Indian Commerce Minister Sparks Debate on Startup Focus: Delivery Apps vs. Deep Tech

Mindless reels, quick money via gambling, no innovation? Piyush Goyal lists 5 reasons why India's startups are losing their way

At the Startup Mahakumbh, Commerce Minister Piyush Goyal voiced concern over the direction of India's startup ecosystem, contrasting it with China's focus on deep-tech innovation. He called on entrepreneurs to pursue globally relevant ventures and move beyond instant delivery services. His sharp remarks, however, drew criticism from startup leaders including Zepto's Aadit Palicha and former Infosys director Mohandas Pai, who questioned the government's support for deep-tech growth and urged collaboration instead of criticism.Commerce Minister Piyush Goyal has delivered a striking critique of India's startup sector, warning that the country risks falling behind global peers unless entrepreneurs shift focus from quick commerce to high-impact innovation. Speaking at the Startup Mahakumbh in New Delhi, Goyal drew a sharp comparison between India and China. He questioned whether Indian startups were truly building for the future or simply catering to short-term convenience. "This disturbed me a lot," said Goyal, referring to a presentation slide titled 'India vs China: The Startup Reality Check'. "We have to be willing to evolve, learn, and aspire to be bigger and better. We shouldn't shy away from competition. Today, India is the world's third-largest startup ecosystem, but we should strive to become the largest." Goyal acknowledged India's global presence in sectors like food delivery and e-commerce but questioned their real-world impact. "We are focused on food delivery apps turning unemployed youth into cheap labour so the rich can get their meals without moving out of their house. And what does a Chinese startup do? They work on developing electric mobility battery technologies and they are today dominating the electric mobility ecosystem. We are very proud of what India has done but are we the best in the world as yet? Not yet," he said. He further challenged the popularity of startup ventures around "fancy ice cream and cookie businesses." "I have no complaint against them but is that the destiny of India? Is India's future satisfied? China, on the other hand, is developing semiconductor and investing heavily in AI models which will prepare the nation for the future. So, what does India wants to make? Ice cream or semiconductor chips?" Also Read: Billionaires' children use labels like 'healthy,' 'vegan', add good packaging and call themselves startups: Piyush Goyal urges better innovation Despite India's ranking among the top three startup ecosystems globally, Goyal noted that only about 1,000 startups in the country currently work in deep-tech areas like semiconductors, AI, robotics, or EV batteries. Calling the figure "a disturbing situation," he said, "Indian startups need a reality check in terms of what they are doing. It is essential that we focus on industries that truly add value to our economy. We shouldn't shy away from competition, but rather strive for innovation and long-term sustainability." He added, "We may do all sorts of international trade agreements (with top countries) and have ambitions to compete with the best in the world, but I can't take grocery stores to them and say this is India's offering for startups." Goyal urged young entrepreneurs to aim for international impact, rather than limiting themselves to shopfront-style businesses. "Dukhandari ka hi kaam karna hai ya vishwavyapi aur international scale par Bharat ki pehchaan banani hai? That my friends is the choice before us," he said. The minister said the country must begin fostering curiosity and critical thinking from early education stages. "We must inspire the next generation to think creatively and work towards groundbreaking solutions, which are the true drivers of economic growth," he added. Also Read: Easy to criticise us but Google, Amazon were also 'consumer startups': Zepto's Aadit Palicha on Piyush Goyal's remark Concerned about Indian innovation being sold off cheaply, Goyal said, "It's heartbreaking to see a bright startup idea sold for ₹50-60 lakh to foreign companies." He called upon unicorns and industry bodies like CII, FICCI, and Assocham to work together in creating funds to support homegrown innovation. The goal, he said, should be to scale deep-tech and high-impact startups within India. In an appeal directed at public figures and investors on shows like Shark Tank India, Goyal asked for more introspection in the kind of ventures being encouraged. He specifically addressed popular investor Aman Gupta of boAt, urging mentors to steer startups toward sustainable models that contribute to long-term national goals, not just viral products. While Goyal's comments drew applause in parts of the auditorium, they sparked frustration in the startup community outside. Zepto co-founder and CEO Aadit Palicha posted on X (formerly Twitter), "We need to build great local champions in internet that generate hundreds of millions of dollars in FCF first if we ever want to get a piece of great technology revolutions. The startup ecosystem, the government, and the owners of large pools of Indian capital need to actively support the creation of these local champions, not pull down the teams that are trying hard to get there." Palicha also said it was unfair to compare Indian consumer internet startups with cutting-edge Chinese tech, adding, "The government should back the creation of 'local champions' and not pull down the teams trying to bring 'technology revolutions'." Also Read: China got $845 bn while India got $160 bn': Mohandas Pai slams Piyush Goyal over 'delivery startups' remark, asks what has he done to help Former Infosys executive and venture capitalist Mohandas Pai echoed similar concerns. In a post on X, he wrote, "These are bad comparisons. Piyush Goyal should not belittle our startups but ask himself what has he done as our Minister to help deep-tech start-ups grow in India? It is easy to point fingers at them." He also criticised the Centre's policies, singling out the Finance Ministry for discouraging investment. "We have a hostile Finance Minister who harassed start-ups on Angel tax for many years, do not allow endowments to invest, insurance companies still do not invest whereas they do globally. The RBI regularly harasses overseas investors on remittances," Pai added. Goyal's remarks have reignited a debate that has long divided India's startup ecosystem -- between rapid commercial success and long-term, deep-tech innovation. His speech has highlighted an uncomfortable truth: that while India has celebrated its startup boom, it must now decide where it truly wants to lead. But as industry veterans remind, vision without enabling policy may only go so far.

Piyush Goyal asks startups to focus on high-tech areas, not food delivery apps

NEW DELHI: Indian startups are focusing on food delivery apps, turning unemployed youth into cheap labour, while Chinese startups are working on electric mobility, battery technology, and building chips and AI models, commerce and industry minister Piyush Goyal said on Thursday as he asked them to become bolder and bigger. "Some people may criticise me for comparing Indian startups with another country's startup; I don't mind it; we have to be willing to evolve, we have to be willing to learn, we want to aspire to be bigger and better and we have to be bolder," Goyal said at the Start-up Mahakumbh event. He said Indian startups must up their game and focus on sectors such as deeptech, battery and electric mobility if India aims to become the largest startup ecosystem in the world. Highlighting the role of startups in making India a Viksit Bharat by 2047, he said the country will only get there if Indian startups innovate in robotics, machine learning and automation, and explore technologies like 3D printing to make manufacturing efficient. Goyal further said that within the deeptech ecosystem in India, around 1,000 startups exist, which is a disturbing sign and if India needs to be recognised globally, we can't restrict to "wealth creation in the short run which may happen with some of these conveniences." Indian startups are not the best yet and need to pivot towards high-value sectors, he said. India has 1.59 lakh startups recognised by the Department for Promotion of Industry and Internal Trade as of January 15 this year. Goyal also said that India, under PM Modi's leadership, is not aiming small, "not looking at (trade) agreements with countries who are in situations worse than what India is in, that was Congress culture. What PM Modi does is agreement with Australia, aspiring to do an agreement with the EU, UK, US, New Zealand, Oman, Bahrain and Qatar, because we want to compete with the best of the world," he said.

Easy to criticise us but Google, Amazon were also 'consumer startups': Zepto's Aadit Palicha on Piyush Goyal's remark

Zepto CEO Aadit Palicha responded to Union Minister Piyush Goyal's critique of India's startup focus, emphasizing the need to build strong local internet companies. He highlighted Zepto's contributions to employment and the economy, and urged support for innovative homegrown champions to drive technological growth in India.Zepto CEO Aadit Palicha has responded to the controversy erupting over Union Minister Piyush Goyal's remark on delivery startups, saying that the reason behind India's slower growth to China, US is because of not building great internet companies. "Why doesn't India have its own large-scale foundational AI model? It's because we still haven't built great internet companies. Consumer internet companies drive this innovation because they have the best data, talent, and capital to put behind it," said Palicha in a post on X. Union commerce minister Piyush Goyal gave a reality check to India's startup ecosystem at the Startup Maha Kumbh on Thursday, comparing them with Chinese counterparts. "We are making food/hyper delivery apps, creating cheap labour so the rich can eat without stepping out, while the Chinese work on EVs, AI, and semiconductors," he said. Showing a comparison slide, Goyal noted Indian startups focus on food delivery, instant groceries, fantasy sports, and influencer-driven apps. Meanwhile, Chinese startups develop EVs, battery tech, semiconductors, AI, robotics, and deep tech. He urged Indian startups to retain ownership, criticizing the sale of promising ideas to foreign firms. "India produces the most STEM graduates, yet we create delivery jobs. We must focus on research and future technologies," he said, slamming betting apps while praising China's dominance in global supply chains like Shein, DJI, and Alibaba. Further reacting to the controversy, he said "We need to build great local champions in internet that are generating hundreds of millions of dollars in FCF first if we ever want to get a piece of great technology revolutions. The startup ecosystem, the government, and the owners of large pools of Indian capital need to actively support the creation of these local champions, not pull down the teams that are trying hard to get there." "It is easy to criticise consumer internet startups in India, especially when you compare them to the deep technical excellence being built in US/China. Using our example, the reality is this: there are almost 1.5 Lakh real people who are earning livelihoods on Zepto today - a company that did not exist 3.5 years ago. ₹1,000+ Crores of tax contribution to the government per year, over a billion dollars of FDI brought into the country and hundreds of crores invested in organizing India's backend supply chains (especially for fresh fruits and vegetables). If that isn't a miracle in Indian innovation, I honestly don't know what is," added the CEO. "I can promise that any capital we generate from this business (and it honestly looks like we will) will be invested towards long-term innovation and value creation in India. That is essentially what I am dedicating the next few decades of my life to try to do: create dynamism in the Indian economy and our capital markets, in the same way the Americans have for decades. We have the talent and capital; we just need the execution," added Palicha.

Zepto CEO Piyush Goyal responds to Piyush Goyal's 'delivery boys' jibe: 'We employed 1.5 lakh people'

Union Commerce Minister Piyush Goyal's comments at the Startup Mahakumbh 2025, questioning India's technological aspirations, drew mixed reactions. Zepto CEO Aadit Palicha defended the impact of consumer internet startups, emphasizing their contributions to employment, economic growth, and technological advancements.Union Commerce Minister Piyush Goyal stirred controversy while addressing the Startup Mahakumbh 2025 in New Delhi. His remarks on India's startup ecosystem, specifically his rhetorical question, "Are we going to be happy being delivery boys and girls? " drew mixed reactions from the entrepreneurial community. By comparing India's startup landscape to China's, Goyal ignited a broader debate about the country's technological aspirations and economic growth. Among the many responses from the startup industry, Zepto's co-founder and CEO, Aadit Palicha, provided a strong counterargument. Using social media platform X, Palicha defended consumer internet startups like his own, emphasizing their significant contributions to employment, economic growth, and technological advancement. In his post, Palicha highlighted that Zepto, a quick-commerce startup that did not exist three and a half years ago, has already generated approximately 1.5 lakh jobs. Furthermore, the company contributes over ₹1,000 crore annually in taxes and has secured more than a billion dollars in foreign direct investment (FDI). He also underlined Zepto's efforts in strengthening India's backend supply chains, particularly in the fresh produce sector. According to him, such achievements exemplify innovation and progress within India's startup ecosystem. As per an Inc42 report, Zepto has been valued at $3 billion (Rs 24,500 crore approximately) in 2025. Palicha also addressed a broader issue -- India's absence in foundational artificial intelligence (AI) development. He argued that the country has not yet built large-scale internet enterprises capable of driving deep technological advancements. By referencing global tech giants such as Amazon, Google, Facebook, Alibaba, and Tencent, he pointed out that consumer internet firms play a crucial role in technological breakthroughs, including cloud computing and AI. He further stated that such companies excel because they have access to vast amounts of data, highly skilled talent, and substantial capital investments. For India to compete in global technology revolutions, he believes it must first foster and support domestic consumer internet giants capable of generating hundreds of millions in free cash flow (FCF). Palicha urged the startup ecosystem, the government, and major financial institutions to encourage the growth of these businesses instead of undermining their efforts. Acknowledging that Zepto is still in its early stages, Palicha admitted that the company is far from reaching the stature of leading global internet firms. However, he expressed confidence in Zepto's potential, emphasizing the company's daily commitment to scaling operations and driving meaningful innovation. He assured that any capital generated through Zepto's success would be reinvested in India to create long-term value. His vision includes boosting dynamism in the Indian economy and strengthening capital markets, drawing inspiration from the United States, where technology firms have significantly influenced economic growth. Palicha believes that India possesses both the talent and the financial resources necessary for such transformation -- what remains crucial is the execution. Goyal's statement has sparked an industry-wide conversation about the trajectory of India's startup ecosystem. While some entrepreneurs share his concerns about the country's technological lag, others, like Palicha, argue that consumer internet startups have already made substantial progress and should be supported rather than dismissed. As India continues to evolve as a global startup hub, the debate over innovation, government policies, and economic priorities remains an ongoing and critical discussion.

'China got $845 bn while India got $160 bn': Mohandas Pai slams Piyush Goyal over 'delivery startups' remark, asks what has he done to help

Commerce Minister Piyush Goyal encouraged Indian startups to shift focus from delivery services to high-tech sectors like AI and robotics. Former Infosys CFO Mohandas Pai urged for resolving capital availability issues and regulatory hurdles to foster the growth of deep tech startups in India.After Piyush Goyal's statement on start-ups started a debate on social media platforms, former Infosys CFO Mohandas Pai asked the minister to rectify the problems that the industry is facing, adding that India does not get enough opportunities to expand its ecosystems. "Minister @PiyushGoyal there are very many small deep tech start ups in Chip design , IOT, Robotics, EV charging, BMS in India, growing rapidly but where is the capital? Indian start ups got 160b $ from 2014/24, China 845b$, US 2.3Tr$," said Pai in a post on X. "Long term investors like endowments , insurance still do not invest despite your efforts! Pl remedy this situation. AIF investments are facing regulatory overreach and flow has come down. RBI harasses overseas investors on remittances. For fast charging EV buses we have the tech but great majority of buses run by PSU. How do you sell to these dinosaurs? Pl help start ups. @DPIITGoI seems to have given up as @FinMinIndia @RBI are very hostile! Pl remedy this @PMOIndia @narendramodi @IndianVCA," added Pai in his reaction to the Commerce Minister's statement. In another post, he further commented "Minister @PiyushGoyal should not belittle our startups but ask himself what has he done as our Minister to help deep tech start ups grow in India? It is easy to point fingers at them. We have a hostile @FinMinIndia @nsitharaman who harassed start ups on Angel tax for many years, do not allow endowments to invest, insurance cos still do not invest whereas they do globally, @RBI regularly harasses overseas investors on remittances and AIF's, treat them badly, cos FE rules. China invested 845b$ from 2014/24 India only 160b$! Why is Minister @PiyushGoyal @AshwiniVaishnaw not helping solve these issues?" 'China got 845b$ from 2014/24 while India only 160b$': Mohandas Pai attacks Piyush Goyal 'over ice-cookies startups' remark, questions what has he done to help them Commerce and Industry Minister Piyush Goyal on Thursday asked the Indian startup community to shift their focus from grocery delivery and ice cream making to to high tech sector like semiconductor, machine learning, robotics, and artificial intelligence. He also said there is a need for more Indian investors into the startup ecosystem. "We are making food/hyper delivery apps; creating cheap labour so that the rich can have a meal without stepping out while the Chinese are working on EVs, AI and semiconductors." Union commerce minister Piyush Goyal gave a reality check to India's startup ecosystem by comparing them with their Chinese counterparts at the second Startup Maha Kumbh here Thursday and exhorting the former to step up their game. "Are we going to be happy being delivery boys and girls... Is that the destiny of India... this is not startup, this is entrepreneurship... What other side is doing -- robotics, machine learning, 3D manufacturing and next generation factories factories," he said here at the Startup Mahakumbh. The minister said the new startups should focus on preparing the nation for the future. "Do we have to make ice cream or chips?" he asked. He also underscored the evolving role of startups in driving India's economic and technological growth. He assured that the government will handhold and support those who face challenges in their startup journey, encouraging them to persevere and try again. The minister stressed the need for increasing domestic capital investments, stating that a strong foundation of indigenous investment is crucial to reducing dependency on foreign capital and ensuring long-term economic resilience. Goyal emphasised on the need to attract more domestic investors to strengthen India's capital base and ensure self-reliance.

'India's bright ideas being sold to foreign firms for just Rs 50-60 lakh: Piyush Goyal attacks startup ecosystem

Indian Commerce Minister Piyush Goyal has urged startups to focus on innovation in deep-tech, robotics, and electric mobility instead of selling their ideas to foreign firms. He stressed the need for Indian investors and highlighted the drawbacks of current trends, comparing them to advancements in countries like China.Commerce Minister Piyush Goyal, speaking at the second edition of the Startup Maha Kumbh on Wednesday, commented on Indian start-ups selling their ideas to foreign firms, adding that arbitration and mediation mechanisms are crucial for India's emergence as a global manufacturing hub. Expressing concern over the brain drain, Goyal lamented that many innovative ideas are being sold to foreign companies for a fraction of their value. "It's heartbreaking to see a bright startup idea sold for Rs 50-60 lakh to foreign companies." "I only wish they'd had more Indian investors, rather than the foreigners buying off all our startups. And yes, we need more Indian investors into the game. And look at what the other side is doing, robotics, automation, machine learning, preparing ourselves for 3d manufacturing, next gen factories that are more efficient and that compete with the rest of the world," he said The Union Minister said Indian startups need to be willing to evolve and not be afraid of competition. "We must learn (from other countries). We must be willing to evolve, we have to be able to learn, we want to aspire to be bigger and better and bolder. And we should not shy of the competition," he said. Indian startups are focusing on food delivery apps, turning unemployed youth into cheap labour, while Chinese startups are working on electric mobility, battery technology, and building chips and AI models, commerce and industry minister Piyush Goyal said on Thursday as he asked them to become bolder and bigger. "Some people may criticise me for comparing Indian startups with another country's startup; I don't mind it; we have to be willing to evolve, we have to be willing to learn, we want to aspire to be bigger and better and we have to be bolder," Goyal said at the start-up Mahakumbh event. He said Indian startups must up their game and focus on sectors such as deeptech, battery and electric mobility if India aims to become the largest startup ecosystem in the world. Highlighting the role of startups in making India a Vikist Bharat by 2047, he said the country will get there if Indian startups innovate in robotics, machine learning and automation, explore technologies like 3D printing to make manufacturing efficient. Goyal further said that within deeptech ecosystem in India, around 1,000 startups exist, which is a disturbing sign and if India needs to be recognised globally, we can't restrict to "wealth creation in the short run which may happen with some of these conveniences."

'Shark Tank needs change': Piyush Goyal has a strong message for sharks like Aman Gupta, Anupam Mittal, Namita Thapar

Easy to criticise us but Google, Amazon were also 'consumer startups': Zepto's Aadit Palicha on Piyush Goyal's remarkCommerce and Industry Minister Piyush Goyal on Thursday asked startups in India to shift their focus from short-term delivery services to high-tech industries. Speaking at the Startup Mahakumbh, he said entrepreneurs should look at fields like artificial intelligence, robotics, semiconductors, and machine learning. He also called for more investment from Indian investors to support the country's startup ecosystem. Goyal asked founders and investors to rethink their business models and take a broader view of growth. He directly addressed mentors from the popular show Shark Tank India and appealed to them to support sustainable and value-driven companies. "Aman Gupta, change your perspective in Shark Tank," Goyal said. He questioned the trend of startups focusing mainly on quick delivery services and low-value products. "Are we going to be happy being delivery boys and girls... Is that the destiny of India... this is not startup, this is entrepreneurship... What other side is doing -- robotics, machine learning, 3D manufacturing and next generation factories factories," he said. The minister urged founders to contribute to building India's future through technology and innovation. "Do we have to make ice cream or chips?" he asked. He highlighted that startups should play a central role in shaping India's economic and technological future. He also said the government will support entrepreneurs who face failures and will help them get back on track. Goyal said that India must rely more on local investors instead of foreign funding. He pointed out that a strong base of Indian capital is important for long-term stability. He also said that more domestic investors should enter the ecosystem to support self-reliant growth.

'Founders can do most things but...: Shark Anupam Mittal reacts after Piyush Goyal's remarks on startups, Shark Tank

Shark Tank judge Anupam Mittal responds to Piyush Goyal's call for increased investment, emphasizing the readiness of Indian entrepreneurs in deep-tech sectors but highlighting the lack of capital and growth ecosystem. Goyal urges mentors to focus on supporting sustainable and value-driven startups instead of quick delivery services.Amid rising controversy over Piyush Goyal's comments on Indian startup ecosystem, Shark Tank judge Anupam Mittal reacted by sharing that founders can do most things but not everything, adding that capital and the eco-system for growth and commercialization are severely lacking "In the last few months I have met a few deep-tech cos that have absolutely blown me away. From AI & space-tech to material science, Indian entrepreneurs are ready to take on the world. But capital & the eco-system for growth & commercialization are severely lacking. Founders can do most things but not EVERYTHING," said Mittal in response to recent statements of Piyush Goyal at an event. Piyush Goyal recent called for more investment from Indian investors to support the country's startup ecosystem. "Aman Gupta, change your perspective in Shark Tank," said Piyush Goyal. He directly addressed mentors from the popular show Shark Tank India and appealed to them to support sustainable and value-driven companies. "Aman Gupta, change your perspective in Shark Tank," Goyal said. He questioned the trend of startups focusing mainly on quick delivery services and low-value products. Grover's remarks come in response to Goyal's comments at the Startup Mahakumbh event, where the Union Commerce Minister questioned whether Indian startups were focusing too much on convenience-based business models rather than technological breakthroughs. "Are we going to be happy being delivery boys and girls?" Goyal asked, criticising the dominance of food delivery and fantasy sports apps. He suggested that India should aspire to lead in emerging technologies such as AI, semiconductors, and EVs instead of celebrating consumer apps that primarily serve urban convenience. "Do we have to make ice cream or chips? Dukaandari hi karna hai?" he remarked, calling on young entrepreneurs to dream bigger. He also took issue with the gig economy, arguing that food delivery startups were "turning unemployed youths into cheap labour so the rich can get their meals without moving out of their house." Goyal further expressed concern over the trend of promising Indian startups selling out to foreign firms too early. "I feel sad when I come to know that for Rs 25 lakh or Rs 50 lakh, a bright idea of a young startup got sold to a foreign company," he said, urging founders to build long-term value instead of seeking quick exits.

Piyush Goyal challenges startups to go beyond delivery apps, sparks strong reactions

Commerce and Industry Minister Piyush Goyal recently urged Indian startups to move beyond instant delivery apps and focus on high-tech domains such as semiconductors, robotics, AI, and next-gen manufacturing. Speaking at Startup Mahakumbh, an event being organised by Department for Promotion of Industry and Internal Trade (DPIIT) to promote innovation in in fields such as cybersecurity, AI, robotics, biotech, among others, he criticised the current startup landscape, saying, "We are focused on food delivery apps, turning unemployed youths into cheap labour, so the rich can get their meals without moving out of their house." He contrasted this with the success of Chinese startups in developing electric mobility and battery technologies, questioning, "Should we aspire to be, or are we going to be happy being delivery boys and girls?" Aadit Palicha's response In response to Goyal's remarks, Zepto CEO Aadit Palicha defended India's consumer internet startups, saying, "It is easy to criticise consumer internet startups in India, especially when you compare them to the deep technical excellence being built in US/China." He highlighted Zepto's impact, noting that it provides livelihoods to nearly 1.5 lakh people, contributes over Rs 1,000 crore in taxes annually, brings in over a billion dollars of FDI, and that it has invested hundreds of crores in strengthening India's supply chains, particularly for fresh produce. "If that isn't a miracle in Indian innovation, I honestly don't know what is," he added. Palicha also pointed out that the reason India doesn't have a large-scale foundational AI model stems from the fact that the country hasn't yet built great internet companies. "The startup ecosystem, the government, and the owners of large pools of Indian capital need to actively support the creation of these local champions, not pull down the teams that are trying hard to get there," he said. Mohandas Pai's reply Former Infosys chief financial officer (CFO) Mohandas Pai also criticised Goyal's comments and said that he shouldn't "belittle" India's startups. He questioned what Goyal had done as a minister to support deep-tech startups in India and argued that the comparisons with Chinese startups are unfair, as India has its own strong players in these sectors although they are small. "China invested $845 billion from 2014-2024; India only $160 billion! Why is Minister @PiyushGoyal @AshwiniVaishnaw not helping solve these issues?" he asked. Goyal's focus on innovation At the Startup Mahakumbh event, Goyal emphasised the need to channel more domestic capital into future-focused innovations, warning against India becoming merely a service economy for foreign players. He stressed that startups must evolve, compete, and prepare India for the industries of the future

Zoho's Sridhar Vembu brings up a 'vitamin' argument to solve Piyush Goyal's problem with startups

Amid ongoing controversy over Piyush Goyal's remark on startups, Zoho founder Sridhar Vembu came out in support of the Commerce Minister, saying that the government cannot invent a better operating system or a smarter robot. "The government cannot invent a better operating system or a smarter robot. The government should not even fund such things - it is not usually good at picking winners and losers. The government can at best conduct competitions where companies participate and then buy the best Indian products," said Vembu in a post X. "In that sense, I see Minister Piyush-ji Goyal's call as a challenge to our engineers and technologists and not as pointing fingers. What we need are smart engineers who roll up our sleaves and get it done. Keep in mind the vitamins and cancer cure argument - sequencing how we pay for our big tech ambition is very much part of the "engineering problem" that smart engineers must solve! We can do this," added Vembu. Commerce and Industry Minister Piyush Goyal on Thursday asked the Indian startup community to shift their focus from grocery delivery and ice cream making to to high tech sector like semiconductor, machine learning, robotics, and artificial intelligence. He also said there is a need for more Indian investors into the startup ecosystem. "Are we going to be happy being delivery boys and girls... Is that the destiny of India... this is not startup, this is entrepreneurship... What other side is doing -- robotics, machine learning, 3D manufacturing and next generation factories factories," he said here at the Startup Mahakumbh. The minister said the new startups should focus on preparing the nation for the future. "Do we have to make ice cream or chips?" he asked. He also underscored the evolving role of startups in driving India's economic and technological growth. He assured that the government will handhold and support those who face challenges in their startup journey, encouraging them to persevere and try again.

Congress misleading startups by distorting message: Goyal

New Delhi: Commerce and industry minister Piyush Goyal on Friday accused Congress of misleading Indian startups by misinterpreting his message at the Startup Mahakumbh, which was taken positively by the budding entrepreneurs. He also alleged that the Congress ecosystem did not understand his message for startups, which is a reflection of their negative approach. "My message for startups has been received (positively) except by some Congress party (social media) handles who are hell-bent on manufacturing a controversy when it is none. By and large, the feedback that I have received is that the young Indians are ready to capture the world," he told reporters here. The minister's remark came in the backdrop of the Congress and some startups criticising his statement at Startup Mahakumbh here on Thursday. In that event, Goyal asked the Indian startup community to shift their focus from grocery delivery and ice cream making to high-tech sectors like semiconductors, machine learning, robotics, and artificial intelligence. "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 on Thursday, showing a slide titled "India vs China. The Startup Reality Check". He has said that some people might criticise him for comparing Indian startups with Chinese, but "I have no objections (because) we have to be willing to learn, evolve...aspire for bigger and better, we have to be bolder and we should not shy of competition".

Piyush Goyal accuses Congress of misleading startups by misinterpreting his message

Goyal asked the Indian startup community to shift their focus from grocery delivery and ice cream making to high-tech sectors like semiconductors, machine learning, robotics, and artificial intelligence.Commerce and Industry Minister Piyush Goyal on Friday accused Congress of misleading Indian startups by misinterpreting his message at the Startup Mahakumbh, which was taken positively by the budding entrepreneurs. He also alleged that the Congress ecosystem did not understand his message for startups, which is a reflection of their negative approach. "My message for startups has been received (positively) except by some Congress party (social media) handles who are hell-bent on manufacturing a controversy when it is none. By and large, the feedback that I have received is that the young Indians are ready to capture the world," he told reporters here. The minister's remark came in the backdrop of the Congress and some startups criticising his statement at Startup Mahakumbh here on Thursday. In that event, Goyal asked the Indian startup community to shift their focus from grocery delivery and ice cream making to high-tech sectors like semiconductors, machine learning, robotics, and artificial intelligence. The minister had questioned Indian food delivery 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 on Thursday, showing a slide titled "India vs China. The Startup Reality Check". He has said that some people might criticise him for comparing Indian startups with Chinese, but "I have no objections (because) we have to be willing to learn, evolve...aspire for bigger and better, we have to be bolder and we should not shy of competition". He said that some people might criticise him for comparing Indian startups with Chinese, but "I have no objections (because). We have to be willing to learn, evolve...aspire for bigger and better, we have to be bolder and we should not shy of competition". "What are Indian startups doing today? We have focused on food delivery apps turning unemployed youth into cheap labour so that the rich can get their meals without moving out of their houses," the minister added. On the other hand, Chinese startups are working on developing electric mobility and battery technologies, and with that today, they are dominating the electric mobility ecosystem. "We are very proud of what India has done, but are we the best in the world? Not Yet. Should we aspire to be or are we going to be happy being delivery boys and girls," Goyal stated, adding that some are making fancy ice cream and cookies, "but is that the destiny of India...this is not startup, it is entrepreneurship or business". China, on the other hand, is focusing on semiconductors' growth, artificial intelligence, and building chips, which will prepare themselves for their future, he has said. "What India needs to do...should we make ice-cream or (semiconductor) chips...and for that, we need courage," the minister has said, adding that the instant grocery delivery firms are using resources for creating hyper-fast logistics, and "look what the other side is doing...robotics, automation, machine learning, 3D manufacturing and next generation factories that are more efficient". In a post on X, Congress said, "Piyush Goyal admits India's startup struggles". In another post, Congress alleged that Goyal exposed the lies of Prime Minister Narendra Modi on startups. Goyal said that his message should be looked into the context that the government has set a strong platform for the country's startups and on that foundation, youth are ready and excited to take the big jump and and will move forward to touch new heights with self-confidence. The ecosystem is providing opportunities for lakhs of people, and in that, some become founders and gig workers join them, he added. The Prime Minister is concerned about them and Aayushman Bharat scheme benefits have been extended to them as well, the minister noted.

Aman Gupta sides with Piyush Goyal's comments on Indian startups to focus on deep tech

Aman Gupta, boAt co-founder, supports Minister Piyush Goyal's call for Indian startups to focus on deep-tech innovation. Amidst debate, Gupta agrees with shifting focus from consumer-centric models like food delivery to technologies such as AI and robotics. He acknowledges the need for high-tech advancements for India to compete globally and achieve its aspirations.boAt co-founder Aman Gupta has come out in support of Commerce and Industry Minister Piyush Goyal's recent remarks urging Indian startups to focus more on deep-tech innovation. Gupta's comments come amid an ongoing debate within the startup ecosystem where several founders have countered Goyal's critique of consumer-focused ventures like food delivery and luxury goods startups. Gupta took to social media platform X to echo Goyal's call for startups to move beyond consumer-centric models like food delivery and fantasy sports apps and instead prioritise technologies like artificial intelligence, robotics, and quantum computing. "It's not every day that the government asks founders to dream bigger. But at Startup Mahakumbh, that's exactly what happened. I was there. I heard the full speech. Hon. Minister @PiyushGoyal Ji isn't against founders. He believes in us. His point was simple: India has come far, but to lead the world...we need to aim higher. "It reminded me of something I say often on Shark Tank India, If you want to build a world-class product, you must know your competition. That applies to India too," Gupta wrote. The minister, during the inaugural of Startup Mahakumbh on Thursday, asked the Indian startup community to shift their focus from grocery delivery and ice cream making to high-tech sectors like semiconductors, machine learning, robotics, and artificial intelligence. He had questioned Indian food delivery 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, showing a slide titled "India vs China. The Startup Reality Check". The minister had pointed out that only 1,000 of India's 1.57 lakh recognized startups operate in deep-tech spaces-a situation he described as "disturbing" given India's aspirations to become a developed nation by 2047. Startup founders including Zepto CEO Aadit Palicha, Zoho founder Sridhar Vembu, and Paytm founder Vijay Shekhar Sharma have countered Goyal's comments. Gupta, however, said pitching the country against China is a smart strategy. "Benchmarking against China, the US, or anyone else -- isn't weakness. It's a smart strategy. We're already the 3rd largest startup ecosystem in the world and the fastest-growing major economy. But if we want to be No.1, we need to also go deep into AI, deep tech, climate, mobility, and infra. We need LLMs and innovation stacks that compete on global standards. "And to make that happen, we also need Scientific risk, More patient capital, Founder-policymaker collaboration and a long-term national vision," Gupta wrote.

'Sucking up to power is a national cancer': Investor slams boAt's Aman Gupta for praising Piyush Goyal

A public disagreement has erupted in India's startup ecosystem after Commerce Minister Piyush Goyal urged founders to move beyond low-tech ventures. boAt's Aman Gupta supported the remarks, calling them aspirational. But entrepreneur Sam Baisla hit back, calling Gupta's response submissive and warning against normalising public ridicule. Goyal's speech, which questioned the ambitions of Indian startups and compared them to China's innovation-led ventures, has reopened old wounds about bureaucracy, innovation, and the role of government in driving entrepreneurial progress.A sharp rift has emerged in India's startup circles following controversial remarks by Commerce Minister Piyush Goyal at the Startup Mahakumbh -- and the aftershock is still playing out online. While Goyal's speech was meant as a push for deeper innovation, it has sparked backlash from sections of the entrepreneurial community. One of the loudest voices of criticism has come from entrepreneur and investor Sam Baisla, who directly called out boAt co-founder Aman Gupta for applauding the minister's comments. In a strongly worded post on LinkedIn, Baisla questioned Gupta's interpretation of the minister's message, saying it implied that founders required government mockery to think big. "Everything is wrong with this attitude," Baisla wrote. "Government's job is to facilitate and serve the citizens, not to ridicule, blame, and call them lazy. Why aren't the corporate leaders asking the government questions?" He also pushed back against the stereotype of Indian entrepreneurs lacking ambition, asking: "If people are lazy and dumb, why do they flourish abroad?" Baisla warned that the broader culture of seeking favour from those in power could have serious long-term consequences. "The attitude of sucking up to powerful people and not standing up for what is right is the cancer of our country," he said. "This culture of 'ji sir, hum hi gadhe hain' will destroy the future of our next generations." The storm began after Commerce Minister Piyush Goyal addressed Startup Mahakumbh last week, questioning whether India's startup ecosystem was falling short of its potential. "Are we going to be happy being delivery boys and girls... Is that the destiny of India?" Goyal asked. "This is not a startup, this is entrepreneurship... What the other side is doing -- robotics, machine learning, 3D manufacturing and next generation factories." He presented a slide titled "India vs China. The Startup Reality Check" to drive home the gap in tech innovation. "Do we have to make ice cream or chips?" Goyal added, urging founders to shift towards sectors like artificial intelligence, semiconductors, machine learning and robotics. He also flagged the low number of deep-tech startups -- just 1,000 out of 1.57 lakh recognised ventures -- as a problem that could hold back India's development goals. Goyal criticised certain startup models that rely on gig work, stating they risk turning young people into low-cost labour rather than empowering them. He also highlighted the need for greater domestic investment to reduce dependence on foreign capital. "A strong foundation of indigenous investment is crucial," he said. At the same time, the minister assured founders that the government would continue supporting those facing challenges. "If you fail, don't worry -- try again," he added. Not all reactions to Goyal's comments were negative. Aman Gupta, co-founder of audio tech brand boAt and a judge on Shark Tank India, voiced strong support for the minister's vision. "It's not every day that the government asks founders to dream bigger," Gupta posted on X. "But at Startup Mahakumbh, that's exactly what happened. I was there. I heard the full speech. Hon. Minister @PiyushGoyal Ji isn't against founders. He believes in us." Gupta described the minister's speech as a reminder to raise the bar. "His point was simple: India has come far, but to lead the world, we need to aim higher." Drawing on his own experience, he added, "It reminded me of something I say often on Shark Tank India: If you want to build a world-class product, you must know your competition. That applies to India too." On Goyal's comparison with China and the US, Gupta wrote: "Benchmarking against China, the US, or anyone else -- isn't a weakness. It's a smart strategy. We're already the 3rd largest startup ecosystem in the world and the fastest-growing major economy. But if we want to be No.1, we need to also go deep into AI, deep tech, climate, mobility, and infra." He concluded by calling for "scientific risk, more patient capital, founder-policymaker collaboration and a long-term national vision." The minister's remarks have reignited a familiar conversation in India's startup circles -- who gets to critique founders, and how? While some viewed Goyal's speech as a necessary challenge to complacency, others felt the tone was dismissive. The startup space remains divided: a few founders called the comments timely and aspirational, while others pointed fingers at bureaucratic delays, poor policy implementation and inconsistent support. Prominent names including Zepto CEO Aadit Palicha, Zoho's Sridhar Vembu and Paytm's Vijay Shekhar Sharma have also weighed in, reflecting a growing tension between policy ambition and grassroots realities. For now, the debate continues to unfold on social media and in boardrooms. But the message is loud and clear -- India's entrepreneurs are watching, and they expect the same level of accountability from government as is demanded of them.

Piyush Goyal Gives A "Reality Check" To Indian Startup Ecosystem

Goyal highlighted the need for more deeptech startups, saying it is imperative to establish India as a global innovation hub "I have a lot of nice things that I could talk to you about, but I have a slide that I want to show you that disturbed me a lot," commerce and industry minister Piyush Goyal said at the Startup Mahakumbh today. This came after the minister heaped praises on the country's burgeoning startup ecosystem, and was his attempt to nudge investors and entrepreneurs to change their priorities and think about big innovations. During his speech on the inaugural day of the three-day event, Goyal presented a slide, titled "India Vs China: The Startup Reality Check", which he said someone shared with him a few days ago. It compared the tech innovations in the two countries. The slide compared blooming Indian startup sectors like foodtech, D2C and quick commerce with China's dominance in deeptech sectors like EVs, semiconductors, AI and robotics. Goyal addressed almost each of these comparisons and expressed concerns over how Indian innovations are tilted towards convenience-oriented businesses. "My reply to this was "very inspiring" and I want each one of you to take some inspiration from this. Some might call me out for comparing with other nations, but I don't have qualms with that. We are the world's third-largest startup ecosystem and we should aspire to be the largest in the near future," Goyal added. Indian Startup Ecosystem's Convenience Problem Starting off with the comparison of food delivery with EV and battery tech, he said India as a nation has been obsessing over food deliveries while our neighbouring country has fortified its tech solutions in the aforementioned deeptech sectors. While China has been advancing its tech play, the Indian startup ecosystem is focussed on food delivery apps, which utilise the cheap labour of unemployed youth, he said. Goyal also said that many startups in India are selling ice creams by packaging them in an appealing way and labelling them as healthy, which is seldom the case. "Are we going to make ice cream or chips?... Aman Gupta, change your investment perspective on Shark Tank!" he remarked. Gupta, the cofounder of boAt and a judge on TV show Shark Tank India, was among the audience during the address. The minister also raised the issue of dearth of domestic capital, which he said has led to foreign investors acquiring Indian startups. "When it comes to instant grocery delivery, I don't have problems, they can list at a few billion dollars, I will be really happy. I only wish that they had more Indian investors rather than foreigners buying all of our startups," the minister said. His comments come on the heels of quick commerce major Zepto and ecommerce giant Flipkart firming their plans to list on the bourses. While Zepto is backed by foreign investors like General Catalyst, Y-Combinator and Lightspeed, Flipkart is owned by US-based retail giant Walmart. Earlier in the day, Indian Angel Network cofounder Padmaja Ruparel also highlighted how India is losing out on its early stage healthtech startups to overseas players due to a lack of domestic capital. While China is also home to a number of foodtech and quick commerce players, Goyal's comments were aimed at encouraging Indian entrepreneurs and investors to take more risks and come out with innovations in the deeptech sector. The Need For Deeptech Startups During a session at the Startup Mahakumbh earlier in the day, Peak XV Partners' Rajan Anandan labelled deeptech as the final frontier for the Indian startup ecosystem and expressed confidence that the country would emerge a leader in the sector. However, Goyal shared his displeasure with the current state of deeptech in India. Pointing out that the country is home to a very few active deeptech startups, the minister said that the propagation of innovations in such fields is imperative to establish India as a global innovation hub. "When I look at deeptech, the numbers are a disturbing sign. Wealth creation in the short term may happen with some of these conveniences. But are we looking at dukaandari (shopkeeping) or are we looking to compete globally with our innovations?" he asked the audience. In a bid to promote deeptech in India, the Startup Mahakumbh is also hosting a couple of competitions to promote innovations in sectors like cybersecurity, AI, robotics, biotech, among others. The price pool of these competitions is pegged at over INR 70 Cr. Goyal called for a larger pool of INR 500 Cr worth cash prizes for contests hosted at the next edition of the event. He urged defence ministry, Nasscom, and unicorns to pitch in to make the pool larger moving forward.