Are Indian start-ups just 'delivery boys'?—Piyush Goyal's remarks stir debate
What's the story
India's Union Minister Piyush Goyal has sparked a major debate with his recent remarks on the country's start-up ecosystem.
Speaking at the 'Start-up Maha Kumbh' event on April 3, he raised alarm over India's obsession with food delivery apps.
"What are India's start-ups doing today? We're focused on food delivery apps...turning unemployed youth into cheap labor so that rich can get their meals without moving out of their houses," said Goyal.
Comparison
Goyal contrasts Indian and Chinese start-ups' focus
Goyal also drew a stark contrast between the focus of Indian and Chinese start-ups.
He highlighted that while Indian start-ups are primarily involved in food delivery, Chinese counterparts are making strides in areas like electric mobility and battery technologies.
"What Chinese start-ups are doing? ... developing electric mobility, battery technologies," he said.
This comparison has sparked a debate on social media platforms about India's start-up strategy.
Global standing
Goyal questions India's position in global start-up ecosystem
Goyal also questioned India's position in the global start-up ecosystem.
"We're very proud of what India has done. But are we the best in the world yet? Not yet! Should we aspire to be? Or are we going to happy being delivery boys and girls?" he asked.
He urged Indian start-ups to rethink their purpose and true value, aiming for international prominence, not low-paying gig jobs.
Innovation push
Goyal emphasizes need for innovation in Indian start-ups
Goyal stressed on the need for innovation in Indian start-ups.
"Meanwhile, others (countries) creating their own artificial intelligence. They are investing heavily to become self-reliant. Building chips, AI model, which will prepare the nation for the future," he said.
This statement has led to discussions on how Indian start-ups need to concentrate more on technological innovations and less on food delivery and other such businesses.
Defense
What has he done... : Mohandas Pai slams Goyal's remarks
In light of Goyal's remarks, a number of entrepreneurs have come to India's start-up ecosystem's defense.
Former Infosys CFO and prominent investor Mohandas Pai slammed the China comparison as unfair and unhelpful.
"These are bad comparisons. India has start-ups in all those areas too but they are small," Pai wrote on X.
"Minister @PiyushGoyal should not belittle our start-ups but ask himself what has he done as our Minister to help deep tech start-ups grow in India?"
Twitter Post
Here's how Zepto CEO reacted to Goyal's remarks
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. Using our example, the reality is this: there are almost 1.5 Lakh real people who are earning livelihoods on Zepto today - a…
— Aadit Palicha (@aadit_palicha) April 3, 2025
More reactions
Politicians needs a reality check in India: Ashneer Grover
Former BharatPe co-founder Ashneer Grover also slammed Goyal for criticising India's start-up ecosystem. "The only people in India who need a 'reality check' are it's politicians. Everyone else is living in the absolute reality of India," he said.
"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 for 10% plus economic growth rate for 20 years flat before chiding today's job creators," Grover added.
Capital missing
Capital and eco-system for growth severely lacking, says Anupam Mittal
Anupam Mittal, founder of Shaadi.com and Shark Tank India judge, weighed in on Goyal's comments. He mentioned being "blown away" by several deep-tech companies he's met recently.
"From AI & space-tech to material science, Indian entrepreneurs are ready to take on the world. But capital & the eco-system for growth & commercialisation are severely lacking," he said in a post on social media platform X.
"Founders can do most things but not EVERYTHING," Mittal added.