Daijiworld Media Network - New Delhi
New Delhi, Apr 4: Union Commerce minister Piyush Goyal’s recent remarks urging Indian startups to move beyond food delivery and focus on ‘real economic productivity’ like AI, EVs, and semiconductors have triggered a heated debate across the startup ecosystem and tech community.
Speaking at an investment summit in Delhi, Goyal said, “We are making food/hyper delivery apps; creating cheap labour so the rich can have a meal without stepping out, while the Chinese are working on AI, EVs, and semiconductors. Should we make ice cream or chips?”
He also criticised the proliferation of betting apps and questioned whether India’s vast pool of STEM graduates should be creating more delivery jobs. “Are you proud that we are creating delivery boys and girls?” he asked, calling on startups to aim for “deep-tech” innovation that boosts productivity and economic strength.
The remarks sparked sharp responses from several industry leaders.
Zepto co-founder Aadit Palicha took to X (formerly Twitter) to defend consumer startups. “It’s easy to criticise consumer internet startups, especially when you compare them to US/China. But Zepto employs over 1.5 lac real people and pays over Rs 1,000 cr in taxes annually,” he said. Palicha added that Zepto has brought in over a billion dollars in FDI and invested heavily in supply chain infrastructure.
He argued that many globally renowned tech giants like Alibaba started as consumer apps and evolved into deep-tech players. “We must support local champions instead of pulling them down,” he wrote.
Ashneer Grover, former MD of BharatPe, acknowledged Goyal’s intent but reminded that even China’s tech ecosystem began with consumer apps. “China also had food delivery first, then evolved. Maybe time for politicians to aspire for a 10%+ GDP growth rate for 20 years flat before chiding job creators,” he quipped.
Mohandas Pai, former Infosys executive, offered a more critical take. “India does have startups in deep-tech, but they’re small. What has the government done to support them?” he asked. He slammed the finance ministry for being “hostile” and taxing angel investors, and the RBI for discouraging foreign investments.
Pai compared startup investments over a decade, stating: “China invested $845 billion from 2014-24 in startups. India invested just $160 billion. So where is the support?”
While the debate continues to grow, many agree that the dialogue has highlighted the need for a balanced ecosystem—one that encourages both consumer-facing businesses and deep-tech ventures.
Meanwhile, Goyal’s remarks have opened the door to a larger policy discussion about how India wants to shape its innovation narrative in a rapidly changing global tech landscape.