Union Minister Piyush Goyal Urges Indian Startups to Dream Bigger and Focus on Deeptech Innovations

Union Minister Piyush Goyal Urges Indian Startups to Dream Bigger and Focus on Deeptech Innovations

At the second edition of Startup Mahakumbh, India’s largest gathering of entrepreneurs, Union Minister Piyush Goyal called on Indian startups to look beyond the conventional and venture into ambitious deep-tech domains. With a rapidly evolving global startup ecosystem, Goyal’s speech came at a critical juncture for Indian innovation. He emphasized that it’s time for Indian startups to think globally and with a technology-driven focus. This call for a broader vision and deep-tech aspirations was punctuated with a direct challenge: Are Indian startups merely content with their current successes, or are they ready to compete with global giants in cutting-edge fields like robotics, electric vehicles (EV), and semiconductors?

The Call for Bigger Dreams

“Are we going to be happy being delivery boys and girls?” Goyal rhetorically asked, urging startups to evolve beyond the current dominant trends in quick commerce, influencer economies, and gaming. The Minister highlighted that these areas, although lucrative in the short run, should not be the final destination for Indian entrepreneurs. He expressed concern over the over-emphasis on business models that, while profitable, do not push the boundaries of technology and global competitiveness.

In his speech, Goyal drew a direct comparison between Indian startups and their Chinese counterparts, noting that many Chinese firms are advancing in the fields of electric vehicles, robotics, semiconductors, and deep technology. His point was that India has the potential to achieve much more by focusing on these high-tech domains that hold the promise of long-term sustainability and global relevance.

A Focus on Technology and Global Ambitions

One of the central themes of Goyal’s address was that India needs startups that aspire to tackle global challenges and innovate on a large scale. He said that to remain competitive and make a significant impact, Indian startups must evolve, constantly learn, and have the ambition to reach beyond the domestic market. These deep-tech sectors, according to Goyal, offer startups the chance to tap into industries that have the potential to reshape economies, societies, and industries worldwide.

While India has made substantial progress in areas like software development and digital services, Goyal suggested that the next wave of innovation needs to shift toward building technology that can stand up on the global stage. “We have to be willing to evolve. We have to be willing to learn. We have to aspire to be bigger and better,” he stated. Such an approach would encourage Indian startups to not just replicate success but create something truly transformative.

Criticism of Current Startups and Their Focus

In his address, Goyal didn’t hold back from criticizing the current focus of many new-age Indian startups, particularly those that focus on healthier alternatives for ready-to-eat food such as ice creams and cookies. While he acknowledged their entrepreneurial spirit, he argued that such ventures were more akin to small businesses than to the high-potential, globally competitive startups India needs. These businesses, he claimed, while valuable, don’t embody the deep-tech vision India should be aspiring to.

Furthermore, Goyal pointed out that although some startups have garnered significant investments and achieved quick success, their focus on hyper-fast logistics, especially in the grocery delivery space, might not be the most productive use of national resources. He compared this approach unfavorably to Chinese companies that are investing heavily in robotics and automation, which are setting the foundation for more efficient and scalable manufacturing processes.

“While wealth creation in the short run may happen with some of these conveniences, do we want to be just a shopkeeper, or do we want to create something at a global scale?” Goyal posed, urging Indian entrepreneurs to rethink their priorities and channel their energies into more ambitious technological endeavors.

The Need for More Deeptech Startups

Another critical aspect of Goyal’s speech was his call for more focus on deep-tech startups. He pointed out that India currently fosters fewer than 1,000 deep-tech startups, which he sees as a troubling sign for the country’s innovation ecosystem. While acknowledging the progress made by Indian entrepreneurs, he stressed that deep-tech areas such as AI, robotics, EV, and semiconductors are where the future of global competitiveness lies.

Deep-tech, by its very nature, is capital and resource-intensive. It requires a longer time horizon for returns, and Goyal urged investors and the government to support these ventures with the resources and infrastructure they need. His plea was for the Indian startup ecosystem to not only increase the number of such startups but also provide them with the necessary ecosystem to scale globally.

The Larger Vision: A Global Startup Ecosystem

One of the key takeaways from Goyal’s speech was the importance of thinking globally. He pointed out that many Indian startups limit themselves by focusing too much on domestic markets or by developing solutions that are not scalable on an international level. India, he argued, has the talent, the entrepreneurial spirit, and the resources to build companies that can compete with global players in technology and innovation.

Goyal urged startups to challenge their own limitations, to aspire to create technologies that could change the world, and to be bold enough to compete on the global stage. His call to action was not just to focus on making profits but to also build businesses that contribute to solving global challenges through innovation in technology.

Response from the Startup Community

While Goyal’s speech received applause from some sections of the startup community, it also sparked criticism. Some industry experts and entrepreneurs took to social media to express their concerns, particularly about the challenges posed by government policies. T.V. Mohandas Pai, a well-known entrepreneur and former Infosys board member, pointed out that despite the government’s call for innovation, some policies have not been conducive to the growth of startups.

Pai raised concerns over the angel tax, which has been a thorn in the side of many Indian entrepreneurs, discouraging angel investment. He also criticized the lack of investment from insurance companies and the challenges faced by overseas investors due to the Reserve Bank of India’s (RBI) foreign exchange rules. Such policy hurdles, according to Pai, need to be addressed to create a more enabling environment for startups to thrive.

A Future-Focused Approach

In conclusion, Union Minister Piyush Goyal’s message to Indian startups was clear: it’s time to aim higher, think bigger, and focus on creating deep-tech innovations that can make India a global leader in technology and entrepreneurship. While the current landscape may be dominated by delivery services and quick commerce, the true potential of Indian startups lies in their ability to evolve, challenge themselves, and innovate on the global stage.

Indian entrepreneurs have the opportunity to create something truly transformative—technology solutions that not only serve the domestic market but also have the power to reshape industries across the globe. To do so, however, they must take bold risks, invest in deep-tech innovation, and focus on building products that can stand up to international competition. The future of Indian startups rests on their ability to think globally and technologically, creating solutions that will define the next wave of innovation.

For India’s startup ecosystem to grow and thrive, it’s essential to move beyond short-term wins and towards developing cutting-edge technologies that address some of the world’s most pressing challenges. With the right vision, ambition, and support, Indian startups can take their place at the forefront of global innovation.

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This article offers a nuanced look at the direction Union Minister Piyush Goyal has suggested for Indian startups. By refocusing their efforts on deep-tech innovation and thinking beyond quick commerce, Indian entrepreneurs have the potential to reshape the future of technology on a global scale.