Union Minister Piyush Goyal has expressed deep concern over the trend of Indian startups selling their innovative ideas and intellectual property to foreign companies for relatively modest sums, often between ₹25 lakh to ₹50 lakh. This issue highlights a broader challenge facing India's startup ecosystem: the struggle to retain innovation and build long-term value within the country.
Goyal's remarks were made during the Startup Mahakumbh 2025, where he emphasised the need for Indian startups to focus on building transformational technologies rather than transactional businesses. He criticized the tendency of Indian startups to prioritize quick exits over long-term growth, which often results in foreign companies acquiring promising ideas at low valuations.
Loss of Intellectual Property (IP): When Indian startups sell their IP to foreign firms, they risk losing control over their innovations. This not only deprives India of potential economic benefits but also hampers its ability to become a leader in emerging technologies.
Lack of Long-Term Value Creation: Quick exits often mean that startups do not reach their full potential within India. This can lead to a brain drain, as talented individuals may seek opportunities abroad where their innovations can scale globally.
Dependence on Foreign Capital: The reliance on foreign investment and acquisitions can make Indian startups vulnerable to external market fluctuations and strategic decisions made by foreign companies.
Goyal urges Indian startups to focus on deep-tech innovations, such as AI, EVs, and semiconductors, which can contribute significantly to nation-building and global competitiveness. He emphasizes the importance of protecting intellectual property and building sustainable businesses that can scale globally without sacrificing control to foreign entities.