A recent comment by India’s Commerce Minister, Piyush Goyal, on the country’s startup ecosystem has ignited a lively conversation across social media platforms. During the second edition of the Startup Mahakumbh conference, Goyal made remarks that have drawn both support and criticism from entrepreneurs.
Goyal focused on India’s consumer start-ups and their current emphasis on lifestyle products like gluten-free ice creams and food delivery apps. He contrasted this with advancements in tech, such as robotics, machine learning, and next-gen factories being developed elsewhere. Goyal’s comment, “Do we want to make ice creams or [semiconductor] chips?” was aimed at encouraging Indian entrepreneurs to aim higher and innovate more ambitiously.
His comments triggered a mixed response from India’s startup community. Some welcomed the call to aim higher, while others accused Goyal of unfairly criticizing the sector. Despite his critique, Goyal praised India’s position as the third-largest startup ecosystem globally, emphasizing the need for more significant investments and faster advancements.
Echoing Goyal’s remarks, angel investor Mohandas Pai pointed out the scarcity of funding for deep-tech startups in India, noting that investors often favor consumer-focused, quick-profit ventures. Pai advocated for long-term patient capital for deep-tech innovations, which require substantial infrastructure and time to develop.
Meanwhile, other business owners, such as Vironika S, founder of the edtech app Proxy Gyan, acknowledged the importance of AI and semiconductor advancements for India’s economic future but also highlighted the regulatory barriers that hinder progress. She urged the government to assist in removing obstacles.
Investor Kushal Bhagia also agreed with Goyal’s sentiment, citing the lack of deep-tech entrepreneurs in India and the migration of skilled talent to global markets. Bhagia emphasized the need for Indian startups to focus on ambitious global challenges and inspire future generations.
The debate intensified as comparisons were drawn between India’s and China’s startup landscapes. Reports revealed that India invested only 5% of startup capital in deep-tech ventures, compared to China’s 35%. Despite the challenges, India’s deep-tech sector is growing, with projections suggesting that the number of deep-tech startups will increase from 4,000 in 2024 to 10,000 by 2030.
Goyal’s remarks have sparked an urgent call to action, urging startups, investors, and the government to come together to foster deep-tech innovation through funding, strategic partnerships, and incentives.
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