Indian startup ecosystem New Delhi, April 4, 2025 — In a candid address at the Startup Maha Kumbh, Union Commerce Minister Piyush Goyal held up a mirror to India’s startup ecosystem, highlighting the growing gap between Indian startups and their Chinese counterparts. His message was clear: it’s time to move beyond convenience-based apps and start building real technology for the future.
“Are We Just Building Delivery Apps?”
Goyal didn’t mince words as he criticized the current trend in Indian startups.
“We are making food and hyper-delivery apps, creating cheap labour so the rich can get meals without stepping out. Meanwhile, China is working on EVs, AI, semiconductors,” he said.
Indian startup ecosystem He pointed out that many Indian startups are focused on:
- Instant food and grocery delivery
- Fancy snacks and novelty desserts
- Betting, fantasy sports, and influencer-based platforms
While these may be popular and profitable in the short term, Goyal questioned their long-term value compared to what Chinese startups are developing.
The China Comparison: Building Real Tech
In his presentation, Goyal showcased how China is investing in industries that shape the future:
- Electric Vehicles (EVs) and battery technology
- Semiconductors and Artificial Intelligence
- Robotics, automation, and deep-tech infrastructure
- Global supply chains and logistics
He praised Chinese startups for their focus on innovation and global commerce, Indian startup ecosystem pointing to companies like Shein, DJI, and Alibaba, which have grown into supply chain powerhouses.
“We Need to Own Our Ideas”
Goyal also expressed concern about the ownership of Indian startup ideas falling into foreign hands.
“It saddens me to hear that brilliant Indian startups are sold for just ₹25 or ₹50 lakh to foreign companies. We need to build with Indian capital and retain ownership,” he said.
He called on unicorn founders and Indian investors to support young entrepreneurs and create funds that help nurture domestic innovation.
India Has the Talent, But Are We Using It Right?
Indian startup ecosystem With India producing the highest number of STEM graduates every year, Goyal asked a powerful question:
“Are you proud that we’re creating delivery boys and girls with that talent?”
He emphasized that India’s potential lies in research and innovation — not just in serving convenience through apps. He reminded the audience that Prime Minister Modi had recently added “Jai Anusandhaan” (Victory to Research) to the national slogan, urging startups to adopt this spirit.
Betting Apps vs. Productive Innovation
Another point of concern raised by the minister was the rise of betting and gambling apps, which he said encourage addiction rather than contribute to real economic growth.
“We should be focusing on building the next tech giants, not distractions,” he warned.
The Road Ahead
Piyush Goyal’s speech served as both a wake-up call and a challenge to Indian entrepreneurs. While acknowledging the success of India’s startup boom, he stressed the importance of shifting focus toward deep tech, core research, and world-changing innovation.
If Indian startups rise to the occasion, the country can become not just a hub for apps — but a true global tech powerhouse.
