Piyush Goyal Slams Congress For Misinterpreting His Remark On Startups: ‘Manufacturing Controversy’

SOURCE : NEW18 NEWS

Last Updated:April 04, 2025, 22:49 IST

Piyush Goyal sparked a heated debate online after his sharp critique on Indian startups focusing on food delivery and betting apps, and comparing it to China’s focus on deep tech.

Union Commerce Minister Piyush Goyal slammed the Congress for “misinterpreting” his remark on Indian startups, which started a heated debate among startup founders across the country. The minister accused the Congress of “manufacturing controversy”.

While speaking to reporters on Friday, Goyal said his message was taken positively by the budding entrepreneurs. He also alleged that the Congress ecosystem did not understand his message for startups, which is a reflection of their negative approach.

“My message for startups has been received (positively) except by some Congress party (social media) handles who are hell-bent on manufacturing a controversy when it is none. the feedback that I have received is that the young Indians are ready to capture the world,” he said.

What Did Goyal Say?

While speaking at the Startup Maha Kumbh on Thursday, Goyal set off a row by delivering a sharp critique of India’s startup ecosystem, highlighting its heavy focus on food delivery, betting, and fantasy sports apps, while contrasting it with China’s advancements in electric vehicles (EVs), battery technology, semiconductors, and artificial intelligence (AI).

“Do we want to make ice cream or chips? Are we just here for retail?” he asked, urging startups to pursue meaningful innovation. “Are we going to be satisfied being delivery boys and girls? Is this India’s destiny? This isn’t startup culture—this is just entrepreneurship,” he further said.

India is the world’s third-largest startup hub, with over 100 unicorns and approximately 1.57 lakh government-recognized startups. However, Goyal challenged whether these ventures were truly driving progress. “What are Indian startups doing today? We are prioritizing food delivery apps, turning unemployed youth into low-wage gig workers so that the wealthy can get meals delivered without stepping out,” he said, drawing a comparison with China’s deep-tech focus.

China is focusing on semiconductors’ growth, artificial intelligence, and building chips, which will prepare themselves for their future, he said. Why doesn’t India have its own large-scale foundational AI model, Goyal quipped, adding that “it is because we still haven’t built great internet companies”.

The Congress reacted by saying that Goyal admitted India’s startup struggles and exposed the lies of Prime Minister Narendra Modi on startups.

Industry Leaders React To Goyal’s Remarks

Union Commerce Minister Piyush Goyal’s critique of India’s startup ecosystem sparked backlash from industry leaders, including Zepto CEO Aadit Palicha and former Infosys executive Mohandas Pai. Palicha stressed the need for government support in fostering “local champions” rather than undermining teams striving to drive technological revolutions.

Echoing similar concerns, Mohandas Pai cautioned against “belittling” Indian startups and questioned the government’s role in fostering deep-tech innovation. “These are unfair comparisons. Instead of criticizing our startups, Piyush Goyal should ask himself: What has he done as Minister to help deep-tech startups grow in India? It’s easy to point fingers,” Pai tweeted.

Paytm founder Vijay Shekhar Sharma said the Indian startup system is still evolving in its maturity cycle, while the same in China and the US are more developed. “Whether China or America, developed ecosystems are geared up to play the long haul. When you are mature, you have resources, then you can play a longer arc game,” Sharma said.

However, Zoho’s Vembu saw the minister’s call as a challenge to engineers and technologists and not as “pointing fingers”, expressing optimism that India will catch up to China in deep tech. “What we need are smart engineers who roll up our sleeves and get it done. Keep in mind the vitamins and cancer cure argument – sequencing how we pay for our big tech ambition is very much part of the engineering problem that smart engineers must solve! We can do this,” he said.

(with PTI inputs)