Piyush Goyal Slams Indian Startups' Focus On Gig Economy, Urges Shift Towards Deep-Tech And Innovation

Union Commerce Minister Piyush Goyal sharply criticised India’s startup ecosystem for being too focused on food delivery, betting, and fantasy sports apps.

He contrasted this with startups in China, which he said are advancing in areas like EVs, battery technology, semiconductors, and artificial intelligence.

At the Startup Maha Kumbh on Thursday (3 April), Goyal questioned whether India was settling for low-wage gig jobs instead of aiming for technological progress, India Today reported.

"Do we have to make ice cream or chips? Dukaandari hi karna hai (Do we want to just sell things)," he asked.

According to government data, India is the third-largest startup hub, with over 100 unicorns.

A total of 1.57 lakh startups are officially recognised in the country.

Goyal urged startups to reconsider their goals.

“Are we going to be happy being delivery boys and girls? Is that the destiny of India... this is not startup, this is entrepreneurship,” he said.

He compared India’s startup scene to China’s, saying the latter is leading in AI and advanced tech.

According to him, Indian startups need a reality check.

"What are India's startups of today? We are focused on food delivery apps, turning unemployed youths into cheap labour so the rich can get their meals without moving out of their house," Goyal said.

Calling for a focus on innovation beyond e-commerce, Goyal pointed out that there were only a limited number of deep-tech startups in India.

"Only 1,000 startups in India's deep-tech space is a disturbing situation," he said.

Goyal said new startups must help build India’s future.

“I feel sad when I come to know that for Rs 25 lakh or Rs 50 lakh, a bright idea of a young start-up got sold to a foreign company,” he added.

Also Read: After Lok Sabha Passage, Waqf Amendment Bill Sails Through Rajya Sabha Amid Opposition Rifts—What You Need To Know