“The US invested $2.34 trillion in ventures and startups between 2014-2024. China invested $835 billion. India, in comparison, has only invested about $150 billion. What we lack today in this country is money,” Pai said, adding that family offices and the government need to fill this gap.
Pai, also a co-founder of Infosys, was speaking in Bengaluru at the TiE Global Summit on the state of venture capital in India. Emphasising the need for changes in regulations, he said, “LIC has a balance sheet of about ₹60 lakh crores, and the entire life insurance industry has ₹80 lakh crores, yet they’ve invested almost zero in startups. The same goes for our pension funds with ₹30-35 lakh crores. This is tragic,” further adding that these sectors lose a lot of money in buying bonds.
Pointing out the large allocation for subsidies but the failure to create a wider pool of funds for startups, Pai said the government, including states, spends ₹8 lakh crore a year on subsidies. “Why can’t they put ₹10,000-20,000 crore into innovation, helping young entrepreneurs create jobs? ” he questioned, adding that there’s no shortage of money in this country. “It’s not about a lack of money-it’s about a lack of application of mind,” Pai emphasized.
Despite his criticism, the VC had a positive outlook on India’s growth and said that by 2030, India will have over 500,000 billionaires.
