Speaking at the second edition of the Startup-Mahakumbh, Commerce Minister Piyush Goyal on Thursday shared a striking contrast between the innovation trajectories of Indian and Chinese startups. Highlighting the opposing approaches between the two Asian giants, the blasting comments triggered a sense of concern at the opening ceremony of the event. Where one is focussed on providing convenience at the cost of cheap labour reinforcing global trade norms, the other is investing in innovative mobility and artificial intelligence.
Sharing a slide titled ‘India vs. China: The Startup Reality Check,’ during his address, Goyal highlighted that while Indian startups are playing a pivotal role in the digital economy with business ideas around food delivery, instant grocery delivery, and influencer-driven social media platforms, Chinese startups are making strides in global fields such as electric vehicle (EV) technology, semiconductor development, robotics, automation, and more.
Expressing his apprehension on the approach of Indian startups in comparison to Chinese startups’, Goyal said, “This disturbed me a lot. We have to be willing to evolve, learn, and aspire to be bigger and better. We shouldn’t shy away from competition. Today, India is the world’s third-largest startup ecosystem, but we should strive to become the largest.”
The minister, hailing the success of Indian startups in food delivery and quick commerce sectors, indicated that these ventures may not match the global impact made by Chinese startups.
“We are focused on food delivery apps turning unemployed youth into cheap labor so the rich can get their meals without moving out of their house. And what does a Chinese startup do? They work on developing electric mobility battery technologies and they are today dominating the electric mobility ecosystem. We are very proud of what India has done but are we the best in the world as yet? Not yet,” Goyal noted.
Citing the success of Indian ventures engaged in fancy ice cream and cookie businesses, Goyal questioned whether these enterprises align with India’s long-term goals.
“I have no complaint against them but is that the destiny of India? Is India’s future satisfied? China, on the other hand, is developing semiconductor and investing heavily in AI models which will prepare the nation for the future. So, what does India wants to make? Ice cream or semiconductor chips?”
Goyal called on the next generation of entrepreneurs to build businesses with a global impact. “Dukhandari ka hi kaam karna hai ya vishwavyapi aur international scale par Bharat ki pehchaan banani hai? That my friends is the choice before us.”
The minister’s comments reflected the need for Indian startups to diversify beyond consumer convenience apps to develop technologies that solve world challenges and boost the country’s economic goals.
“We may do all sorts of international trade agreements (with top countries) and have ambitions to compete with the best in the world, but I can’t take grocery stores to them and say this is India’s offering for startups,” said Goyal.