Commerce and Industry Minister Piyush Goyal urged Indian startups to transcend beyond the realm of instant delivery apps and concentrate on advanced technological domains like semiconductors, robotics, artificial intelligence (AI), and next-generation manufacturing.
Goyal, speaking at Startup Mahakumbh 2025, organized by the Department for Promotion of Industry and Internal Trade (DPIIT), called for startups to innovate in high-tech sectors such as cybersecurity, AI, and biotechnology.
The minister voiced his discontent with the current startup landscape, where he claimed India’s focus has been on food delivery services, creating low-wage jobs for unemployed youth to cater to the wealthy. “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,” Goyal remarked.
Drawing comparisons with the success of Chinese startups in electric mobility and battery technology, he questioned India’s aspirations in the sector, “Should we aspire to be, or are we going to be happy being delivery boys and girls?”
Aadit Palicha’s response
Aadit Palicha, CEO of Zepto, responded to Goyal’s comments, defending 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.”
Palicha highlighted that Zepto employs nearly 1.5 lakh people, generates over Rs 1,000 crore in taxes annually, and attracts more than a billion dollars in foreign direct investment (FDI). The company has also invested heavily 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,” Palicha asserted.
The Zepto CEO also addressed the issue of AI, noting that India lacks large-scale foundational AI models because the country has yet to develop significant internet companies.
He called on the government, the startup ecosystem, and investors to provide more support to local champions in emerging tech sectors rather than undermining the efforts of those trying to create them.
Other industry leaders also react…
Former Infosys CFO Mohandas Pai also weighed in on the debate, criticizing Goyal’s approach and questioning his support for deep-tech startups in India.
Pai took issue with the minister’s remarks, arguing that comparing Indian startups to Chinese counterparts is unfair given the stark differences in investment and infrastructure between the two nations.
Pai pointed out that while China invested $845 billion in its startup ecosystem from 2014 to 2024, India’s investment stood at a mere $160 billion in the same period. He challenged Goyal’s leadership in fostering deep-tech startups, asking, “What has Goyal done to support these startups? Why isn’t the government doing more to address these issues?”
Ashneer Grover, businessman and former BharatPe MD, responded sharply, suggesting that politicians are the ones in a need of a “reality check.”
On X, Grover argued that just like Chinese startups, which began with food delivery before shifting focus to technology, India’s startups are also evolving. “The only people in India who need a ‘reality check’ are its politicians. Everyone else is living in the absolute reality of India,” Grover quipped. “Maybe it’s time to change the public discourse from history to science,” Grover concluded.
The only people in India who need a ‘reality check’ are it’s politicians. Everyone else is living in the absolute reality of India.
China also had food delivery first and then evolved to deep tech. It’s great to aspire for what they’ve done – maybe time for politicians to aspire… pic.twitter.com/6WT8moviAz
— Ashneer Grover (@Ashneer_Grover) April 4, 2025
Anupam Mittal, founder of Shaadi.com, also weighed in, sharing his thoughts on India’s deep-tech potential. He mentioned that in recent months, he has encountered several deep-tech companies that have left a lasting impression on him.
“From AI and space tech to material science, Indian entrepreneurs are ready to take on the world. However, the capital and ecosystem needed for growth and commercialization are severely lacking. Founders can do a lot, but they can’t do everything,” Mittal wrote on X.
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…
— Anupam Mittal (@AnupamMittal) April 4, 2025
At the Startup Mahakumbh, Goyal underscored the importance of investing in future-oriented sectors to ensure that India doesn’t become a mere service economy for foreign corporations. He called for a concerted effort from both the government and the private sector to ensure that startups are prepared to lead in the industries of tomorrow, warning against complacency in the face of global competition.
Also Read: Piyush Goyal slams Indian startups for focusing on ‘fancy ice-cream’ while China develops chips