India’s Startup Landscape: Focus on Innovation and Growth

India’s Startup Landscape is shifting, as expressed by Union Commerce Minister Piyush Goyal during the Startup Mahakumbh 2025 event in Delhi. He provocatively challenged the prevailing startup model, asking whether India should continue focusing on hyper-delivery apps and gambling platforms while its rivals in China make significant progress in artificial intelligence, electric vehicles, and semiconductors. This initiates a critical discussion on the balance between aspiration and accessibility, as well as the need to create jobs today while dreaming of a broader vision.

Goyal’s cutting question—“Should we make ice cream (delivery apps) or make chips (semiconductors)?”—resonated deeply. He highlighted the dangers of an excessive focus on comfort-driven services, questioning, “Are we proud of producing delivery personnel?” Leveraging India’s strengths in science, technology, engineering, and mathematics (STEM), he advocated for a shift towards genuine economic productivity.

A Call for Change in India’s Startup Approach

Harsh Goenka, Chairman of RPG Enterprises, supported Goyal’s message by providing context. He noted, “When Murthy and Subrahmanyan referred to 70-90 hour work weeks and Piyush Goyal critiqued startups focusing on vegan ice creams and rapid deliveries, they were speaking not literally but rather in a guiding manner.” He emphasised the need to transform the national mindset from prioritising ease to emphasising effort and from seeking quick achievements to pursuing long-term value.

Addressing the Concerns of India’s Startup Ecosystem

Alongside his critique of delivery apps, Goyal also targeted online betting applications, many of which are facing scrutiny for suspected money laundering activities. He urged startups to avoid pursuing ephemeral trends and to concentrate on developing sectors that can truly drive substantial progress.

However, reactions were mixed. Social media users expressed what they perceived as a disparity between governmental discourse and actual circumstances. One user commented on the government’s apparent endorsement of a culture based on freebies, stating, “The least the startups do is generate jobs for millions.”

Another individual rallied against the notion of top-down reform: “It is simple to criticise others. We need to address brain drain, implement fair reservations, enhance infrastructure, and improve investment and educational policies. Simplifying processes is essential.”

Some voices highlighted more profound systemic challenges. One commented, “Our progress in technological innovation is severely lacking,” advocating for a substantial enhancement of India’s educational framework. Another recognised the importance of a balanced approach, remarking, “While we strive for deep technology, we must also support delivery apps and eCommerce, which have created over one million jobs.”

In a concise encapsulation of the discussion, one user articulated, “Think big or remain small. While ice cream and swift services may boost valuations, they lack substance. True value is found in transformative technology.”