Piyush Goyal challenges Indian start-ups to innovate beyond consumer products

In India, a heated debate erupted following comments made by Commerce Minister Piyush Goyal during the Startup Mahakumbh event. Goyal highlighted the potential of India's start-up ecosystem, currently the third largest in the world, yet cautioned against the predominance of consumer-focused start-ups. He emphasized the necessity for entrepreneurs to engage more in deep-tech innovations, which he believes are crucial for the country's technological progress. Goyal's statements ignited varied reactions among entrepreneurs and investors, with some praising his ambition while others perceived his suggestions as a critique of the existing start-up landscape. From the perspective of many entrepreneurs, the minister's remarks prompted an essential discussion on the balance between consumer internet companies and the need for deep-tech innovations in India. For instance, Aadit Palicha, co-founder of Zepto, pointed out that many of the current tech giants began as consumer platforms before becoming key players in advanced technologies such as cloud computing. He argued that government support for consumer internet companies could lead to increased innovation and further development in the deep-tech arena. Many participants at the Startup Mahakumbh echoed the sentiment that while ambition is commendable, significant systemic changes are necessary to foster the deep-tech start-up environment. Investors and entrepreneurs alike stressed the need for long-term financial backing—referred to as “patient money”—to support the time-consuming and infrastructure-heavy developments characteristic of deep-tech research and product creation. In a broader context, industry analysts noted that while India has around 4,000 deep-tech start-ups, projections anticipate this figure will double by 2030. This growth corresponds with a highlighted trend of increasing investments, as evidenced by a reported $1.6 billion raised in 2024 for deep-tech ventures, marking a substantial year-on-year increase. Establishing innovation funds, building academic partnerships, and providing incentives for advancing hardware and AI technologies are recommended strategies to secure the future of India's technological landscape.