BBC News, Mumbai
The recent comments from the Minister of Commerce of India, Piyush Goyal, on the country’s start -up ecosystem, have sparked a massive debate on social networks and caused strong reactions of certain entrepreneurs.
During the second edition of the startup Mahakumbh, a conclave of start-ups led by the government last week, Goyal seemed to carefully examine the start-ups of India consumers when he urged entrepreneurs to explore more technological innovations to help the country to progress.
Mocking the rise of food delivery applications, craft brands and online Paris applications in the country, he compared them with the innovations made by “the other side”, which took care of China.
He said that while “they” leaps in automatic learning, robotics and construction “of new generation factories that can compete with the rest of the world”, India start-ups were still largely focused on lifestyle products like gluten-free ice cream.
His comments sparked a wave of reactions from the best innovators in India, some arguing that he encouraged creators to be more ambitious and others calling him an unjust criticism of the start -up ecosystem, a major contributor to the country’s economy.
Admittedly, Goyal also praised the pace to which new companies appeared in the country, welcoming India as the third starting ecosystem in the world. He also urged Indian investors to do more to support Indian creators.
But he seemed to want to see more happening, and faster.
“We must be ready to evolve and learn. [If] We want to be older and better, so we have to be more daring and we must not fight unless the competition said, the minister said.
At one point, he asked the public – overflowing with entrepreneurs and investors – “we want to make ice cream or [semiconductor] fleas? “
Aadit Palicha, co-founder of the Zepto fast trade application, was quick to call the minister.
In an article on X, he argued that it was consumer internet companies like his who led innovation in technological space, in India and in the world.
He stressed that Amazon – originally an internet company for the general public – had set up the Cloud Computing while the great actors of AI today, like Facebook and Google, were also consumer internet companies.
He urged Indian investors to support consumer internet companies so that they can increase and use their profits to make more ambitious innovations.
Mohandas Pai, an eminent providential investor, told News Channel Economic Times now that there was a capital investment shortage in start-ups in deep government technology and private actors.
He explained that investors went to start-ups focused on the lifestyle because they have given fast feedback.
Innovations in deep technology take a long time to develop and require costly infrastructure. “People are not willing to take long -term risks. We need long -term” patient “money [for deep tech start-ups to thrive]”He said.
He also said that the regulatory limits on foreign investments in Indian start-ups derive innovation.
“Start-ups of deep technology also find it difficult to find a market,” he added, citing the example of an Indian company that recently launched a fast dependent battery for buses but has found no lessee for its product.
Many social media users have also talked about the challenges they faced when they tried to start their own technological business.
Some said they had trouble obtaining loans, others have highlighted high import taxes on certain raw materials and foreign equipment, while others have spoken of unnecessary administrative formalities that have obtained documents and approval a nightmare.
But some entrepreneurs also defended the minister, saying that his comments were well intentioned and a verification of reality well necessary for the start -up ecosystem.
Vironika S, founder of the Edtech Proxy Gyan application, agreed that the future leadership of the world economy of India depended on the breakthroughs in AI and semiconductors, but added that there were realistic obstacles to do so and that the government could help them supporting them.
Indian investor Kushal Bhagia said in an article on X that Goyal was right about the ambition and the lack of deep technological start-ups in India. “We simply do not meet enough founders who do something really deep or who seeks great declarations of ambitious problems,” he said.
He attributed this to the technological talent of India leaving the country to work in American companies and a shortage of founders of deep technology so that people learn and inspire.
The Minister’s comments also made the media analyze different trips of Indian and Chinese start-ups.
Journalist Abhijeet Kumar wrote In the newspaper of commercial standards which, in 2023, only 5% of the financing of the Indian start-up entered sectors of deep technology, against 35% in China. He also underlined how Beijing actively promoted high -tech innovation – in 2024, he had reduced $ 361 billion in taxes and fees for high -tech companies, including $ 80.7 billion in research and development deductions.
In a editorial Published on Monday, the newspaper also noted that India start-ups are more consumer-oriented, focused on the use of technology to solve local problems on a large scale rather than creating revolutionary fundamental models.
He underlined that India currently had 4,000 start-ups in deep technology and that this number was to increase to 10,000 by 2030 and cited a report by Nasscom which indicated that the start of technology in India attracted funding of $ 1.6 billion in 2024, marking an increase of 78% of one year on the other.
But there is still a long way to go.
“While the breed of deep technology is intensifying on a global scale, it is clear that India will have to do a lot to make up for these countries,” said the editorial, adding that Goyal’s comments should “serve as an appeal to action” for start-ups and investors as well as for the government.
“This can include the creation of innovation funds in depth, the creation of solid university bridges and offering incentives for faster developments in equipment, AI, biotechnology and clean energy,” he said.
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