Startup Leaders Hit Back At Piyush Goyal’s Remarks On Quick Commerce, Innovation

Union Commerce Minister Piyush Goyal's recent criticism of Indian startups for focusing on food delivery and quick commerce rather than deep-tech innovation has sparked strong reactions from industry leaders.

At the Startup Mahakumbh event in New Delhi, Goyal questioned the direction of India's startup ecosystem, asking whether the country wants to be known for making 'ice cream or chips' and if entrepreneurship will remain confined to "dukaandari" (storekeeping). He urged startups to look beyond consumer services and pivot towards advanced technologies such as semiconductors, artificial intelligence, and robotics.

Responding sharply to these comments, Zepto co-founder and CEO Aadit Palicha defended the quick commerce space. In a post on X (formerly Twitter), Palicha highlighted Zepto’s significant contributions—creating 1.5 lakh jobs, paying over Rs 1,000 crore in taxes, and attracting over $1 billion in foreign direct investment. “It is easy to criticise consumer internet startups in India, especially when you compare them to the deep technical excellence being built in the US/China,” he wrote.

Goyal's remarks also drew criticism from other notable entrepreneurs. BharatPe founder Ashneer Grover stated that such comments reflect a disconnect from ground realities. “China also had food delivery first and then evolved to deep tech. Maybe it’s time for politicians to aspire for 10%+ economic growth for 20 years before chiding today’s job creators,” he posted. Grover further emphasised the need to shift the national discourse from history to science.

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Former Infosys CFO TV Mohandas Pai also challenged Goyal’s stance, questioning the government’s role in promoting deep-tech ventures. Pai pointed out that despite the existence of startups in sectors like chip design, robotics, and electric vehicle (EV) charging infrastructure, capital remains scarce. “Where is the capital?” he asked. “Long-term investors still don’t invest despite your efforts. AIF flows are down, the RBI discourages foreign investors, and government-run transport services won’t adopt technology even when available.”

G20 Sherpa Amitabh Kant, speaking at the same event, echoed Goyal’s concerns and warned against India becoming a 'technological colony.' He stressed the importance of investing in innovation to safeguard the country’s technological and economic sovereignty. The debate has ignited a broader conversation about the evolution of India’s startup ecosystem and the balance between consumer-driven models and investment in cutting-edge technological development.