He said these start-ups will help solve India's problems in the future, he said.
"By 2025, I believe that we will have 1,00,000 start-ups all over the country. They will create $500 billion of value and lot of money for investors. They will employ 3.25 million people," Pai told PTI on the sidelines of Rajasthan Digifest here.
Currently, there are 32,000 start-ups and every year 7,000 companies are coming around.
"Youngsters through the use of technology are solving hard core challenges and I believe that innovation by young people will transform India," Pai said.
The impact has already been seen in many sectors including education, healthcare, education and e-commerce.
The two day Rajasthan Digifest, which started on Saturday, is aimed at providing a platform for entrepreneurs and start-ups to get more traction leading to funding, engagement and increasing the customer base.