In the recent bold and blunt speech at Startup Mahakumbh, Union Minister of Industry and Supply, Minister Piyush Goyal didn’t hold back. He said what many in India’s startup ecosystem didn’t want to hear: Bharat is lagging. While China pushes the boundaries of AI and product innovation, India is still stuck in the service-first mindset. The Minister used China’s low-cost AI startup DeepSeek as a wake-up slap. His message? India needs to dream bigger and build smarter.
From Coders to Creators: Why Indian Startups Must Shift Gears
Minister Piyush Goyal emphasized a critical gap in Indian startups and their working. He said they are still functioning as code factories, not innovation hubs. The world is advancing in frontier technologies like quantum computing, AI, and robotics. However, Indian founders are busy repackaging Western ideas or building hyperlocal versions of apps that already exist.
He encouraged entrepreneurs to think beyond software services and look towards hardware, deep tech, semiconductor design, and intellectual property creation.
Indian Startups must begin to build core technologies and globally competitive products that solve major challenges. He did not spare the Food Tech that use big labels like Vegan, Gluten-Free, etc. to run cookies and ice-cream counter while exploiting the unemployed youth by enegaing them as servers or delivery agents. The “service” model might have built a strong base, but it won’t take Bharat to the next level.
China’s DeepSeek Built AI With $6 Million. What’s Stopping India?
Minister Piyush Goyal’s mention of DeepSeek was both pointed and purposeful. The Chinese startup, with a team of just 50 people, trained a Large Language Model with 2 trillion tokens for under $6 million. That’s a fraction of the billions spent by OpenAI or Google. It shows that lean, focused teams with clarity of purpose can build world-class products. So why can’t India, with its army of engineers and tech institutes?
The answer lies in a lack of vision, risk-taking, and execution.
India often lacks long-term product thinking. Thus, Bharat’s startups chase valuations, not innovation. However, DeepSeek and other Chinese tech proved that money isn’t the barrier to innovation – mindset is.
Piyush Goyal And The $1.25 Billion Boost: India’s Own AI Mission Begins
In response to this stagnation, the Indian government launched the IndiaAI Mission. The IndiaAI Mission has a hefty $1.25 billion budget and it aims at fueling AI innovation. The plan includes:
- Creating quality datasets for AI model training
- Building Indigenous AI infrastructure
- Supporting AI startups and research labs
- Training 100,000+ engineers in AI and related fields
But Goyal was clear: no amount of government support can substitute for entrepreneurial courage. These funds are merely a push in the right direction. The leap must come from the startup community.
What’s Holding India Back? The Hard Truth
Piyush Goyal didn’t shy away from the tough reality. India’s startup ecosystem has become too comfortable with incremental innovation and venture capital safety nets. Too many are chasing quick exits. Others are quick to copy global trends rather than solve deep-rooted Indian or global problems.
Thus, he urged young founders to focus on deep research, strong teams, and long-term missions.
Success will come from building patents, not pivot decks. From developing home-grown tech, not TikTok clones. In essence, he was saying: Stop thinking like hustlers, start thinking like inventors.
India vs China: The Race is On — But Who’s Winning?
China has already taken bold strides. With a clear national AI strategy, deep investment in chip-making, and a strong academic-industrial complex, it’s marching ahead. The DeepSeek example is only one of many.
India, despite its digital infrastructure and tech talent, is yet to produce a truly global AI product or hardware breakthrough.
Bharat produces engineers for the world. Thus, it has the demographics. But not the discipline or daring – yet. Piyush Goyal’s speech was a stark reminder: Either we change course now or forever play second fiddle to China.
Piyush Goyal’s challenge is not just to the government or colleges – it’s a call to every startup founder in India. His message is simple:
- Think big: Don’t build for your lane, build for the world.
- Take risks: Deep tech means failure at first, but rewards in the long run.
- Build products: Don’t settle for services. Own the IP.
- Collaborate with academia: Don’t reinvent the wheel, strengthen it.
If Indian startups take this seriously, Bharat might not be left behind in the BigTech Race – instead India could lead. But only if Indian Startups start now.