“We should not be overly dependent on foreign venture capital”: Piyush Goyal says funds like pension & insurance can invest in startups

Commerce and Industry Minister Piyush Goyal has urged Indian startups to depend more on local sources of money rather than foreign investors. 

Speaking at the ET Startup Awards 2025 in Bengaluru, he said India has enough domestic savings to support its own entrepreneurs and create stable funding for the long run.

India must use its own funds to build a strong startup base

During his address, Minister Piyush Goyal said, “I asked my team to look at the regulatory framework so that long-term domestic funds—like pension and insurance—can participate in venture investments. We should not be overly dependent on foreign venture capital.”

He further added, “India has the depth and savings to create its own pool of patient capital. The next decade will be about patient capital—investors who believe in India’s structural growth rather than chasing short-term returns.”

He said that India’s homegrown investors must play a bigger role in supporting startups across the country, not just in large cities. 

The minister added that encouraging local funding would help young entrepreneurs in smaller towns get access to more stable and long-term money.

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Domestic investment can make startups more stable and confident

Minister Goyal said the government aims to make the startup ecosystem less dependent on foreign capital and more focused on Indian savings. 

He also pointed out that India’s economic policies are designed to offer consistency and predictability. “We don’t make knee-jerk changes; we believe in stability and predictability,” he added.

According to the minister, greater use of local funds will help build a stronger link between national growth and the country’s innovation sector. He also said that India is close to finalising trade agreements with the European Union and the United States, which will open new markets for startups.

Minister Goyal’s message underlines the government’s vision of making India’s startup ecosystem self-reliant and future-ready by encouraging long-term local investments.

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