Winning Bizness Desk

Mumbai. Mumbai. Union Commerce and Industry Minister Piyush Goyal's critical remarks on Indian startups at the 'Startup Mahakumbh' event in New Delhi have triggered strong reactions on social media. Goyal questioned the innovation levels of Indian startups and their focus on delivery-based models, drawing a sharp contrast with Chinese ventures in deep tech. Former NITI Aayog CEO Amitabh Kant also emphasized the need for India to avoid becoming a "technology colony" by focusing on original ideas.

Goyal Criticizes Focus on Delivery and Fantasy Apps

Speaking on April 3, Goyal said that many Indian startups were centered around food delivery, fantasy sports, and hyperlocal logistics, instead of working on transformative technologies like EVs, semiconductors, robotics, and AI. “Are we content with creating low-wage gig jobs instead of striving for real technological advancement?” he asked. Goyal questioned if the country was limiting itself to making ice creams and chips and creating delivery jobs, rather than aspiring to global innovation standards.

‘Is This Innovation or Just Business?’ Goyal Asks

Highlighting the proliferation of delivery apps and influencer-driven platforms, Goyal challenged the definition of innovation in India’s startup ecosystem. He said that while India had made progress, the country was yet to match the best globally. “Is this really innovation, or just a convenient way to exploit cheap labor?” he remarked, urging entrepreneurs like Aman Gupta of Shark Tank to reassess their views on what qualifies as a startup.

Minister Blames Congress for Criticism

Reacting to the online backlash, Goyal told Dainik Bhaskar that only Congress and its ecosystem were uncomfortable with the enthusiasm Indian youth were showing towards startups. He said their discomfort stemmed from the country’s ongoing success in the startup domain. Goyal maintained that India had made significant strides and now needed to aim higher. “The message is clear: we have progressed, but it’s time to leap further,” he said.

Founders, Netizens Respond with Counterpoints

Goyal’s comments drew mixed reactions. Zepto co-founder Aadit Palicha said criticism was easy and unproductive, implying that more nuanced conversations were needed around innovation. A user on social media platform X (formerly Twitter) responded by sharing a list of 48 Indian startups involved in advanced technologies, countering the minister’s claims. Others pointed out the role of delivery-based startups in creating jobs and solving real-world problems.

Domestic Capital Urged for Startup Ecosystem

During his speech, Goyal stressed the need for increased domestic funding for startups. He suggested that Indian unicorns and industries should come together to form a fund for local innovation. Expressing concern, he said, “It’s painful when a young founder sells a promising idea to a foreign firm for ₹25 or ₹50 lakh. We must bring more domestic capital into the ecosystem.”

The debate reflects a broader tension between traditional views of innovation and the evolving landscape of consumer-tech-driven startups in India. While government support for entrepreneurship remains strong, the definition of what qualifies as meaningful innovation continues to spark differing opinions.