'Misplaced, illogical': BJP MP slams Zepto CEO's defence of Indian startups

BJP MP Praveen Khandelwal, who also serves as the secretary general of the Confederation of All India Traders, backed Goyal's remarks made at the recently concluded Startup Mahakumbh

BJP MP Praveen Khandelwal has lashed out at Zepto CEO Aadit Palicha, calling his defence of India’s consumer internet startups “misplaced and illogical,” in response to Union Commerce Minister Piyush Goyal’s sharp critique of the startup ecosystem.

 

Khandelwal, who also serves as the secretary general of the Confederation of All India Traders (CAIT), backed Goyal’s remarks made at the recently concluded Startup Mahakumbh in New Delhi. “Claiming to create jobs and pay taxes while burning foreign capital to dismantle India’s small neighbourhood kirana stores is not innovation,” Khandelwal told NDTV.

 

What did Piyush Goyal say?

 

Goyal had stirred debate at the Startup Mahakumbh on April 3 with his blunt “Startup Reality Check” presentation, where he criticised the dominance of food delivery and fantasy sports platforms.

 

“Are we going to be happy being delivery boys and girls? Is that the destiny of India?” he asked, contrasting India’s startup trends with China’s emphasis on AI, robotics, and 3D manufacturing.

 

While Goyal acknowledged that his remarks would attract criticism, he remained unapologetic. “We have to be willing to learn, evolve… aspire for bigger and better, we have to be bolder and we should not shy of competition,” he added during his keynote address.

 

What did Aadit Palicha say?

 

Zepto's Palicha, in a lengthy LinkedIn post, defended India’s consumer startups and Zepto’s impact in particular. “There are almost 1.5 lakh real people earning livelihoods on Zepto today,” he wrote, highlighting over ?1,000 crore in annual tax contributions and more than $1 billion in foreign direct investment (FDI) brought into India. “If that isn’t a miracle in Indian innovation, I honestly don’t know what is,” he added.

 

He also pushed back on the notion that only deep-tech ventures can spark true innovation. “Consumer internet companies drive innovation because they have the best data, talent, and capital. We need to build great local champions in internet first if we ever want a piece of future revolutions like AI,” Palicha argued.

 

Khandelwal, however, dismissed the argument, stating that Palicha’s rebuttal missed the essence of Goyal’s critique. “Innovation must serve the nation, not just convenience. We need startups that build foundational technologies to drive India’s future,” he said.

 

Helpline for startup grievances

 

Following the debate over his remarks, Piyush Goyal announced that the government is launching a dedicated helpline for startups across India. Goyal said the helpline would be accessible to all startups nationwide, allowing them to register complaints or provide feedback on policies. 

 

“Whenever any officer troubles you (startups) or if you want to make any suggestion regarding any changes in the laws or if you want to flag any product or technology which may not fall under the current legal boundaries of India, you will be able to reach out to that helpline,” said Goyal.