Piyush Goyal's 'Dukaandari' Remark on Startups Sparks Row: Aadit Palicha, Ashneer Grover, Anupam Mittal, Mohandas Pai hit back

India on track to become world’s third-largest economy by 2027, says Goyal

Currently the world’s fifth-largest economy, India is projected to become the fourth-largest by the end of 2025 and third-largest by 2027 — surpassing Japan and Germany, according to Union Commerce and Industry Minister Piyush Goyal, who attributed this growth trajectory to the country’s robust startup ecosystem.

'Do we have to make ice cream or chips? '

The minister stressed the need for Indian startups to focus on emerging technologies and prepare the country for the future. “Do we have to make ice cream or chips? Dukaandari hi karna hai?” he asked, encouraging the youth to dream bigger.

 

'Are we going to be happy being delivery boys and girls'

“Are we going to be happy being delivery boys and girls... Is that the destiny of India... This is not startup, this is entrepreneurship... What other side is doing -- robotics, machine learning, 3D manufacturing and next generation factories,” he said at Startup Mahakumbh event in New Delhi on Thursday.

 

Piyush Goyal calls for more Indian investors

However, he also raised concerns about the dominance of foreign investors in Indian startups. "I only wish they'd had more Indian investors, rather than the foreigners buying off all our startups. And yes, we need more Indian investors into the game. And look at what the other side is doing, robotics, automation, machine learning, preparing ourselves for 3D manufacturing, next gen factories that are more efficient and that compete with the rest of the world," he said.

 

'Startups must evolve and compete globally'

Goyal further noted that Indian entrepreneurs must be ready to adapt, evolve, and take on global competition. "We must learn (from other countries). We must be willing to evolve, we have to be able to learn, we want to aspire to be bigger, better, and bolder. And we should not shy of the competition," he added. "We need to invest heavily to become self-reliant, building chips, AI models which will prepare the nation for the future."

 

Piyush Goyal's remarks sparks row

The remarks did not sit well with several leaders from India’s startup ecosystem, who pushed back against what they viewed as a dismissal of the consumer-tech sector’s impact.

 

'Easy to criticise' says Zepto CEO

Zepto CEO and co-founder Aadit Palicha responded, highlighting the tangible impact of such startups. "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 company that did not exist 3.5 years ago. Rs 1,000+ Crores of tax contribution to the government per year, over a billion dollars of FDI brought into the country and hundreds of crores invested in organising India's backend supply chains (especially for fresh fruits and vegetables). If that isn't a miracle in Indian innovation, I honestly don't know what is," he posted on X.

 

Former Infosys CFO Mohandas Pai hits back at Goyal

Former Infosys CFO Mohandas Pai also weighed in, saying it was unfair of Goyal to compare India’s startups to China’s without acknowledging India’s unique challenges. Tagging the minister, Pai wrote on his official X handle, "There are very many small deep tech startups in chip design, IoT, robotics, EV charging, BMS in India, growing rapidly but where is the capital? Indian startups got 160billion dollars  from 2014/24, China 845 billion dollars , US 2.3 triliion dollars. Long term investors like endowments, insurance still do not invest despite your efforts! Pl remedy this situation. AIF investments are facing regulatory overreach and flow has come down. RBI harasses overseas investors on remittances. For fast charging EV buses we have the tech but great majority of buses run by PSU. How do you sell to these dinosaurs?"

 

Ashneer Grover slams politicians

BharatPe co-founder Ashneer Grover also joined the debate, taking a dig at politicians instead. "The only people in India who need a ‘reality check’ are it’s politicians. Everyone else is living in the absolute reality of India. 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 per cent+ economic growth rate for 20 years flat before chiding today’s job creators. Maybe it's time to change ‘public discourse’ from history to science !," he said on X.

 

Anupam Mittal backs deep-tech push

Shaadi.com founder and Shark Tank India judge Anupam Mittal also weighed in on the controversy, saying, "In the last few months, I have met a few deep-tech companies that have absolutely blown me away. From AI and space-tech to material science, Indian entrepreneurs are ready to take on the world. But capital and the ecosystem for growth and commercialization are severely lacking. Founders can do most things, but not EVERYTHING."