Goyal's comments have sparked backlash from entrepreneurs, who argue that cumbersome regulatory processes and rigid taxation stifle innovation and growth.

Startups must navigate long and uncertain development timelines while ensuring their businesses remain viable and self-sustaining, which adds to the challenges they face.

India's commerce and industry minister, Piyush Goyal, has expressed concern over the focus of Indian startups on consumer-facing businesses, urging them to pivot towards deep-tech sectors such as AI, semiconductor design, and electric vehicles, which are crucial for addressing national challenges.

Startups in India encounter numerous obstacles, including regulatory and bureaucratic hurdles, with a significant issue being the inadequate investment in research and development (R&D).

Platforms that showcase deep-tech innovations can help emerging industries gain visibility, attract funding, and build investor trust, which is critical for sectors requiring significant capital and time for development.

The obsession with cash burn in the startup ecosystem has led to inflated valuations and unsustainable business models, with little emphasis on achieving profitability.

The risk-taking culture in India is limited, making it difficult for many entrepreneurs to secure funding after failures, while the venture capital landscape remains heavily reliant on foreign investment, particularly from the United States.

Most risk capital in India's startup ecosystem comes from overseas investors, highlighting a reliance on foreign funding for driving innovation.

The low investment in R&D is attributed to failures in both corporate and government sectors, as evidenced by the fact that a single corporation like Amazon invests more in R&D than the total public and private sector spending in India.

Data indicates a decline in venture capital funding for deep tech, with only 9% of total VC investments in 2025 allocated to these ventures, down from 11% in 2023.

For Indian startups to thrive in hard tech, a diverse talent pool is essential, but this is hindered by a lack of scientific promotion and evidence-based attitudes in politics.

Critics, including political figures, argue that the government's blending of mythology with science undermines progress and scientific inquiry, further complicating the innovation landscape.