Union Commerce Minister Piyush Goyal delivered a blunt reality check to the Indian startup ecosystem during the second edition of Startup Maha Kumbh in April 2025. Drawing a sharp contrast between Indian and Chinese startup trends, he highlighted India’s over-focus on hyperlocal services and entertainment apps, while China dominates deep technology sectors like artificial intelligence, electric vehicles, and semiconductors.
Comparing Startups: India vs China
During his keynote address, Goyal showcased a comparison slide listing Indian startups primarily working on:
- Food delivery apps
- Instant grocery platforms
- Fantasy sports and betting apps
- Influencer-based entertainment
- Fancy desserts and cookies
In contrast, he praised Chinese startups for advancing technologies such as:
- EVs and battery tech
- Semiconductors and AI
- Robotics and automation
- Global logistics and trade tech
- Deep-tech infrastructure development
He emphasized that while Indian startups are focused on making convenience tools for the privileged, Chinese innovators are reshaping the global technology landscape.
Call for Domestic Investment and Long-Term Vision
Goyal expressed concern over the increasing foreign ownership of Indian startups. He urged unicorn founders and industry leaders to create domestic funding pools that retain innovation and ownership within India.
“It’s disheartening to hear of brilliant ideas being sold off to foreign investors for just Rs 25 or 50 lakh,” he said. “We must foster an environment where Indian capital backs Indian innovation.”
More Than Delivery Jobs: Building for the Future
Highlighting India’s vast talent pool, Goyal questioned whether the current trajectory is doing justice to its STEM graduates.
“India produces the largest number of STEM graduates annually. Are we using them to build delivery fleets or future-defining technologies?” he asked.
Quoting PM Modi’s upgraded national motto — “Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhaan” — Goyal pushed for a stronger emphasis on research and innovation.
Criticism of Fantasy and Betting Apps
He raised alarm over the proliferation of betting and fantasy apps, stating they contribute more to gambling addiction than real economic output.
“While our developers focus on addiction-driven entertainment, China is creating giants like DJI, Alibaba, and Shein that control global supply chains,” Goyal stated.
Conclusion
Piyush Goyal’s address was a wake-up call for the Indian startup ecosystem. Urging a shift from convenience and quick-return ventures to long-term, deep-tech solutions, he encouraged domestic stakeholders to reimagine innovation as a national mission. As India aims to become a global economic powerhouse, the path forward must be paved with more than food delivery and fantasy leagues — it must lead toward foundational technologies and sustainable industry leadership.
FAQs
What did Piyush Goyal say about Indian startups?
He criticized their over-reliance on food delivery, fantasy sports, and influencer platforms, urging them to shift focus to AI, EVs, semiconductors, and other deep-tech fields.
How did Goyal compare India and China’s startup ecosystems?
He said Chinese startups are advancing in EVs, AI, robotics, and trade tech, while Indian startups are stuck in consumer convenience and entertainment apps.
What did he suggest regarding funding?
Goyal encouraged more domestic investment in startups to avoid early foreign buyouts and to retain ownership within India.
What is the role of STEM graduates in this vision?
He emphasized that India’s large STEM graduate base should be channelled into high-impact innovation rather than logistical support roles.
What was his view on betting and fantasy sports apps?
He criticized them as contributors to addiction rather than to meaningful economic productivity or innovation.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.