New Delhi, April 4, 2025— In a compelling address at the second edition of Startup Mahakumbh on Thursday, April 3, Union Commerce and Industry Minister Piyush Goyal called on Indian startups to pivot from conventional sectors like grocery delivery and ice cream production to pioneering fields such as semiconductors, artificial intelligence (AI), robotics, and machine learning. Speaking at Bharat Mandapam in New Delhi, Goyal emphasized the need for a transformative approach to entrepreneurship to position India as a global leader in technological innovation.
“Are we satisfied being delivery agents? Is this what India is meant for? This isn’t just about launching startups; it’s about genuine entrepreneurship,” Goyal remarked, drawing a sharp contrast between India’s current startup landscape and China’s strides in deep-tech areas like robotics, 3D printing, and smart manufacturing. He urged entrepreneurs to rethink their priorities, asking, “Should we be making ice cream or manufacturing microchips?” to highlight the untapped potential in high-tech industries.
Critique of Delivery-Focused Startups
Goyal pointed to the dominance of delivery-focused startups in India, citing examples like Zomato and Swiggy, two of the country’s leading food delivery platforms. Zomato, founded in 2008, reported a revenue of ₹12,114 crore in FY24, while Swiggy, established in 2014, has been valued at over $10 billion, reflecting the massive scale of the food delivery sector. Similarly, quick-commerce players like Blinkit (formerly Grofers) and Zepto have gained traction, with Zepto recently claiming to support livelihoods for nearly 1.5 lakh gig workers. While acknowledging their success, Goyal argued that such ventures, though economically significant, fall short of driving the kind of innovation India needs to compete globally.
Push for Deep-Tech Innovation
The minister expressed concern over the limited presence of deep-tech startups in India, noting that only about 1,000 such companies currently operate in the ecosystem—a figure he described as “disturbing.” However, India’s deep-tech sector is showing signs of growth. According to a 2023 NASSCOM report, India is home to over 3,000 tech startups, with deep-tech ventures—those leveraging AI, robotics, and advanced manufacturing—accounting for a growing share. Companies like Krutrim, an AI unicorn founded by Ola’s Bhavish Aggarwal, aim to build indigenous large language models, while Saankhya Labs is making waves in semiconductor design for 5G and satellite communication. In the electric vehicle (EV) space, Log9 Materials is innovating with battery technology, securing $19.5 million in funding in 2023.
Despite these advancements, Goyal stressed that India lags behind countries like China, where investments in deep tech reached $845 billion between 2014 and 2024, compared to India’s $160 billion in the same period, as highlighted by industry experts on social media platforms like X. “We must aspire to compete with the best in the world,” he said, urging startups to focus on scalable, impactful technologies.
Government Support and Domestic Investment
Reaffirming the government’s commitment, Goyal assured entrepreneurs of continued support, stating, “We will handhold and guide those facing challenges, encouraging them to persevere.” He also emphasized the critical role of domestic investment in building a self-reliant startup ecosystem. “A strong foundation of indigenous funding is essential to reduce dependency on foreign capital and ensure long-term economic sustainability,” he noted. Goyal called on Indian investors to back homegrown talent, citing the need to create a resilient financial backbone for innovation.
A Vision for the Future
The minister’s remarks come as India’s startup ecosystem gains global recognition, with over 100 unicorns and a valuation exceeding $350 billion as of 2024, per industry estimates. Yet, Goyal’s speech underscored a pivotal moment for the sector—to evolve beyond convenience-driven businesses and embrace cutting-edge technology. As the Startup Mahakumbh, running from April 3-5, showcases over 3,000 startups and attracts participants from 50 countries, Goyal’s vision sets the tone for a tech-driven future, aligning with India’s ambition to become the world’s third-largest economy by 2027.
With the government’s backing and a clarion call to prioritize deep tech, Indian startups now face the challenge of redefining their trajectory to leave a lasting mark on the global stage.
