NEW DELHI: Indian startups should emulate China by focusing on high-end tech and not quick grocery deliveries or fancy ice cream, the country’s commerce minister said on Thursday.
The harsh criticism had entrepreneurs quickly pointing out the government’s shortcomings.
Piyush Goyal told a startup event in New Delhi that too many were offering food delivery so that “the rich can get their meals without moving out of their house” and were “turning unemployed youth into cheap labour”.
“Are we going to be happy being delivery boys and girls? (Making) fancy ice cream and cookies ... is that the destiny of India?” he said, showing a slide titled “India vs China. The Startup Reality Check”.
He didn’t name companies, but his speech was seen as an apparent attack on quick commerce businesses like Zomato , Swiggy and Zepto that deliver food and groceries in as little as 10 minutes.
“What do the Chinese startups do? Work on developing electric mobility, battery technology ... look at what the other side is doing _ robotics, automation, machine learning, preparing themselves for 3D manufacturing,” Goyal said.
His comments prompted hundreds of posts on social media from startup founders and venture capitalists, taking the government to task for failing to create infrastructure and jobs and not doing enough to support entrepreneurs.
“The government (needs) to actively support the creation of these local champions, not pull down the teams,” Zepto co-founder Aadit Palicha retorted on X.
“Minister @PiyushGoyal should not belittle our startups but ask himself what has he done as our minister to help deep tech startups grow in India?” Mohandas Pai, chairman at venture fund Aarin Capital, wrote on X.
Indian startups raised $11.3 billion in venture capital funding last year, up 43 per cent.
Published in Dawn, April 5th, 2025