Deeptech To Get Substantial Allocation In INR 10K Cr FoF For Startups: Piyush Goyal

Commerce minister Piyush Goyal has said that the government plans to allocate a substantial portion of the INR 10,000 Cr fund of funds (FoF) for startups for the deeptech sector. 

Speaking at the Startup Mahakumbh, Goyal said that the allocation will mobilise “patient capital” for research-oriented startups. This, the minister said, would foster the development of cutting-edge technologies in emerging areas such as AI, quantum computing and robotics. 

“We on our part, through the new fund of funds of INR 10,00 Cr, will give a substantial allocation for deeptech… This will mobilise patient capital for R&D focus on startups. Our aim will be to foster the development of cutting-edge technologies such as AI, robotics, quantum computing, machine learning, precision manufacturing, biotech and the likes,” said Goyal.

It is pertinent to note that finance minister Nirmala Sitharaman, in this year’s Budget, proposed setting up a new FoF for startups with a corpus of INR 10,000 Cr. 

Meanwhile, Goyal also announced that a new dedicated helpline would be set up for startups. 

“I am going to start a new desk within Startup India in my ministry which will be a helpline for any startup anywhere in the country. If you face any problems with government officials, have a suggestion for regulatory reform, call that helpline. If somebody has developed a tool, which is not covered by current laws, that may need a rethinking of existing regulatory frameworks, reach out to us on the helpline,” the minister said. 

Goyal’s Comments Cook Up A Storm

The announcements come barely a day after Goyal’s comments on the first day of the Startup Mahakumbh 2025 stirred up a storm. At the event, the minister gave a “reality check” to Indian startups and urged the founders to shift their focus from grocery delivery and ice cream making to high-tech sectors like semiconductors, machine learning, robotics, and artificial intelligence. 

Noting that the “numbers” in the Indian deeptech sector were “disturbing”, Goyal questioned if the founders were looking at merely dukaandari (shopkeeping, which may “create wealth in the short-term”) or trying to compete globally with our innovations. . 

He also lashed out at Indian foodtech startups for turning unemployed youth into cheap labour. 

“Are we going to be happy being delivery boys and girls… Is that the destiny of India…this is not a startup, this is entrepreneurship… What the other side is doing — robotics, machine learning, 3D manufacturing and next generation factories,” Goyal said, referring to China. 

While many welcomed the comments and offered suggestions, the remarks also received criticism from founders and investors. 

Defending Indian consumer startups, Zepto cofounder and CEO Aadit Palicha said that his quick commerce startup provides livelihoods to nearly 1.5 Lakh people, contributes over INR 1,000 Cr in taxes annually, and has brought in over a billion dollars in FDI.

Palicha also attributed the lack of a large-scale indigenous foundational AI model to the “fact that India has not yet built great internet companies”. 

Meanwhile, former Infosys CFO and Aarin Capital chairman TV Mohandas Pai criticised Goyal’s comments and said that comparisons with Chinese startups are unfair. He added that India also has strong players in the deeptech sector, although their number is smaller compared to some other countries.