'Turning unemployed youth into cheap labour': Piyush Goyal’s wake-up call to startups, urges shift to deep-tech

Commerce and Industry Minister Piyush Goyal on Thursday urged Indian startups to shift their focus from food delivery and instant grocery services to cutting-edge technologies like semiconductors, artificial intelligence (AI), and electric mobility, drawing a sharp contrast with the innovation-driven approach of Chinese startups.

Speaking at second edition of the Startup Mahakumbh, Goyal highlighted the disparity between the two nations’ entrepreneurial ecosystems.

“What are Indian startups doing today? We are focused on food delivery apps, turning unemployed youth into cheap labour so the rich can get their meals without moving out of their houses. And against that, what does a Chinese startup do? Work on developing electric mobility, battery technologies. They are today dominating the electric mobility ecosystem,” he said.

While acknowledging India’s startup achievements, Goyal questioned whether the country should settle for being “delivery boys and girls” or aspire to global leadership. “We are very proud of what India has done. But are we the best in the world yet? Not yet. Should we aspire to be?” he asked.

The minister pointed to examples of so-called Indian startups producing “fancy ice creams and cookies” and “healthy, zero-gluten, vegan” products, often backed by billionaires’ children.

While recognising their entrepreneurial success, he argued that such ventures do not represent India’s ultimate destiny.

“Using these words and good packaging, we call ourselves startups. It’s not a startup—it’s entrepreneurship, it’s business,” he said.

Goyal also highlighted China’s focus on semiconductors, AI, robotics, automation, and machine learning, which are preparing the nation for next-generation manufacturing and global competitiveness.

“What’s India going to do? Make ice cream or chips?” he quipped, urging the startup community to prioritise deep-tech innovation over short-term wealth creation through convenience services.

He expressed concern over the limited number of deep-tech startups in India, noting that only about 1,000 companies operate in this space.

“It is a disturbing sign. Wealth creation in the short term may happen with some of these conveniences, but dukaandari ka hi kaam karna hai humein ya international scale ki pehchan banani hai (Are we only going to run small shops, or create an identity on the international stage)? That, friends, is the choice before us,” he said.

Goyal called for courage and ambition, encouraging startups to “think big,” experiment, and explore uncharted territories.

“We’ll need to go global, we’ll need to be ambitious, we’ll need to go beyond the boundaries of our own thinking. Let’s not limit ourselves with the past—let’s explore the unknown,” he added.

He assured that the government will handhold and support those who face challenges in their startup journey, encouraging them to persevere and try again.

The minister stressed the need for increasing domestic capital investments, stating that a strong foundation of indigenous investment is crucial to reducing dependency on foreign capital and ensuring long-term economic resilience.

Goyal emphasised on the need to attract more domestic investors to strengthen India's capital base and ensure self-reliance.