Today, let’s have an honest and much-needed conversation about India’s startup ecosystem. This topic recently came into the spotlight after a candid and rather blunt statement from India’s Commerce Minister, Mr. Piyush Goyal, during the Startup Mahakumbh 2025. What he said has ignited debates across the entrepreneurial and tech community.
India’s Startup Boom – But at What Cost?
India has no shortage of startups. From Swiggy to Zomato to Zepto, the food and grocery delivery market is exploding. The model is simple: cheap labor, a young population, and the demand for instant services. But Mr. Goyal pointed out something uncomfortable — “Are we only doing shopkeeping in the name of startups?”
He highlighted how a vast portion of our youth is now working as delivery personnel, ensuring the rich get their meals and groceries without stepping out of their homes. Meanwhile, what’s happening in China? Their startups are investing in deep tech, AI, electric mobility, semiconductors, and space technology. That’s innovation.
The China Comparison: Innovation vs Convenience
It might sound bitter, but comparing ourselves to China is important. China is dominating in sectors like:
- Electric Vehicles and Battery Technology
- Artificial Intelligence
- Robotics and Automation
- High-speed Rail
- Renewable Energy
And us? We are stuck in a loop of food delivery apps, fantasy gaming platforms, and so-called “healthy ice creams.” As Mr. Goyal pointed out — “Ice cream can never really be healthy” — yet we see billionaires’ children launching startups to sell just that.
Is Innovation Being Left Behind?
Shows like Shark Tank India, while entertaining and inspiring, also showcase a pattern. Almost every second pitch is related to:
- Food products
- Beverages
- Packaged snacks
- Subscription meal services
Where is the hardware innovation? Where are the space-tech startups? Why are so few taking the risky road of innovation? If someone dares to dream big, they often hit a wall of scalability, funding hurdles, and poor manufacturing infrastructure.
Fantasy Gaming & Betting – A Growing Concern
Another disturbing trend: the rise of betting and fantasy gaming apps. Mr. Goyal pointed out the fact that India has more Dream11 accounts than Demat accounts. Let that sink in. Instead of investing in mutual funds or stocks, people are betting on fantasy cricket.
This gambling culture is being pushed by influencers, cricketers, and celebrities — all for money. It’s hurting families financially, and ethically, it’s creating a damaging societal pattern.
The Harsh Reality of Doing Business in India
While Piyush Goyal’s criticism is valid, many entrepreneurs also raised important points. Manufacturing in India is not easy. Red-tapism, bribes, delayed approvals, and bureaucracy continue to slow down genuine innovation.
Setting up a plant? You’ll need:
- Factory license
- Fire NOC
- Pollution board approval
- Land clearance
- GST registration
…and at every step, there are delays and demands for “chai-paani.”
So yes, India needs innovation, but it also needs an environment where innovation can thrive.
Voices from the Startup World
Not everyone is happy with Goyal’s statements:
- Zepto’s CEO responded, saying their company created 1.5 lakh jobs and paid over 1000 crore in taxes.
- Ola’s Bhavish Aggarwal, on the other hand, supported Goyal, acknowledging the need for deeper innovation.
Influencer Culture – Skill vs Sensationalism
Mr. Goyal also took a jab at India’s influencer ecosystem — filled with drama, fights, and vulgarity. Meanwhile, real knowledge-based content creators struggle to get noticed. Compare that to China, where influencers are teaching tech, coding, and promoting AI-driven innovation.
What Needs to Change?
- Support Deep Tech Startups – Create policies and incentives for innovation in AI, robotics, biotech, etc.
- Ease of Doing Business – Cut down on bureaucracy and corruption.
- Curb Gambling Culture – Regulate or limit fantasy apps.
- Encourage Skill-Based Influencers – Promote educational and value-based digital content.
- Startup Mentorship & Ecosystem Support – Encourage risk-taking and long-term vision.
