Athira Sethu
Kochi, 4 April 2025
During the Startup Mahakumbh event, Commerce Minister Piyush Goyal raised concerns regarding India’s startup ecosystem, particularly in comparison to China’s emphasis on deep-tech innovation. Goyal called on entrepreneurs to not focus on rapid commerce services such as food delivery and instead work towards high-impact, world-relevant startups. He emphasized that India is famous for apps that provide convenience, but China has dominated the world in electric mobility and semiconductors.
While appreciating the success of India in segments like food delivery and e-commerce, Goyal criticized their sustainability over the long run. He underlined the fact that China’s startups are constructing technologies of the future like electric vehicles and artificial intelligence, and India needs to do the same to produce similar breakthrough innovations like semiconductors.
Goyal’s remarks were criticized by many startup founders. Aadit Palicha, Zepto co-founder, did not agree with Goyal’s statement and said that India must create strong local champions in the internet sector first before looking to achieve high-tech revolutions. He asked the government to encourage internet-based startups, which can ultimately pave the way for more sophisticated technology innovations.
Ex-Infosys director Mohandas Pai also censured the government for being less than diligent in promoting deep-tech startups. Pai cited policy such as the Angel tax and institutional lack of investment as deterrents to Indian startups. Pai believed that instead of complaining against current startups, the government can provide an ecosystem that promote the success of deep-tech innovation.
