India's Startup Ecosystem Needs a Deep Tech Compass

Commerce and industry minister Piyush Goyal's recent remarks at the Startup Mahakumbh offer a timely and necessary critique of India's startup ecosystem.

- Rohit Kumar Singh

Commerce and industry minister Piyush Goyal's recent remarks at the Startup Mahakumbh offer a timely and necessary critique of India's startup ecosystem. While acknowledging and applauding the remarkable growth and innovation within the sector, Goyal urged startups to shift their focus from low-value ventures like food delivery and hyper-fast logistics to high-impact sectors such as semiconductors, robotics, and deep-tech.

This call for introspection is not only valid but essential for ensuring the long-term sustainability and global competitiveness of India's entrepreneurial landscape. India's startup ecosystem has undeniably achieved significant milestones. In 2025, startups raised $2.5 billion in Q1 alone, marking an 8.7% increase from the previous year. The country ranks third globally in terms of startup funding, trailing only behind the US and the UK. Additionally, initial public offering (IPO) activity has surged, with 23 startups preparing for public listings this year, demonstrating investor confidence in Indian innovation.

Moreover, Tier 2 and Tier 3 cities are emerging as hubs of entrepreneurship, addressing local challenges in agriculture, health care, and education. This decentralisation is a promising trend that underscores the inclusivity of the ecosystem.