Union Minister of Commerce and Industry Piyush Goyal has sparked a heated debate in India’s startup ecosystem with his remarks at the Startup Mahakumbh 2025, questioning the direction of Indian startups and their focus on consumer-centric businesses like food delivery and “fancy ice cream” apps. Drawing comparisons with China’s advancements in deep-tech sectors such as semiconductors, AI, and electric vehicles, Goyal urged entrepreneurs to reassess their priorities and aim for innovation that drives long-term economic impact.

Key Remarks by Piyush Goyal

• Goyal criticized Indian startups for being overly focused on quick commerce, food delivery, and fantasy sports apps, stating that many ventures were creating gig jobs rather than fostering innovation in critical industries.
• He asked whether India should be satisfied with “shopkeeping” ventures or aspire to lead in global technologies like robotics and battery technology.
• Highlighting China’s progress, he said Indian startups needed a “reality check” to align their ambitions with sectors that could transform the economy.

Goyal’s comments have drawn sharp criticism from industry leaders and startup founders:
Mohandas Pai, former CFO of Infosys, called the comparison with China unfair, pointing out systemic issues such as lack of capital and regulatory hurdles that hinder deep-tech growth in India. He argued that the government should focus on fixing these challenges rather than belittling startups.

Aadit Palicha, CEO of Zepto, defended consumer internet startups, emphasizing their contributions to employment, tax revenues, foreign investment, and supply chain organization. He highlighted Zepto’s role in creating 1.5 lakh jobs and contributing over ₹1,000 crore annually in taxes.

Ashneer Grover, co-founder of BharatPe, criticized Goyal’s remarks as disconnected from reality. He suggested that politicians should aspire for sustained economic growth before targeting job creators.
Anupam Mittal, Shark Tank judge, noted that while Indian entrepreneurs are ready to excel in deep-tech fields like AI and space-tech, the lack of capital and commercialization ecosystems remains a significant barrier.

The controversy has reignited discussions about India’s startup ecosystem compared to China’s. A display board at the Startup Mahakumbh titled “India vs China: The Startup Reality Check” bluntly contrasted India’s focus on food delivery and influencer culture with China’s advancements in high-end technologies. This comparison has fueled calls for policy reforms to support deep-tech innovation.

While Piyush Goyal’s remarks have stirred controversy, they have also sparked a necessary conversation about the future direction of India’s startup ecosystem. Industry leaders agree that systemic support—ranging from capital access to regulatory reforms—is essential for fostering innovation in high-impact sectors.
Credit: This article is based on information from Entrepreneur India, India Today, Business Standard, Indian Express, and other sources.

Key Highlights:

• Piyush Goyal criticized Indian startups for focusing on consumer-centric ventures like food delivery apps instead of deep-tech innovation.
• Industry leaders like Mohandas Pai, Aadit Palicha, Ashneer Grover, and Anupam Mittal defended startups’ contributions to employment and economic growth.
• The debate has reignited comparisons between India’s startup ecosystem and China’s advancements in high-end technologies.
• Calls for systemic reforms to support deep-tech innovation have intensified following Goyal’s remarks.