1 week Ago
While the world is changing fast, Indian bureaucrats are failing to keep up with the times. They must realise that India has a narrow window of opportunity, and that if they do not mend their ways, the country’s growth story will plateau before it really..
. Read More The Samudra Manthan yielded many products, among them – the elixir of eternal life ( amrita ) and poison ( halahala ). Over the past week, India has witnessed a similar manthan, albeit not in the ocean .
Are startups putting their best foot forward, or are they merely targeting low-hanging fruits? Commerce Minister Piyush Goyal gave Indian startups a reality check, comparing their operational areas to those of Chinese startups. The difference was stark and for all to see. If China is focusing on high-tech research, India’s startups are predominantly trying to outdo each other in salesmanship.
While China is pouring billions into hard tech R&D, many Indian startups remain fixated on faster deliveries and better cashback offers. That makes you a business and an entrepreneur, but not a startup in the truest sense of the word, especially not in the world that is now taking shape. Many startup founders have taken offence at Piyush Goyal’s remarks.
The minister’s statements have been misconstrued as an indictment of Indian business owners, or startup founders, as they like to be called. What many of these founders do not appreciate is the frankness of the government in giving them a much-needed and timely reality check. Donald Trump has turned global trade on its head.
The world economy faces uncertainties it has not seen in decades. The US and China’s power competition is heating up, and the world order is changing. In this context, India has a limited window of opportunity to strike gold.
We have the potential and scale to benefit from supply chains shifting away from China. What we do not appear to have is a candid exchange of views between the government and businesses, especially startups. Piyush Goyal’s remarks at the Startup Mahakumbh last week, however, signal the beginning of a new era in India’s growth story.
The government has shown its willingness to share candid views with business owners, while also being receptive to the feedback that comes in as a natural consequence of such debates. Unfortunately, many founders do not appreciate this spirit. It’s unrealistic to expect a government deeply invested in the startup ecosystem to only offer praise and not a reality check when needed.
Some founders, like Aman Gupta of Shark Tank fame, have appreciated Piyush Goyal’s candour. In an X post, Gupta said, “It’s not every day that the government asks founders to dream bigger. But at Startup Mahakumbh, that’s exactly what happened.
He believes in us. His point was simple: India has come far, but to lead the world..
.we need to aim higher." Candour, however, is a two-way street.
After all, Piyush Goyal’s remarks stirred an intense debate on social media. While social media was predictably flooded with knee-jerk reactions, there were several founders sharing their genuine angst – and India must not just take their concerns seriously, but address them as soon as possible. For example, a founder from Madhya Pradesh penned his thoughts on social media and called the government’s attention to the challenges still faced by Indian startups.
Many others have pointed out similar challenges, and the larger theme that has emerged out of this conversation is this: Indian bureaucrats are making life hell for many startups. Needless to say, the last thing India needs is its bureaucracy sabotaging our growth story. Red tapism is the enemy of innovation.
The babu- psyche of Indian bureaucrats is perhaps the biggest hurdle most founders have to navigate their way around. While the world is changing fast, Indian bureaucrats are failing to keep up with the times. They must realise that India has a narrow window of opportunity, and that if they do not mend their ways, the country’s growth story will plateau before it really takes off.
Here, the government must take the initiative to drive a simple message across the bureaucracy’s rank and file – get out of the way, make life easier for startups and play the role of a facilitator instead of an inhibitor. Having said that, the onus still lies on startup founders. They must stop capitalising on low-hanging fruits, dream big and think smart.
India’s focus needs to turn from inward-facing, consumption-driven startups to those that invest in deep tech research and development, and creating intellectual property with global applications. The ambition should be to build companies that are not just unicorns in valuation but pioneers in innovation, capable of competing on the world stage and contributing significantly to India’s strategic autonomy and economic resilience. This requires a fundamental shift in mindset – moving beyond optimising logistics for groceries to tackling challenges in areas like artificial intelligence, semiconductors, biotechnology, advanced materials, and renewable energy.
It demands patient capital, a higher tolerance for failure, and a long-term vision that transcends quarterly targets. While China is investing heavily in new and emerging technologies that will shape the planet’s future, India’s founders are focusing on domestic consumption through quick commerce. For instance, Huawei shocked the world in 2023 by unveiling its Mate 60 Pro smartphone, powered by a domestically developed 7nm chip despite US sanctions—an indication of China’s determined push toward semiconductor self-reliance.
Simultaneously, China is pouring billions into artificial intelligence, quantum computing, and biotechnology through state-backed initiatives like the “Made in China 2025" and “China Standards 2035" plans, positioning itself as a technological superpower of the future. That being said, India isn’t without its deep-tech torchbearers. Bengaluru-based Agnikul Cosmos is building modular, 3D-printed rockets designed to launch small satellites with unprecedented flexibility—showcasing innovation in both design and manufacturing.
Another standout is SankhyaSutra Labs, which develops high-fidelity physics-based simulation software, critical for aerospace, defence, and industrial R&D. Then there’s Digantara, also based in Bengaluru, which is working on real-time space situational awareness—an increasingly vital capability as Earth’s lower orbit becomes crowded with satellites and debris. These ventures represent the kind of moonshot thinking India needs more of: solving hard problems, building IP, and carving out a presence in frontier tech domains.
The government’s role, catalysed by candid conversations like the one initiated by Goyal, must be to create an enabling environment. This means actively dismantling bureaucratic obstacles, providing targeted support for R&D, fostering university-industry collaboration, and ensuring policy stability. If startups are expected to aim higher, the system must provide a launchpad, not an obstacle course.
Piyush Goyal’s remarks, while sparking controversy, are proving instrumental in achieving a crucial objective: initiating an overdue, frank conversation between the government and India’s startup founders. This candid exchange – where ministerial critiques meet founder frustrations about administrative obstacles – is precisely the kind of dialogue needed. It moves beyond mutual platitudes to identify real friction points.
Therefore, this ongoing ‘ manthan ‘ of views, highlighting both the need for higher ambition and the systemic impediments to it, should be embraced by all stakeholders not as conflict, but as a healthy, necessary step towards building a genuinely supportive and globally competitive innovation ecosystem in India. This open feedback loop, where businesses can publicly air grievances and provide critical input to policymakers, is a testament to the strength of India’s democratic framework – a stark contrast to countries like China, where such direct public critique and dialogue between the state and private enterprise is far less common and usually invites the Communist regime’s wrath. Debate and discourse are India’s inherent strengths, which is why Piyush Goyal’s remarks and startup founders’ grievances must be taken in stride by all stakeholders.
India has the brainpower, the ambition, and a government willing to listen. Now, it needs startups bold enough to build what’s hard—and a system ready to back them. Views expressed in the above piece are personal and solely those of the author.
They do not necessarily reflect News18’s views..
