Most Indian Start-ups Are Imitations Of Western Business Models: Suhel Seth

Seth argued that the Indian startup ecosystem is dominated by businesses that replicate ideas already proven abroad, rather than developing original solutions tailored for India

Seth said that very few Indian startups meet these criteria, with most focusing on copying existing models rather than pioneering new ones

Source : freepik

Most Indian startups are merely imitating Western business models and lack genuine innovation, Counselage India Managing Partner Suhel Seth said on Thursday.

Seth argued that the Indian startup ecosystem is dominated by businesses that replicate ideas already proven abroad, rather than developing original solutions tailored for India.

"When I look around on the start-up ecosystem in India, I find almost all of that replica. And all of that is a copy of what has already been done in the West. A guy wants to start a vada-paw shop, he calls himself a startup," Seth said at the CII Annual Business Summit 2025.

He also suggested criteria to define a true startup like it must represent a technological leap, be genuinely unique and non-replicable, and inspire pride among its creators.

Seth said that very few Indian startups meet these criteria, with most focusing on copying existing models rather than pioneering new ones.

He pointed out that the startup conversation in India is overly fixated on valuations, unicorn status, and founder wealth.

"The start-up universe is discussed only monetarily. It is not discussed in terms of how you've changed lives. Currently, any discussion around startups is only in three areas. Have they become a unicorn? How much has the founder made? When will I (the investor) exit? "This is the only business domain I have seen where people enter with a view to exit. So, people don't treat those businesses seriously," Seth noted.

He questioned why India, despite its vast talent pool and growing digital infrastructure, has not produced global tech giants comparable to Facebook or Google.

Seth attributed this gap to social pressures, risk aversion, and a lack of supportive ecosystems that encourage innovation and long-term commitment.

Further, Seth floated the idea of a single emergency healthcare number for the entire country.

He urged entrepreneurs and investors to shift their focus from short-term financial gains to building startups that are meaningful, sustainable, and visible in their impact on Indian society.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)