Indian Commerce Minister Piyush Goyal has referred to as for a serious introspection inside India’s startup ecosystem, criticising its overemphasis on prompt comfort providers whereas lagging in deeptech and high-impact industries.
Talking at Startup Mahakumbh, Goyal warned that many Indian startups are creating companies with little long-term worth, urging a shift towards innovation that actually contributes to the nation’s financial and technological development, as reported by CNBC.
“Indian startups want a actuality examine when it comes to what they’re doing. It’s important that we give attention to industries that actually add worth to our economic system. We shouldn’t shrink back from competitors, however slightly try for innovation and long-term sustainability,” Goyal said.
Evaluating India’s startup panorama to China’s, he identified that whereas Chinese language corporations are pioneering developments in semiconductors, robotics, EVs, and battery applied sciences, many Indian startups are targeted on “fancy ice lotions” and grocery supply.
Goyal took goal at startups prioritising meals supply apps and hyper-fast logistics over deeptech innovation, stating that they usually cut back unemployed youth to low-cost labour slightly than fostering significant technological developments.
Deeptech Stays a Weak Spot
Goyal expressed concern over India’s underdeveloped deeptech sector, highlighting that solely about 1,000 startups are engaged on this area. Calling it a “disturbing state of affairs,” he confused the urgency of accelerating funding and focus in deeptech to maintain up with international competitors.
Whereas acknowledging the success of meals supply and e-commerce corporations, he questioned their long-term contributions, arguing that such companies fail to generate high-value employment or technological breakthroughs.
“We have to transfer past the cycle of making companies that don’t have any actual worth. Hyper-fast logistics and prompt meals deliveries could appear glamorous, however they aren’t shaping the way forward for the nation,” he remarked.
In a direct enchantment to buyers and entrepreneurs, Goyal urged them to rethink their enterprise fashions. He particularly talked about Shark Tank India and referred to as on buyers like boAt’s Aman Gupta to give attention to sustainable, innovation-driven startups slightly than short-term, low-impact companies.
Goyal additionally raised considerations about India’s ongoing mind drain, lamenting that modern startups are continuously offered to international corporations for small sums.
“It’s heartbreaking to see a brilliant startup concept offered for ₹50-60 lakh to international corporations,” he mentioned, calling on India’s unicorns and enterprise leaders to create a fund to assist home innovation. He urged business our bodies like CII, FICCI, and Assocham to step up and assist scale homegrown deeptech ventures.
“We should encourage the subsequent technology to suppose creatively and work in direction of groundbreaking options, that are the true drivers of financial development,” he concluded.
“Lack of Capital Is the Actual Drawback, Not Simply Innovation, ” Mohandas Pai
Trade veteran and former CFO of Infosys, Mohandas Pai responded to Goyal’s remarks on X, acknowledging the presence of deeptech startups in chip design, IoT, robotics, and EV applied sciences however highlighting the extreme lack of capital as a serious bottleneck for his or her development.
“There are numerous small deeptech startups in India rising quickly, however the place is the capital? Indian startups acquired $160 billion from 2014-24, whereas China received $845 billion, and the US secured $2.3 trillion. Lengthy-term buyers like endowments and insurance coverage funds nonetheless don’t make investments, regardless of the federal government’s efforts,” Pai identified.
He additionally criticised regulatory challenges, stating that AIF investments are dealing with extreme oversight, and RBI’s remittance insurance policies are discouraging abroad buyers.
Pai additional famous that whereas India has the expertise for fast-charging EV buses, most public transport techniques are dominated by PSUs, making it practically unimaginable for startups to promote their improvements.
Calling for pressing intervention, he urged the federal government to deal with the regulatory roadblocks and funding gaps holding again India’s deeptech ecosystem.
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