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Minister Piyush Goyal Criticizes Startup Focus on Gig Economy
At the Startup Mahakumbh 2025 event in New Delhi, Commerce Minister Piyush Goyal raised concerns over the direction of India’s startup ecosystem. He questioned whether the country is satisfied with creating low-paying gig economy jobs, such as food delivery, while nations like China are aggressively advancing in deep-tech sectors.
Referring to the dominance of food delivery platforms in the startup space, Goyal remarked that unemployed youth are being turned into delivery agents for the rich. He contrasted this with the focus of Chinese startups on innovations like electric mobility and battery technologies, which are paving the way for global leadership in critical industries.
Call for Deep-Tech Innovation
Goyal urged the Indian startup community to look beyond short-term, service-driven business models. He emphasized the urgent need to promote deep-tech ventures that can position India as a significant global innovator. Highlighting that India has only around 1,000 startups in deep-tech, he called the number “disturbing” for a country of its scale and talent.
He stressed that India must move past an obsession with food delivery and e-commerce and aim for transformational technologies that can solve complex problems and make the nation a global tech powerhouse.
Criticism of Premium Lifestyle Startups
The minister also criticized a growing trend among affluent entrepreneurs launching lifestyle brands that are marketed as startups. He pointed out that ventures built around luxury products like gourmet cookies and boutique ice creams are not contributing meaningfully to innovation. While he acknowledged the entrepreneurial spirit behind such businesses, he made it clear that these cannot be held up as examples of the kind of startups India needs to back on a national scale.
Shaping the Future of India’s Startup Landscape
Goyal’s comments have reignited debate over the current priorities within India’s booming startup ecosystem. His remarks serve as a call to action for entrepreneurs, investors, and policymakers to shift their focus toward sectors that foster advanced research and scalable innovation.
As India aspires to become a global technology leader, the minister’s message underscores the importance of aligning entrepreneurial efforts with national objectives of long-term economic growth, technological independence, and sustainable employment generation.
