India’s startup scene stands at a critical crossroads. On April 3, 2025, during the opening of Startup Mahakumbh 2025 in New Delhi, Union Minister Piyush Goyal delivered a passionate and thought-provoking speech that stirred strong reactions across the entrepreneurial community. He addressed a fundamental issue plaguing the country’s innovation ecosystem—the overemphasis on gig economy startups and the underinvestment in deep technology and research-based innovation.
Instead of sugar-coating his message, Goyal asked a powerful question:
“Are we going to be happy being delivery boys and girls for the rest of our lives?”
This wasn’t a jab at the gig workers themselves, but a critique of how India’s startup visionaries often default to low-risk, service-based platforms instead of investing in core innovation. His words hit a nerve and sparked debates among startup founders, investors, and policymakers.
Gig Economy vs Deep-Tech: Understanding the Landscape
India’s gig economy has flourished over the last decade. Startups like Zomato, Swiggy, Blinkit, Ola, and Urban Company have reshaped urban life. They’ve created millions of jobs and brought convenience to millions more. However, most of these platforms follow similar operational models—aggregating services and monetizing last-mile delivery. While this sector grows fast, it doesn’t always contribute to long-term innovation or India’s global tech leadership.
In contrast, deep-tech startups operate in fields like artificial intelligence, quantum computing, advanced materials, biotech, clean energy, and robotics. These ventures require significant R&D, long gestation periods, and often demand collaboration with academia and government institutions. Although risky and capital-intensive, these businesses push the boundaries of what’s possible and shape the future.
Goyal urged the ecosystem to channel more energy into these frontier areas. He asked founders to move beyond “me-too” models and invest in intellectual capital that solves critical problems across sectors like healthcare, climate change, space, and agriculture.
“We Need to Build, Not Just Deliver”
Minister Goyal’s speech underlined a growing concern in policy circles. India’s demographic dividend and digital adoption rate position it uniquely to lead the next wave of global innovation. But without substantial homegrown technological breakthroughs, the country risks remaining a backend service provider for the West.
He emphasized:
“We are a nation of creators, thinkers, and problem-solvers. Why are we so hesitant to build things that can shape the world?”
India’s startup landscape includes over 100 unicorns, but few operate in sectors that produce core intellectual property or require high R&D expenditure. Goyal challenged VCs and angel investors to back founders working on deep problems—even if returns come slower. He criticized the chase for short-term profitability over long-term transformation.
The Government’s Push for Innovation
To support this shift, the Indian government has launched several initiatives over the past two years:
- Startup India Deep Tech Fund: A ₹5,000 crore fund that focuses exclusively on deep-tech and IP-driven businesses.
- DPIIT’s Seed Fund Scheme: Grants up to ₹50 lakh per startup working in sectors like AI, robotics, and clean energy.
- Startup Mahakumbh: The event itself now includes a separate pavilion for research-heavy startups in defense tech, quantum computing, and agritech.
The government also partners with IITs, IISc, and DRDO to offer incubation support and mentorship to deep-tech entrepreneurs. Goyal emphasized these mechanisms and encouraged founders to access these resources instead of replicating quick-commerce or B2C apps.
What Founders and Investors Are Saying
Goyal’s comments drew mixed reactions. Some founders praised the Minister for voicing a long-ignored truth.
Richa Mishra, co-founder of a Bengaluru-based quantum startup, said:
“We’ve been bootstrapping for two years while delivery apps raise millions. It’s refreshing to hear a Minister ask the hard questions.”
Vikas Goel, partner at a top VC firm, offered a nuanced view:
“We agree with the need for deep-tech, but these ventures also carry higher risks. We need co-investment from the government to de-risk these startups.”
Meanwhile, others worried about the tone of Goyal’s comments. A startup founder from Gurugram said:
“We’re not ashamed of building delivery platforms. They solve real urban problems and create jobs. Innovation exists even in optimization.”
Clearly, the startup ecosystem must balance both—service innovation that scales quickly, and deep-tech work that builds a future-proof economy.
Learning from Global Examples
Countries like Israel, South Korea, and the U.S. have shown the importance of investing in R&D. Israel, despite its small size, leads in cybersecurity and defense startups. The U.S. channels massive public funding into university research and frontier tech through agencies like DARPA and NSF.
India must replicate this mindset. Startups can’t work in isolation—they need academia, government labs, and corporate collaboration to create disruptive technologies. India’s education system also needs reform to encourage scientific entrepreneurship.
What Needs to Change?
To foster more deep-tech ventures, India must act across several fronts:
- Funding Reforms
Private VCs often avoid high-risk R&D ventures. Government and sovereign funds must bridge this gap with blended capital. - Incubation Ecosystem
More Tier-1 universities must open deep-tech incubation labs and offer startup credits or research-to-commercialization programs. - IP and Patent Support
Startups working in emerging fields need faster, cheaper IP filing and stronger global protection mechanisms. - Global Talent Exchange
Bring Indian researchers working in foreign labs back with startup grants. Offer them stakes in deep-tech ventures. - Incentivize Corporate R&D
Offer tax benefits to corporates who fund or acquire deep-tech startups. Create an ecosystem where enterprises want to bet on new tech.
The Road Ahead
India’s tech ecosystem stands on solid ground. We boast talent, market size, digital infrastructure, and government support. But if startups focus only on delivery, logistics, and convenience apps, we’ll miss the chance to lead the next industrial revolution.
Piyush Goyal’s challenge to the startup community isn’t a criticism—it’s a wake-up call. He believes in the power of India’s youth to imagine, build, and lead in areas that matter globally. Whether the startup world answers that call remains to be seen.
Final Thoughts
Startups must rethink what “innovation” really means. Scaling a quick-delivery app may offer short-term growth, but inventing a climate-resilient material, a decentralized healthcare platform, or the next GPT model delivers legacy.
Minister Goyal didn’t belittle gig platforms—he asked us to aim higher. He asked Indian founders to lead, not follow. And that vision deserves action.