Union minister Piyush Goyal's remarks at Startup Mahakumbh left Indian entrepreneurs stunned. Goyal questioned their innovation, pointing out that many build on existing infrastructure – food delivery, ride-hailing, and edtech – without creating new technology. While his critique holds merit, it overlooks systemic issues: red tape, low R&D investment, and a lack of government support. 

In this episode of Let Me Explain, Pooja Prasanna highlights the disparity in the Indian startup ecosystem as compared to China – massive public investment, fewer regulatory hurdles, and a culture that nurtures bold bets. In contrast, Indian startups face bureaucratic barriers, making risk-taking unviable. Critics like Mohandas Pai and founders argue that real innovation needs patient capital and policy support, not public shaming. Despite challenges, India’s deep-tech sector is growing, with 4,000 startups and rising investment. 

Watch.