Piyush Goyal Urges Startups to Shift Focus from Food Delivery to Tech Innovation

Criticizing India's startup ecosystem bluntly, Union Commerce Minister Piyush Goyal said, "While many startups in this country are busy either doing food delivery or betting and fantasy sports apps, in China, the startups are working on sectors like EV, battery technology, semiconductors, and AI."

Addressing the Startup Maha Kumbh on Thursday, Goyal asked whether the country was happy with making low-paid gig jobs instead of aiming for technological advancement. "Do we have to make ice cream or chips? Dukaandari hi karna hai (Do we want to just sell things)," he asked.

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According to the government data, India is the third-largest startup hub in the country with more than 100 unicorns. It is also the country where more than 1.57 lakh startups are recognized by the government.

Addressing startups to rethink their objectives, the Union Minister posed the question: "Are we going to be happy being delivery boys and girls? Is that the destiny of India...this is not startup, this is entrepreneurship."Likening the startup ecosystem in China now reportedly ahead in AI and technology, Goyal stated that Indian startups certainly need some reality check.

"What are India's startups of today? We are focused on food delivery apps, turning unemployed youths into cheap labour so the rich can get their meals without moving out of their house," Goyal said.

Calling for a focus on innovation beyond e-commerce, Goyal pointed out that there were only a limited number of deep-tech startups in India. "Only 1,000 startups in India's deep-tech space is a disturbing situation," he said. The Commerce Minister then insisted that the new start-up should also prepare the nation for the future. "I feel sad when I come to know that for Rs 25 lakh or Rs 50 lakh, a bright idea of a young start-up got sold to the foreign company," he further added.

Industry Leaders Slam on X

A content creator named Venkatesh Alla stated, "Dear @PiyushGoyal, @narendramodi, @nsitharaman, I hope you and your government can take this slap. It’s outrageous that, despite the deep flaws and failures within your administration, you have the audacity to criticize startups. Isn't that the real shame? With government departments rotting in corruption to the core, how can India ever hope to compete with China on the global stage?

He said about his friend, who was planning to start an automotive manufacturing unit. He listed out some points that his friend faced during that phase. He slams Piyush Goyal for talking about competing with China, and he also claims that the Government itself can't handle a basic EPFO website.

Moreover, former Infosys executive Mohandas Pai also questions Piyush Goyal, "Why are the organizers pushing Chinese propaganda against India?"

"These are bad comparisons. Piyush Goyal should not belittle our startups but ask himself what has he done as our Minister to help deep-tech start-ups grow in India? It is easy to point fingers at them," Pai tweeted.

Taking a jab at Finance Minister Nirmala Sitharaman, Pai charged that the startups have been hounded by the Angel tax for many years.

Final Thought

Piyush Goyal’s sharp criticism of India’s startup ecosystem has opened up a heated debate. While his message was meant to push startups toward deeper innovation and future-ready technology, many in the industry feel the tone was unfair and dismissive. Startups have played a major role in creating jobs, improving services, and boosting the economy. Critics argue that instead of blaming young entrepreneurs, the government should fix policy roadblocks, support deep-tech ideas with better funding, and build strong digital infrastructure.

The future of India’s startup space depends not just on bold ideas but also on a support system that values both service-based innovation and high-tech progress. A more balanced, respectful dialogue between the government and entrepreneurs could be the key to turning India's potential into global leadership in innovation.

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