Startup Leaders Hit Back at Piyush Goyal’s ‘Dukaandari’ Jibe

The Indian startup ecosystem has found itself at the center of controversy after Union Minister Piyush Goyal criticized its focus on food delivery and fantasy gaming apps. While speaking at the Startup Maha Kumbh, Goyal questioned whether Indian startups were limiting themselves to "dukaandari" (shopkeeping) instead of driving innovation in crucial sectors like semiconductors, AI, and electric vehicles.

What Did Piyush Goyal Say?

Goyal highlighted how startups in China are working on cutting-edge technology like EVs, semiconductors, and AI, while Indian startups are more inclined toward food delivery and gaming. He questioned whether India was satisfied with creating gig jobs instead of aiming for deeper technological progress. His remarks sparked widespread criticism from startup leaders and investors.

Mohandas Pai’s Strong Response

Former Infosys CFO and investor Mohandas Pai criticized Goyal’s remarks, calling them unfair. He pointed out that Indian startups do exist in deep-tech sectors but are hindered by government policies and regulatory hurdles.

Pai specifically blamed India’s financial system, stating that government policies such as the controversial angel tax and restrictive investment rules have slowed the growth of deep-tech startups. He questioned Goyal’s role in addressing these issues and compared India’s startup investment figures to China’s: while China attracted $845 billion in funding between 2014-2024, India managed only $160 billion.

Zepto’s Founder Defends Consumer Startups

Aadit Palicha, founder of quick commerce startup Zepto, also spoke out against the criticism. He defended consumer internet startups, stating that Zepto alone provides livelihoods to 1.5 lakh people and contributes over Rs 1,000 crore in taxes annually.

Palicha further emphasized that internet companies play a crucial role in building advanced technologies. He cited examples of global tech giants like Amazon, Google, and Alibaba, which started as consumer internet businesses before pioneering innovations in AI and cloud computing.

Is Goyal’s Criticism Justified?

While Goyal’s concerns about India lagging behind in deep-tech are valid, many argue that his remarks undermine the role of consumer tech startups. India’s startup ecosystem is still growing, and many founders believe that with better government support and funding, Indian companies can become global leaders in both consumer tech and deep-tech innovations.

With nearly 20,000 startups and 110 unicorns, India’s startup ecosystem is undoubtedly vibrant. However, the pace of unicorn creation has slowed down, signaling the need for better investment policies and stronger government support.

What do you think? Should Indian startups focus more on deep-tech, or is their current trajectory just as important? Let us know in the comments!

Reference from:-https://www.indiatoday.in/business/story/piyush-goyal-india-startup-news-zepto-founder-aadit-palicha-mohandas-pai-defend-2703830-2025-04-04