India’s startup ecosystem has come a long way, with multiple unicorns in delivery, fintech, and e-commerce. Yet, at Startup Mahakumbh 2025, Union Commerce Minister Piyush Goyal challenged this growth narrative. In a thought-provoking address, he urged entrepreneurs to pivot from convenience-based solutions to deep technology and innovation-led models that could position India as a global leader in advanced sectors.
In one of the most quoted lines of the event, Goyal asked a piercing question: Should India be content with startups that build fleets of “delivery boys and girls,” or should it strive for technological breakthroughs like semiconductors and artificial intelligence?
Acknowledging the success of India’s food and grocery delivery startups, he questioned their long-term impact, especially when juxtaposed with Chinese startups focusing on electric vehicles and battery technologies. The minister highlighted that while India has seen a boom in valuations, it may still lag behind in global technological competitiveness.
Goyal didn’t hold back from commenting on the trend of startups venturing into niche and luxury products. “Healthy ice cream, zero gluten-free, whatever, vegan”—he remarked, pointing out that while such products may have a market, they don’t necessarily align with the broader national vision of technological self-reliance.
The contrast was clear: while some Indian founders are innovating in gourmet experiences, their global counterparts are investing in chips, robotics, and AI. According to Goyal, India needs to redefine what success in the startup space looks like—less flash, more substance.
A recurring concern during the address was the dominance of foreign capital in India’s most visible startups. Goyal expressed his wish for more Indian investors to take part in the startup story. “I only wish they had more Indian investors rather than foreigners buying off all our startups,” he stated.
He noted that while achieving billion-dollar valuations is commendable, it is equally important for domestic investors to participate in wealth creation. He drew attention to the imbalance in capital flow, where Indian startups, built on local talent and innovation, often end up owned by global funds.
The minister laid down a long-term vision: for India to become a developed nation by 2047, its startup ecosystem must play a transformative role. That includes embracing deep tech sectors such as advanced manufacturing, AI, and semiconductors.
India, according to Goyal, currently has around 1,000 deep tech startups—an insufficient number if the country wishes to compete with the world’s best. He described this as a “disturbing sign,” particularly when set against the backcloth of short-term, service-based innovation.
With India pursuing free trade agreements with developed economies such as Australia, the European Union, and the United States, Goyal emphasised that the nation is not aiming for mediocrity. The ambition, he said, is clear: to be a serious contender in global trade and innovation.
He referred to startup founders as “sculptors of New India” and urged them to “go beyond the boundaries of our own thinking.” The call to action was not just about building for India but building from India for the world.
Piyush Goyal’s message at Startup Mahakumbh 2025 was unmistakable: the future of India’s startup ecosystem should not rest solely on the success of food delivery apps or artisanal snacks. Instead, it must expand its horizon to embrace deep technological innovation. As India eyes its 2047 development goals, startups are expected to not just create convenience—but to create capability.
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Published on: Apr 4, 2025, 5:30 PM IST
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