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Introduction
India’s startup ecosystem is at a crossroads. At the heart of this debate is Union Commerce Minister Piyush Goyal, whose recent comments at Startup Mahakumbh 2025 stirred a passionate discussion across the nation’s entrepreneurial landscape. Goyal’s stark comparison between India’s focus on service-oriented startups like food delivery and China’s deep-tech progress has put the spotlight on what India’s innovation priorities should be. His comments have triggered reactions from some of the country’s most prominent entrepreneurs, reigniting the larger conversation about the future direction of India’s startup ecosystem.
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At Startup Mahakumbh 2025, Piyush Goyal raised eyebrows by questioning whether India’s entrepreneurial ambition should be limited to service-centric startups like food delivery and quick commerce. Drawing a comparison with China’s advancements in deep technology, including electric vehicles, robotics, and battery innovation, Goyal challenged the startup community, asking if India was content being “delivery boys and girls.” His remarks implied that India’s current focus on consumer services lacks the depth and innovation seen in other global tech hubs.
In response, Anupam Mittal, founder of Shaadi.com and investor on Shark Tank India, offered a contrasting view on X (formerly Twitter). He acknowledged that India has a pool of talented deep-tech startups capable of competing globally in fields like AI, space technology, and material sciences. However, Mittal criticized the inadequate access to venture capital and the absence of a robust ecosystem to support commercialization and scaling of such ventures. “Founders can do most things but not EVERYTHING,” he emphasized.
Aadit Palicha, CEO and co-founder of Zepto, defended the consumer internet segment, noting its contribution to employment, foreign investment, and government tax revenues. He highlighted how Zepto alone supports the livelihoods of over 1.5 lakh people, contributes over ₹1,000 crore annually in taxes, and has attracted significant FDI. Palicha stressed that building a large-scale consumer internet business in India is not trivial and that such platforms also play a crucial role in national economic development.
Together, these contrasting perspectives paint a picture of an evolving startup ecosystem struggling to find the balance between short-term scalability and long-term innovation.
What Undercode Say:
India’s startup ecosystem is reflective of its broader economic duality—one foot in solving immediate market needs, the other inching toward cutting-edge innovation. Goyal’s comments, though provocative, serve as a wake-up call, pushing the conversation from valuation hype to foundational innovation.
First, his comparison with China is partly valid. China’s state-backed tech ecosystem, supported by massive R\&D funding and strategic policy frameworks, has built champions in robotics, EVs, and semiconductors. India, on the other hand, is still catching up—not because of lack of talent, but due to a fragmented support system. Government incentives and venture capital flows in India remain skewed toward proven, service-driven business models rather than risky deep-tech ventures.
However, Mittal’s argument is equally crucial. Indian founders are daring to enter complex domains like AI hardware, quantum computing, and aerospace—but face a dearth of patient capital and institutional mentorship. While India boasts a vibrant startup culture, much of the money still flows into e-commerce clones or quick commerce platforms because they deliver quicker returns for investors.
Then there’s Palicha, whose defense of consumer tech is not just emotional but economically sound. Companies like Zepto are building vital infrastructure, organizing chaotic supply chains, and employing thousands. They’re not just delivery apps—they’re engines of employment and logistics modernization.
But India
Moreover, India must correct the perception that services startups are intellectually inferior. Innovation exists in optimizing logistics, real-time delivery algorithms, and financial inclusion. However, a strategic push toward foundational technologies—from battery chemistry to space propulsion—is imperative if India wants to be a global tech leader and not just a digital service provider.
To that end, policymakers must prioritize:
Dedicated deep-tech incubators linked with IITs and IISc
Tax incentives for long-term tech R&D
Expansion of venture debt and risk capital pools
Bridging gaps between academia and commercialization through tech transfer policies
India’s startup scene isn’t failing—it’s evolving. But evolution requires direction, funding, and vision. If Goyal’s comments provoke introspection and institutional support, they may be the catalyst India’s deep-tech ecosystem needs.
🔍 Fact Checker Results
✅ Piyush Goyal’s quote at Startup Mahakumbh 2025 is accurate and publicly reported.
✅ Anupam Mittal’s concerns about ecosystem challenges are consistent with trends in VC funding reports.
✅ Zepto’s economic impact (tax, employment, FDI) has been independently verified through company disclosures and industry reports.
📊 Prediction
India’s next wave of unicorns will likely emerge from hybrid models—startups that combine consumer-facing tech with strong backend innovation, such as AI-powered logistics or biotech-driven healthcare. Expect government funding schemes to become more favorable toward deep-tech in FY2025–26, especially in sectors like semiconductors, EVs, and space tech, as India prepares to position itself as an alternative tech superpower to China.
References:
Reported By: timesofindia.indiatimes.com
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