Startups Protesting in Huge Numbers Following Minister Piyush Goyal's 'dukaandari' Remark

After Union Minister Piyush Goyal questioned the direction and focus of India's startup ecosystem, entrepreneurs and leaders have risen to the occasion to defend it. Piyush Goyal critiqued the present trajectory of Indian companies, despite the fact that the country has the third-largest startup environment globally, behind the US and China. He noted that Chinese companies are focused on electric vehicles, battery technology, semiconductors, and artificial intelligence. On the other hand, many Indian businesses are concentrating on food delivery, betting, and fantasy sports. During his address at Startup Maha Kumbh, Goyal questioned if we needed to create chips or ice cream. "Dukaandari hi karna hai" means "want to do shopkeeping only?" Instead of striving for greater innovation and long-term advancement in critical technologies, he questioned whether the nation was satisfied with the creation of gig jobs.

Big Players Strongly Defer from the Minister

These comments have led to significant replies from well-known names in the startup and tech sector. Prominent investor and former Infosys CFO Mohandas Pai claimed the comparison to China was unjust and useless. He expressed concern about how government regulations are impeding the development of deep technology in India. These are poor analogies, Pai wrote on X. India has small startups in each of those fields as well. Instead of criticising the nation's startups, Minister @PiyushGoyal ought to consider what he has done in his capacity as India's minister to support the expansion of deep tech start-ups in his home country. He also attributed the obstacles to India's financial structure and legislation. Pai further added that for long years, India's hostile @FinMinIndia @nsitharaman harassed start-ups on angel tax, prohibited institutions from investing, and prevented insurance companies from investing, even though they did so all over the world. Due to FE regulations, @RBI frequently harasses foreign investors regarding remittances and AIFs and treats them poorly. Between 2014 and 2024, China made 845 billion dollars in investments. Just 160 billion dollars for India! He asked, "Why isn't Minister @PiyushGoyal @AshwiniVaishnaw contributing to the resolution of these problems?" Ashneer Grover, a former co-founder of BharatPe, also blasted Goyal for disparaging the startup scene in India. According to him, India's leaders are the only ones who require a "reality check." Everybody else is living in India's harsh reality.

Zepto’s Palicha Defended India’s Startup Sector

In response, Zepto founder Aadit Palicha praised Indian consumer internet businesses and emphasised the company's effect, given that it was founded just 3.5 years ago. One of the pioneers of the fast e-commerce sector, Zepto became a unicorn in 2023. Through its online app, it launched the 10-minute delivery service, which its rivals have now embraced. According to Palicha, it is simple to condemn consumer internet companies in India, particularly when contrasting them with the advanced technological capabilities being developed in the US and China. In reality, there are currently around 1.5 lakh genuine people making a living on Zepto. Zepto has brought in over a billion dollars in foreign direct investment and paid over INR 1,000 crore in taxes to the government annually. On top of that, Zepto has spent hundreds of crores in India's supply chains, particularly for fresh fruits and vegetables, he added. Palicha went on to say that big internet firms are crucial to the advancement of new technology. Why doesn't India have a large-scale foundational AI model of its own? he asked.