Government Will Intervene If Startups Won’t Improve Governance Guardrails: Amitabh Kant

Indian startups need to adopt a self-regulating ecosystem to bring transparency and ethical behaviour in business, said former CEO of NITI Aayog Amitabh Kant at the Startup Mahakumbh.

Kant was indicating the challenges around regulations and financial management being faced by leading startups such as BYJU’S and Paytm.

“In my experience, I have witnessed startups flourishing, while others like BYJUs, GoMechanic, Housing.com and Trell faced challenges. There must be good corporate governance in place. All of you entrepreneurs are innovators. As you grow and expand, you must ensure that there is proper financial management and a proper audit. Self-regulation is the key,” he said.

The three-day Startup Mahakumbh, supported by Invest India, MeitY Startup Hub (MSH) and Startup India, kicked off on Monday (March 18) in Delhi. 

Kant further said that if startups don’t regulate themselves, the government will step in. 

To foster a thriving and innovative startup culture in India, he emphasised the need “to minimise government intervention and regulatory control”, as excessive regulation could hamper innovation.

He added that as India rises as a global economic force, startups should set benchmarks in corporate governance and financial management. “Adopting best practices will bolster credibility with stakeholders, attract investors, and pave the path for sustainable growth—a narrative essential for India’s success.” 

Kant noted that while Indian startups have recorded a 20x jump in funding, almost 12x growth in the number of investors and an 8x increase in the number of incubators, there is a need to focus on exits for venture capital investors. 

‘Startup Mahakumbh’, is a first-of-its-kind event, to bring together startups, investors, incubators, accelerators and industry leaders from several sectors under one roof.

The event will cover AI+SaaS, D2C/ consumer brands, agritech, fintech and many more sectors. Notably, it will host a dedicated pavilion for the B2B manufacturing sector for the first time in India, offering a unique platform for startups in this space to shine. 

Overall, Startup Mahakumbh is anticipated to host over 1,000 startups, featuring 10 thematic tracks, attracting over 1,000 investors, 500 incubators and accelerators, 5,000 conference delegates, 10 country delegations, and 40,000 business visitors during the three-day event.