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Union Commerce Minister Piyush Goyal delivered a sharp critique of India’s startup ecosystem, highlighting its heavy focus on food delivery, betting, and fantasy sports apps
Union Commerce Minister Piyush Goyal delivered a sharp critique of India’s startup ecosystem
Union Commerce Minister Piyush Goyal delivered a sharp critique of India’s startup ecosystem, highlighting its heavy focus on food delivery, betting, and fantasy sports apps, while contrasting it with China’s advancements in electric vehicles (EVs), battery technology, semiconductors, and artificial intelligence (AI).
Speaking at the Startup Maha Kumbh on Thursday, Goyal questioned whether the country was settling for low-paying gig jobs rather than striving for technological innovation. “Do we want to make ice cream or chips? Are we just here for retail?” he asked, urging startups to pursue meaningful innovation.
India is the world’s third-largest startup hub, with over 100 unicorns and approximately 1.57 lakh government-recognized startups. However, Goyal challenged whether these ventures were truly driving progress. “Are we going to be satisfied being delivery boys and girls? Is this India’s destiny? This isn’t startup culture—this is just entrepreneurship,” he remarked.
Drawing a stark comparison with China’s deep-tech focus, Goyal called for a reality check. “What are Indian startups doing today? We are prioritizing food delivery apps, turning unemployed youth into low-wage gig workers so that the wealthy can get meals delivered without stepping out,” he stated.
Piyush Goyal’s blackpill on the economy is telling that the BJP seems to be waking up to reality, which already sets it apart from the rest pic.twitter.com/r6GmAasLlv— Lord Immy Kant (Eastern Exile) (@KantInEast) April 4, 2025
He also expressed concern over India’s limited number of deep-tech startups, describing the 1,000 companies in the sector as a “disturbing” figure. “Startups should be preparing the nation for the future, not just chasing short-term gains,” he stressed.
Goyal lamented the trend of promising young startups selling out to foreign companies for relatively small sums. “It’s disheartening to hear that a bright idea from a young startup gets sold for Rs 25-50 lakh to an overseas firm,” he said, urging Indian entrepreneurs to build for long-term national growth rather than quick exits.
Industry Leaders Push Back Against Piyush Goyal’s Remarks on Startups
Union Commerce Minister Piyush Goyal’s critique of India’s startup ecosystem has sparked backlash from industry leaders, including Zepto CEO Aadit Palicha and former Infosys executive Mohandas Pai.
In a post on X (formerly Twitter), Palicha emphasized the need for government support in fostering “local champions” rather than undermining teams striving to drive technological revolutions.
“It’s easy to criticize consumer internet startups and compare them to technological advancements in the U.S. or China. If we want to be part of major tech revolutions, we first need to build strong local champions in the internet sector that generate hundreds of millions in free cash flow (FCF). The startup ecosystem, government, and large Indian capital holders should actively support this, not pull down those working hard to achieve it,” he wrote.
Echoing similar concerns, Mohandas Pai cautioned against “belittling” Indian startups and questioned the government’s role in fostering deep-tech innovation.
“These are unfair comparisons. Instead of criticizing our startups, Piyush Goyal should ask himself: What has he done as Minister to help deep-tech startups grow in India? It’s easy to point fingers,” Pai tweeted.
Taking aim at Finance Minister Nirmala Sitharaman, Pai also alleged that startups have long faced regulatory challenges, including Angel Tax and investment restrictions.
“For years, we had a hostile Finance Minister who harassed startups with Angel Tax, prevented endowments from investing, and kept insurance companies from participating—unlike global markets. The RBI, too, continues to harass overseas investors on remittances,” he added.
The remarks highlight the growing debate over India’s startup priorities, government policies, and the balance between fostering deep-tech innovation and supporting consumer internet businesses.
