Piyush Goyal, India’s Minister of Commerce and Industry, stirred up debate at the recent Startup Mahakumbh 2025 with his comments on the focus of Indian startups. In his speech, Goyal questioned whether India wants to make ice cream or semiconductor chips. He pointed out that many Indian startups are focused on consumer-facing products like food delivery apps, fancy ice cream, instant grocery delivery, and betting apps.
In contrast, he noted that Chinese startups are making advances in areas like electric vehicles, semiconductors, AI, and robotics. Some startup founders, like Bhavish Aggarwal of Ola and Aman Gupta of boAt, agreed with Goyal’s call to aim higher. But others, like Aadit Palicha of Zepto, defended their companies’ contributions to the economy through job creation and tax payments.
The debate brought to light some of the challenges facing India’s innovation ecosystem. Several founders shared stories of bureaucratic hurdles and corruption that made it hard to innovate, especially in deep tech sectors. The numbers back up Goyal’s concerns.
Only about 5% of startup funding in India goes to deep tech, compared to 35% in China. India also spends much less on research and development as a percentage of GDP than countries with strong tech growth. Part of the problem may lie in India’s education system and culture, which often discourage creativity and risk-taking.
From schools that emphasize memorization to social stigmas around failure, the environment makes it hard for pioneering ideas to take root. To become a deep tech leader, India will need more than just criticism from ministers. It will require changes in education, more investment in R&D, and a supportive ecosystem that encourages creative thinking.
Indian startups face innovation dilemma
Goyal’s speech has sparked an important discussion. Indian startups are at a turning point.
Without systemic changes, the country’s deep tech dreams may remain out of reach. For now, the most honest innovation might be exactly what it looks like: vegan ice cream. In response to Goyal’s comments, Karan Chawla, co-founder of Gaonzy, took to LinkedIn to defend consumer tech startups.
He argued that the issue isn’t what startups are building, but rather the lack of institutional support for deep tech innovation in India. “India’s deep-tech scene isn’t lacking talent. It’s lacking institutional support, patient capital, and a coherent policy environment,” Chawla wrote.
He questioned why large Indian companies and institutions haven’t built globally respected deep tech products. Chawla also highlighted the contributions of consumer startups in creating jobs, building infrastructure, and serving customers. “Not every revolution looks like AI chips.
Some are built one doorstep at a time,” he said. Goyal announced the launch of a new startup helpline where entrepreneurs can report corruption, suggest reforms, and flag grievances. The helpline is part of the government’s Startup India initiative to support the startup ecosystem.
As the debate continues, it’s clear that India’s startup community is at a crossroads. The country has enormous potential for innovation, but unlocking it will require a concerted effort from entrepreneurs, investors, and policymakers alike.
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