"Fancy Ice Cream or Semiconductors?": Piyush Goyal's Challenge at Startup Mahakumbh 2025

Commerce Minister Piyush Goyal has raised concerns about the direction of India's startup ecosystem, challenging entrepreneurs to focus on deep tech innovation rather than convenience-based services that merely cater to urban elites. Speaking at Startup Mahakumbh 2025, Goyal drew stark comparisons between Indian startups focusing on food and grocery delivery and their Chinese counterparts developing advanced technologies in sectors like electric mobility.

"Beyond Delivery Boys and Girls"

In his candid address, Goyal questioned whether India's startup ambitions should be limited to creating "delivery boys and girls" or if the country should aim higher. He pointed out how Chinese startups are investing heavily in electric mobility and battery technologies, allowing them to dominate the global EV ecosystem.

"We are very proud of what India has done, but are we the best in the world as yet? Not yet," Goyal remarked. "Should we aspire to be, or are we going to be happy being delivery boys and girls?"

The minister's comments come at a time when several Indian quick-commerce and food delivery startups have achieved unicorn status and multi-billion-dollar valuations, but questions remain about their long-term impact on the economy and job creation.

Luxury Products vs. Deep Tech

Goyal specifically highlighted how some startups founded by children of billionaires focus on luxury food items like "fancy ice creams and cookies." While not dismissing their success, he questioned whether such ventures represent India's technological destiny.

"I have no complaint against that, but is that the destiny of India—healthy ice cream, zero gluten-free, whatever, vegan?" he asked, contrasting this with how other countries are focusing on semiconductors and artificial intelligence to become self-reliant.

The minister emphasized that nations leading in innovation are "building chips and AI models which will prepare the nation for the future," suggesting Indian entrepreneurs should consider similar future-focused initiatives rather than convenience services.

Concerns About Foreign Investment

Addressing the quick commerce boom, Goyal noted that while he had no objections to these businesses listing at billion-dollar valuations, he wished they had more Indian investors rather than relying heavily on foreign capital.

"I only wish they had more Indian investors rather than foreigners buying off all our startups," he said, adding that India needs more domestic investors participating in the startup ecosystem.

He contrasted the focus on "hyper-fast logistics" with international competitors investing in "robotics, automation, machine learning" and preparing for advanced manufacturing technologies that help them compete globally.

Call for Global Ambition

Describing the startup founders as "sculptors of New India," Goyal urged them to help achieve the vision of Viksit Bharat 2047 by thinking bigger and more ambitiously.

"We'll need to go global, we'll need to think big, we'll need to be ambitious, we'll need to experiment, we'll need to go beyond the boundaries of our own thinking," he emphasized.

Goyal expressed concern that India has only about 1,000 startups in the deep tech ecosystem, calling it a "disturbing sign" despite the short-term wealth creation from convenience-focused businesses.

Under Prime Minister Narendra Modi's leadership, Goyal noted that India is not aiming small with international trade agreements but is instead pursuing deals with developed economies like Australia, the EU, and the United States.

"Our ambitions are to compete with the best in the world," Goyal concluded, challenging startups to elevate their vision and contribute more meaningfully to India's technological advancement on the global stage.