India’s booming startup ecosystem came under scrutiny at the Startup Mahakumbh event, where Union Commerce Minister Piyush Goyal questioned whether entrepreneurs were prioritizing convenience over innovation. He urged startup founders to look beyond food delivery and fantasy sports apps.
“Are we just going to be delivery boys and girls?” Goyal asked, highlighting how India remains focused on digital storefronts, while countries like China advance in deep-tech, cloud computing, EVs, drones, automation, semiconductors, and AI.
With over 157,000 recognized startups, he cautioned that India risks celebrating scale without substance. He encouraged entrepreneurs to shift from transactional businesses to transformational technology that drives real innovation.
While Goyal stressed that Indian startups must aim higher, innovate deeper, and create a lasting impact, a 2016 survey by the IBM Institute for Business Value and Oxford Economics found that nearly 90% of startups fail within the first five years. The research highlights six major roadblocks hindering startup success:
Poor Business Ethics (64%)
Weak Leadership & Inexperience (53%)
The survey included 600 startup entrepreneurs, 100 venture capitalists, 100 government leaders, 500 leaders of established companies, and 22 educational institution leaders.
Some key findings revealed that:
76% of Indian executives cited economic openness as a major advantage.
60% highlighted India’s skilled workforce as a key asset.
The same report also highlighted that the number of new company registrations surged from 15,000 in the 1980s to 100,000 in the 2010s. With an average entrepreneur age of 28, India boasts one of the youngest startup communities globally.
Meanwhile, Goyal, also criticized the rise of gig economy jobs, arguing that they turn young Indians into low-paid workers catering to the elite. Additionally, he flagged India’s lack of deep-tech startups—just 1,000 in the sector—as a major concern.
