Piyush Goyal, India’s commerce minister, has sparked a heated debate among the country’s entrepreneurial community. At a startup event in New Delhi, Goyal urged startups to emulate China’s focus on high-end technology rather than quick grocery deliveries or fancy ice cream. Goyal criticized startups that offer food delivery services, arguing that these businesses primarily cater to the wealthy and turn unemployed youth into cheap labor.
“Are we going to be happy being delivery boys and girls? Making fancy ice cream and cookies … is that the destiny of India?” Goyal said. The minister highlighted the achievements of Chinese startups, which focus on developing electric mobility, battery technology, robotics, automation, and machine learning.
He suggested that Indian startups need to prepare themselves for advanced manufacturing technologies like 3D printing. Goyal’s comments prompted a flurry of responses on social media from startup founders and venture capitalists. They defended their contributions to the economy and called out the government’s shortcomings in supporting the entrepreneurial ecosystem.
Zepto co-founder Aadit Palicha responded on X, “The government needs to actively support these local champions, not pull down the teams.”
Mohandas Pai, chairman at venture fund Aarin Capital, also criticized Goyal on X. He wrote, “Minister @PiyushGoyal should not belittle our startups but ask himself what has he done as our Minister to help deep tech startups grow in India?”
Despite Goyal’s critique, Indian startups achieved significant success, raising $11.3 billion in venture capital funding in 2024, a 43% increase from the previous year. Aman Gupta, co-founder of boAT, stepped into the debate with a message of solidarity for Goyal.
India’s tech sector ambitions escalated
Gupta interpreted the minister’s address as a motivational call for ambition. “If you want to build a world-class product, you must know your competition.
That applies to India too,” Gupta said. Others in the startup community took issue with Goyal’s remarks. Palicha cited job creation, tax contributions, and foreign investment as proof of real economic value.
“Almost 1.5 lakh real people are earning livelihoods on Zepto today,” he said. Former Infosys CFO Mohandas Pai urged the government to support startups rather than cast doubt. “India has startups in all those areas [deep tech] too, but they are small.
Minister Piyush Goyal should not belittle our startups but ask himself what he has done to help them,” he said. Despite the pushback, Goyal defended his remarks, arguing that they had been misinterpreted. “My message for startups has been received positively except by some Congress party social media handles who are hell-bent on manufacturing a controversy.
The young Indians are ready to capture the world,” he said. The debate continues as the startup community and the government navigate the challenges and opportunities of India’s growing tech industry.
