‘Have you done what the Chinese have done?’: Startup founder’s stinging question to govt

For Indian startups, the road from idea to execution is riddled with bottlenecks:broken portals, delayed certifications, and schemes that exist more in theory than in practice. It’s a reality founders quietly battle.

Kaushik Banerjee, co-founder and CEO of flutrr, took to LinkedIn to voice what many in the ecosystem have long felt: that the startup journey in India is made harder by outdated systems and hollow institutional promises.

“Getting a GST certificate in India takes weeks, if not months — even when the startup is willing to pay GST,” Banerjee wrote.

He didn’t stop there. “Your ROC site does not work half the time. Company formation is a huge headache,” he noted, adding that the CGTSME credit scheme “exists only on paper. Most banks refuse to lend under that scheme.”

His comments came in response to recent remarks by Commerce Minister Piyush Goyal, who praised China’s approach to nurturing startups while being critical of Indian ventures. 

Banerjee’s retort was direct: “Have you done what the Chinese have done for their startups, Sir? First put your house in order before pointing fingers at startups.”

While Goyal has announced new support measures — including a toll-free Startup India helpline and a ₹10,000 crore Fund of Funds — Banerjee questioned whether these moves truly address grassroots challenges. 

“Your institutions are archaic and not suited for the rapid pace of the startup world,” he wrote.

The helpline will assist entrepreneurs in regional languages, while ₹2,000 crore from the fund is set to be disbursed this year through SIDBI. The focus is on supporting early-stage ventures in deep-tech domains like AI, robotics, and semiconductor design.

Goyal has urged SIDBI to set up at least one support centre in every state. But Banerjee’s post is a reminder that no fund or desk can fix what startups still face daily: friction in formation, uncertainty in compliance, and resistance from lending institutions. “Millions of jobs have been created by startups and your government has earned millions in taxes,” Banerjee wrote.