Union Minister of Commerce and Industry Piyush Goyal’s recent remarks at the Startup Mahakumbh 2025 in New Delhi stood out for their rare candour. Questioning Indian startups’ obsession with food delivery and quick commerce apps, Goyal asked bluntly, “Do we have to make ice creams or chips? Is retail trade our only ambition?” It was a much-needed reality check from a senior minister, urging Indian entrepreneurs to look beyond convenience apps and towards deep-tech sectors like robotics, artificial intelligence, and semiconductors.
This departure from the usual applause-only approach deserves acknowledgement. Government representatives typically prefer to paint a rosy picture about the India growth story, glossing over uncomfortable questions about the nature and direction of that success.
But as refreshing as his words were, they also raise an unavoidable question: if India’s startup ecosystem is indeed falling short on deep-tech innovation, what has the government done to change that trajectory?
Goyal’s comparison with China was particularly pointed. Chinese startups today lead in electric vehicles (EVs), battery technology, and semiconductors — industries that not only generate profits but also shape global influence. In contrast, India’s startup landscape has been dominated by consumer-facing ventures promising faster deliveries rather than frontier technologies.
Yet, this is not a simple case of entrepreneurs lacking vision or ambition. As Zepto’s CEO Aadit Palicha pointed out, his 3.5-year-old quick commerce company employs 1.5 lakh people and contributes over Rs 1,000 crore in taxes. These are substantial achievements in a country where job creation and tax compliance remain challenges.
Still, the minister’s call to look beyond low-hanging fruits is timely. But such a call must be backed by action. Between 2014 and 2024, China invested a staggering $845 billion in its startups, compared to India’s $160 billion, as pointed out by industry veteran Mohandas Pai. That figure highlights the enormity of the challenge. Deep-tech innovation requires not just entrepreneurial spirit but serious capital, infrastructure, and sustained policy support.
This is where the government’s role becomes critical. India’s R&D spending remains below 0.7% of GDP, compared to China’s 2.4%. Venture capital naturally gravitates towards consumer tech, not because entrepreneurs lack imagination, but because the risk-reward equation in deep-tech is skewed without state-backed patient capital. It is only recently that measures like the removal of the Angel Tax have begun to signal an intent to create a more conducive environment.
Moreover, India has already demonstrated what is possible when government support meets private sector capability. The response of the Indian pharmaceutical sector during the Covid-19 pandemic is a case in point. Backed by enabling policies and expedited regulatory clearances, Indian pharma firms not only met domestic demand but became the pharmacy of the world — supplying affordable vaccines and medicines even to developed nations. It was a striking example of how Indian industry can rise to global leadership when provided with the right ecosystem. This success story underscores the core point — Indian entrepreneurs are capable of competing globally when supported by visionary policies and facilitative governance.
The same approach is needed now for sectors like semiconductors, battery technology, and advanced manufacturing.
That is not to say there are no bright spots already. Companies like Qure.ai in healthcare AI, Agnikul Cosmos in space technology, and Log9 Materials in battery innovation are pushing boundaries. But these are exceptions rather than the norm, often operating despite systemic constraints rather than because of supportive policies.
The government’s flagship Startup India initiative, launched in 2016 with the promise of tax breaks, incubators, and funding support, has had its successes. But the reality on the ground suggests that deep-tech ventures still face daunting bureaucratic hurdles, delayed clearances, and limited access to large-scale funding. In contrast, China’s coordinated strategy offers tax holidays, land grants, and robust talent pipelines aimed squarely at dominating future technologies.
Goyal’s remarks, therefore, should not be seen as an indictment of Indian entrepreneurs but as a mirror reflecting the need for a stronger policy push. If the ambition is to see Indian startups building the next generation of EVs, semiconductors, or AI breakthroughs, the government must go beyond rhetoric. It must create an environment where deep-tech founders have access to risk capital, streamlined clearances, world-class infrastructure, and advanced skilling opportunities.
India’s startup ecosystem has created jobs, improved efficiencies, and generated substantial economic value. But the next leap — from consumption-led innovation to cutting-edge deep-tech leadership — will require more than inspirational speeches. It will require policy muscle, long-term investment, and the removal of systemic roadblocks. Piyush Goyal has held up the mirror. The next move must come from those who hold the levers of power.