Piyush Goyal Seeks More Innovation From Indian Startups

With a thought-provoking speech that served as both an acknowledgement and a critique of India’s startup ecosystem, Union Minister Piyush Goyal held the mirror to India’s startup community at the Startup Mahakumbh event on Thursday in New Delhi.

While acknowledging India’s progress and development, Goyal urged entrepreneurs to rethink their focus and aspire to global prominence.

Drawing a stark comparison with China, he highlighted the need for Indian startups to prioritize innovation in deep-tech sectors like electric vehicles or EVs, battery technology and electric mobility systems.

“What are India’s 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 house. And against that what does a Chinese startup do? Work on developing electric mobility, battery technologies… and with that they’re today dominating the electric mobility ecosystem. We are very proud of what India has done. But are we the best in the world as yet? Not yet! Should we aspire to be… or are we going to be happy being delivery boys and girls?”, Goyal said in his address.

#PiyushGoyal compares Indian #startups to their Chinese counterparts, criticising Indian delivery apps for exploiting unemployed youth as cheap labour.

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Goyal’s sharp words and stark presentation drew much appreciation from the audience comprising top startup entrepreneurs and other participants in the Indian startup ecosystem.

He also said that the country, currently the world’s fifth-largest GDP, is on track to become the fourth-largest by the end of 2025 and the third-largest by 2027, surpassing Japan and Germany.

Goyal credited this growth to India’s robust startup ecosystem, rapid advancements in artificial intelligence, semiconductor manufacturing, and deep-tech innovations.

India vs. China: A Tale of Two Ecosystems

Goyal’s speech underscored the contrasting trajectories of Indian and Chinese startups.

While Indian startups have excelled in consumer-focused sectors like food delivery, instant grocery and quick commerce services, Chinese startups have made significant strides in deep-tech industries.

Companies like BYD, NIO and Xiaomi have positioned China as a global leader in EV technology, dominating markets with cutting-edge battery systems, autonomous driving capabilities, and scalable manufacturing.

Recently, BYD reported record annual revenue of around $107 billion, topping $100 billion for the first time and beating Tesla.

In contrast, India’s EV ecosystem is still in its nascent stages.

Despite the presence of promising startups like Ather Energy and Ola Electric, the sector lacks the scale and technological depth seen in China.

Goyal emphasized that India must move beyond convenience-driven businesses and invest in industries that drive long-term economic growth and global competitiveness.

The EV Opportunity

Electric mobility represents a critical opportunity for India to bridge the gap with China.

With government initiatives like FAME II and the National Electric Mobility Mission Plan, India has laid the groundwork for EV adoption.

China’s dominance in the EV sector is a mix of strategic investments in research and development, supported by robust government policies. Indian startups will have to adopt a similar approach to build a self-reliant and globally competitive EV ecosystem.

Minister’s Call to Action

Goyal’s speech is a wake-up call for India’s startup community.

While acknowledging India’s position as the world’s third-largest startup hub, Goyal urged entrepreneurs to think bigger and bolder.

By shifting their focus to high-impact sectors like EVs, robotics, and artificial intelligence, Indian startups can not only compete with global players but also contribute to the nation’s long-term economic resilience. As India aspires to become a global innovation hub, the message is clear: the time to act is now and think big.

The future of India’s startup ecosystem and its role in shaping India’s EV ecosystem and in turn the global EV landscape will depend on the choices made today and perhaps moving away from yet another startup launching a healthy ice cream, as Goyal mentioned in jest in his speech.

By Arrangement with Goelec.in