India Minister Urges Startups to Shift Focus from Low-Tech to Deep-Tech Like China
On April 4, Indian Commerce Minister Piyush Goyal urged startups to pivot from low-skill consumer services to deep-tech innovation reminiscent of China's achievements, sparking backlash from industry leaders.
Published on April 5, 2025
Indian Commerce Minister Piyush Goyal sparked controversy on April 4 when he urged startups to move away from quick-commerce services like food and grocery delivery, and instead emulate China's focus on high-end, deep-tech innovation. Speaking at a startup event in New Delhi, Goyal used a presentation slide titled 'India vs. China. The Startup Reality Check' to emphasize China's strides in electric mobility, battery technology, robotics, and 3D manufacturing.
His remarks, which were widely interpreted as a criticism of consumer tech companies such as Zomato, Swiggy, and Zepto, drew a strong backlash from investors and startup founders. Critics argued that the government had not yet provided sufficient infrastructure or support to foster deep-tech innovation, even as Indian startups secured $11.3 billion in venture capital in 2024, marking a 43% rise from the previous year.