'Dukaandari hi karna hai?' Piyush Goyal urges startups to think bigger

Speaking at the Startup Mahakumbh, Union Minister Piyush Goyal questioned India's startup focus on food delivery over deep-tech innovation, sparking sharp backlash from industry leaders

India’s startup dreams came under fire this week – not from foreign critics, but from one of its top ministers.

 

Speaking at the Startup Mahakumbh 2025, Union Commerce Minister Piyush Goyal launched a scathing attack on the country’s booming startup ecosystem, questioning whether it was chasing convenience over innovation. 

“Are we going to be happy being delivery boys and girls?” he asked.

 

While entrepreneurs celebrate unicorn valuations and viral apps, Goyal pointed to a deeper concern that India’s brightest minds are building food delivery and fantasy sports apps, while global rivals like China invest in deep-tech, EVs, semiconductors, and AI.

 

“Do we have to make ice cream or chips? Dukaandari hi karna hai?” he asked, urging the youth to dream bigger than just digital storefronts. 

With over 157,000 recognised startups and a growing pool of unicorns, Goyal said India risks falling into a trap: celebrating scale without substance.

 

Transactional business vs transformational tech 

Goyal further questioned the true direction of India’s ‘startup boom’. He challenged entrepreneurs to look beyond surface-level success and build companies that contribute to nation-building and future-ready innovation. 

“This is not startup, this is entrepreneurship,” he said, drawing a clear line between transactional business models and transformational technology. 

He further slammed the growing gig economy model being adopted by startups, claiming it was turning young Indians into low-paid workers for the convenience of the elite. “We are focused on food delivery apps, turning unemployed youths into cheap labour so the rich can get their meals without moving out of their house.” 

Goyal added that India should aim to be a leader in emerging technologies, not just a service provider for consumer convenience. “Only 1,000 startups in India’s deep-tech space is a disturbing situation,” he said.

 

‘Sold for pennies’: Goyal decries early startup exits 

The minister also expressed frustration over the trend of promising Indian startups being sold early to foreign companies, often for modest amounts, before they have a chance to scale globally. “I feel sad when I come to know that for ₹25 lakh or ₹50 lakh, a bright idea of a young startup got sold to a foreign company.”  ALSO READ | Startup Mahakumbh: Deep-tech faces challenges in finding product-market fit

 

He urged founders to protect their intellectual property, build long-term value, and resist quick exits that drain the country of innovation potential.

 

Startup founders clap back: ‘Support, don’t criticise’ 

Goyal’s comments triggered sharp reactions from India’s startup community, with many industry leaders saying the minister’s views undermined the real impact of consumer tech startups.

 

Zepto CEO Aadit Palicha, co-founder of the booming quick-commerce platform, said it’s easy to criticise but hard to build from scratch.

 

“It’s easy to point fingers and say food delivery or quick commerce is not tech… but the reality is, building a company that solves real problems at scale is technology,” he wrote on X. 

  Palicha also called for more government support and long-term capital investment to help Indian startups become local champions and eventually global players.

 

“The startup ecosystem, the government, and the owners of large pools of Indian capital need to actively support the creation of these local champions, not pull down the teams that are trying hard to get there.”

 

India’s deep-tech startups need support

 

Former Infosys director Mohandas Pai also weighed in, saying it was unfair of Goyal to compare India’s startups with China’s without acknowledging the structural challenges Indian entrepreneurs face.

 

“These are bad comparisons. Piyush Goyal should not belittle our startups but ask himself what has he done as our Minister to help deep-tech start-ups grow in India?” 

Pai said real growth in deep-tech will come only when the government removes barriers and offers consistent support—something he says has been lacking. 

“We have a hostile Finance Minister who harassed start-ups on Angel tax for many years… Insurance companies still do not invest, whereas they do globally. The RBI regularly harasses overseas investors on remittances.”  He added that many promising Indian startups have had to fight against the system, not just market challenges. 

'Politicians need the reality check, not startups'

 

BharatPe co-founder Ashneer Grover also joined in on the debate, calling out politicians instead.  "The only people in India who need a ‘reality check’ are its politicians. Everyone else is living in the absolute reality of India," Grover 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%+ economic growth rate for 20 years flat before chiding today’s job creators. Maybe time to change ‘public discourse’ from history to science! Thanks Minister sir for starting this healthy debate," he added.