India's Commerce Minister Piyush Goyal has sparked controversy by questioning whether Indian start-ups should focus on semiconductor chips instead of gluten-free ice creams and food delivery apps.

Speaking at a start-up conference, he compared India's consumer internet boom unfavourably with China's advances in robotics and AI, urging entrepreneurs to pursue more ambitious tech innovations instead of safe lifestyle products.

While acknowledging the position of India as the world's third-largest start-up ecosystem, Goyal faced pushback from founders who argued consumer apps often evolve into tech pioneers.

Quick-commerce CEO Aadit Palicha noted that companies like Amazon began as consumer platforms before revolutionising cloud computing. However, investors admitted deep-tech struggles for funding, with most capital chasing quick-return ventures instead of long-term hardware or AI projects.

The debate highlights India's innovation crossroads. Despite having 4,000 deep-tech start-ups, projected to reach 10,000 by 2030, they attracted just 5% of 2023 funding instead of China's 35%.

Experts suggest the government could help by offering tax incentives instead of criticism, and building research bridges between academia and start-ups to compete globally in advanced technologies