Union Commerce Minister Piyush Goyal's note to Indian startups - asking them to shift focus from food delivery to more advanced technological solutions - has led to a debate online.
Some industry leaders, such as Zepto co-founder Aadit Palicha, pointed out India's consumer startups have generated thousands of crores in tax contributions and provided employment opportunities.
Some others, like ex BharatPe Managing Director Ashneer Grover, reminded the minister China - in the spotlight after a Hangzhou-based research lab launched DeepSeek, an advanced Artificial Intelligence-driven chatbot - also began with food delivery initiatives before evolving further.
All of this began with Mr Goyal appearing to take a shot at the startup sector.
At an investment event in Delhi, he said, "We are making food/hyper delivery apps; creating cheap labour so the rich can have a meal without stepping out, while the Chinese are working on AI (artificial intelligence), EVs (electric vehicles), and semiconductors."
"Should we make ice cream (delivery apps) or make chips (i.e., semiconductors)?" Mr Goyal reportedly asked, "Dukaandari hi karna hai (Do we just want to sell things?)"
He also pointed out India had the largest number of STEM (Science, Technology, Engineering, and Mathematics) graduates every year. "Are you proud we are creating delivery boys and girls?"
The Union Minister also questioned the rising number of online betting apps being developed - many of which have come under the scanner of the probe agencies for alleged money laundering - and urged Indian startups to focus on "real economic productivity".
Among those to respond to Mr Goyal's comments was Mr Palicha.
In a long post on X the co-founder of Zepto, a groceries delivery app, said, "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..." but pointed out he employs 1.5 lakh "real people".
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…
— Aadit Palicha (@aadit_palicha) April 3, 2025
In less than four years Zepto, he said, had contributed Rs 1,000+ crores in taxes per year, brought in more than a billion dollars in FDI, or foreign direct investment, and spent hundreds of crores invested in organising backend supply chains, especially for fresh fruits and vegetables.
On Mr Goyal flagging high-tech startups abroad, Mr Palicha said companies behind such products - China's Alibaba, for example - started as "consumer internet companies".
"The startup ecosystem, government, and owners of large pools of capital need to actively support creation of such local champions... not pull down teams trying hard to get there."
Mr Grover, meanwhile, acknowledged the importance of Piyush Goyal's comment, but he also took a shot at politicians for not pushing the overall Indian economy to grow.
"China also had food delivery first and then evolved to deep tech. It's great to aspire to what they've done - (but) maybe time for politicians to aspire for 10+ per cent economic growth rate for 20 years flat before chiding today's job creators," he said.
"Thanks Minister sir for starting this healthy debate," he added.
A more critical perspective was offered by ex-Infosys CEO Mohandas Pai, who told Mr Goyal to not belittle Indian startups and, instead, focus on ensuring the government supports the creation of those focusing on high technology. He also labelled Finance Minister Nirmala Sitharaman as "hostile".
"... India has startups in all those areas too but they are small. Minister Piyush Goyal should not belittle our startups but ask himself what he has done to help deep tech startups in India?"
"We have a hostile Finance Minister who harassed startups on angel tax for many years..." he continued, also taking aim at the Reserve Bank for "regularly harassing overseas investors..." China, he said, invested $845 billion (in startups) from 2014 to 2024, whereas India invested only $160 billion"
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