At the Startup Maha Kumbh 2025, Union Commerce Minister Piyush Goyal made a pointed observation: “We are making food/hyper delivery apps; creating cheap labour so that the rich can have a meal without stepping out while the Chinese are working on EVs, AI and semiconductors.” His statement highlights the gap between the current focus of many Indian startups and the deep-tech innovation being pursued in countries like China. The message was clear—India’s startup ecosystem needs to shift its focus towards more ambitious, innovation-led ventures.
China’s focus on artificial intelligence is relentless. With over 4,500 AI-related companies and more than 300 GenAI products, the country has swiftly embedded AI into its economic strategy.
According to Stanford’s Global Vibrancy Tool 2024, China leads globally in AI patent filings, outpacing even the United States. It’s also gaining traction in real-world usage, with over 230 million AI users by June 2024 and every sixth internet user engaging with GenAI tools.
To fuel this growth, China has pledged $140 billion in AI investments and is expected to commit $1.4 trillion by 2030. Major companies like Alibaba, Baidu, and DeepSeek are central to this charge, building models and applications that compete with the world’s best.
But China’s edge doesn’t stop at capital. It has:
Even US-imposed chip export restrictions haven’t stopped the momentum.
India, long dubbed a sleeping giant in AI, has now begun to stir. In March 2024, the government launched the IndiaAI Mission with a budget outlay of ₹10,372 crore (approx. $1.2 billion) spread over 5 years.
The Union Budget 2025–26 provided a further boost, increasing the allocation to ₹2,000 crore—a significant leap from the previous year’s ₹806.8 crore. In total, India has earmarked ₹4,349.8 crore so far to promote indigenous research, innovation, and AI ecosystem development.
A cornerstone of India’s approach is to build its own Large Language Models (LLMs)—AI tools designed to understand and process India’s diverse languages and contexts. Within the next 4–8 months, India plans to launch 6 indigenous AI models to compete with the likes of ChatGPT and Google Gemini.
To support this growth, India is investing in talent development, including a ₹500 crore Centre of Excellence in AI education and five National Centres of Excellence for AI skilling. Yet, this remains modest when compared to global benchmarks:
India’s startup ecosystem is bustling with innovation, and technology adoption has been nothing short of remarkable. From food delivery to quick commerce, startups have successfully transformed consumer behaviour by offering unparalleled convenience. But as we celebrate this progress, it’s also worth asking: with so much focus on convenience, are we overlooking areas that could benefit from similar innovation?
From piping hot biryanis to bubble tea, Indian startups are racing to deliver anything, anywhere, anytime. These platforms have set new benchmarks in logistics and service, catering effectively to fast-paced urban lifestyles. As the ecosystem matures, there’s growing interest in exploring how such models can also support local economies and smaller towns.
A new generation of food startups is blending indulgence with wellness, offering treats that align with evolving consumer preferences.
India loves sports, and fantasy platforms have tapped into this passion by allowing individuals to create their own dream teams and engage more deeply with the games they follow. These platforms have not only enhanced the fan experience but also created a new digital experience for millions of fans and sports lovers.
In stark contrast, China’s startup ecosystem is shaped by a different vision.
Companies like BYD are leading China’s EV revolution—not just domestically but globally. Their R&D-led approach is transforming transport infrastructure and climate goals alike.
China’s startups are chasing tech independence. From silicon chips to super-intelligent AI models like DeepSeek, they are building tools that define the next technological era.
Next-gen factories powered by robotics and AI are reducing reliance on human labour and enhancing production efficiency across industries.
Chinese firms like Alibaba, DJI, and Shein are not just startups—they’re full-fledged global logistics and commerce machines, building supply chains that the world depends on.
From solar tech to space missions, Chinese startups are aligning with national interests. Their projects are long-term, capital-intensive, and often strategically significant.
India and China are both nurturing thriving startup ecosystems, but the underlying intent behind the innovation varies significantly.
This isn’t to say India is doing it all wrong. Every ecosystem evolves in phases. But as Minister Goyal implied, perhaps it’s time for India’s startups to dream beyond the next delivery—and start thinking about the next decade.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 4, 2025, 4:10 PM IST
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