and stakeholders.
The company’s entanglement in legal battles over substantial loans and unaccounted funds has highlighted the critical need for robust governance frameworks. In response, venture capitalists are intensifying their scrutiny of governance practices before committing funds, leading to more stringent due diligence processes.
The global economic slowdown and rising interest rates have tightened venture capital inflows into Indian startups. This funding crunch has compelled many startups to implement layoffs, reduce operational expenses, and, in some cases, cease operations entirely.
Early-stage startups, in particular, find it challenging to secure the necessary capital to scale their operations, hindering their growth prospects.
The Indian government has expressed concerns regarding the nature of innovations emerging from the startup sector. Commerce Minister Piyush Goyal recently
criticised startups for focusing on services like rapid delivery, which cater predominantly to affluent consumers, and urged entrepreneurs to emulate China’s advancements in high-end technology sectors such as electric mobility and robotics.
This critique has sparked a debate on the direction of innovation,
with some founders arguing that the current ecosystem lacks adequate support for deep-tech ventures.
Beyond regulatory and financial challenges, startups also contend with infrastructural deficiencies and a shortage of skilled talent. The concentration of startup hubs in metropolitan areas leaves tier-2 and tier-3 cities with inadequate infrastructure, mentorship, and networking opportunities.
Additionally, there exists a skill gap, particularly in emerging technologies, which hampers the ability of startups to innovate and compete on a global scale.
India’s soft power on the global stage
India’s rich cultural heritage, democratic values, and diplomatic endeavors have significantly contributed to its soft power. The Indian Council for Cultural Relations (ICCR), established in 1950, has been instrumental in promoting cultural diplomacy.
Additionally, India’s emphasis on peaceful advancement and friendly policies towards neighbouring countries has bolstered its legitimacy in South Asia.
Prasoon Joshi, CEO of McCann Worldgroup India, who was also part of the panel, highlighted the significance of India’s cultural exports as instruments of soft power and reflected upon Indian civilisation, which, he said, is “rooted in a larger truth”.
#RisingBharatSummit2025 | What is India’s most underrated soft power today?
“The fact that we are a collective civilisation, not individualistic,” says Poet, Thinker, Chairman & CEO of McCann Worldgroup India @prasoonjoshi_
“It was Jambavanta who played biggest role in Lord… pic.twitter.com/1d1MWqxhFn
— News18 (@CNNnews18) April 8, 2025
He recited lyrics from the song “Roobaroo” from the film Rang De Basanti, symbolising the awakening and potential of India’s youth in shaping the nation’s global narrative.
“Ye Bharat Ka Uday Hai”, Lyricist @prasoonjoshi_ pens a special poem for #RisingBharatSummit2025#Bharat #India #RisingBharat #PrasoonJohi pic.twitter.com/YHXHMQYxkP
— News18 (@CNNnews18) April 8, 2025
The global popularity of Indian cultural exports, such as yoga, Ayurveda, and Bollywood, further exemplifies the country’s soft power. These cultural elements have not only enhanced India’s global image but also fostered international cooperation and understanding.
