Introduction
Union Commerce Minister Piyush Goyal’s recent remarks urging Indian startups to move beyond food delivery apps and focus on high-tech innovation have stirred up a heated debate in the startup ecosystem. At a Delhi investment summit, Goyal criticized the current trajectory of consumer internet startups and questioned whether India’s entrepreneurial focus should remain on “dukaandari” — selling and delivering items — or shift to building deeper technology like AI, EVs, and semiconductors.
While some praised the push for technological excellence, others strongly defended the consumer startup sector, highlighting its contribution to jobs, tax revenue, and foreign investment. Let’s take a closer look at what was said, how key startup voices responded, and what this means for India’s innovation future.
Piyush Goyal’s Statement: A Wake-Up Call or Misplaced Criticism?
“Are We Just Creating Delivery Boys and Girls?”
At the investment event, Goyal remarked, “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, EVs, and semiconductors.”
He added provocatively, “Should we make ice cream (delivery apps) or make chips?” referring metaphorically to consumer apps versus semiconductor innovation.
The minister also pointed out that India produces the largest number of STEM graduates globally and questioned whether their talent is being utilized optimally. He further expressed concern about the rise of online betting apps, many of which are under investigation for financial misconduct.
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Aadit Palicha of Zepto Fires Back
“We Employ 1.5 Lakh Real People”
Zepto co-founder Aadit Palicha took to X (formerly Twitter) to respond. He acknowledged the value of deep tech but defended consumer internet startups. “It’s easy to criticize us, but we employ 1.5 lakh real people,” he wrote.
In under four years, Zepto claims to have paid over ₹1,000 crore in taxes annually, attracted over $1 billion in FDI, and built strong backend infrastructure, especially in fresh produce logistics. Palicha also reminded critics that Chinese giants like Alibaba began as consumer internet ventures before moving into deep tech. Piyush Goyal’s
Quote: “The startup ecosystem, government, and capital owners should build up local champions — not tear down those trying to get there.”
Ashneer Grover: Focus on Macro Growth First
“Don’t Scold the Job Creators”
Piyush Goyal’s ‘Dukaandari’ Comment on Indian Startups
Former BharatPe MD Ashneer Grover offered a more balanced response. He appreciated Goyal’s ambition but pointed out that even China started with consumer-facing businesses before scaling into deep technology. Piyush Goyal’s
Grover emphasized that politicians should also focus on growing the overall economy before criticizing today’s startups. “It’s time politicians aimed for 10%+ growth for 20 years straight,” he said.
Takeaway: Encouraging innovation is important, but so is recognizing the critical role played by job-creating consumer startups.
Mohandas Pai: “Don’t Belittle Our Startups”
Startup Growth Needs Policy Support
Ex-Infosys CFO Mohandas Pai offered a strong critique. He accused the Finance Ministry of being “hostile” to startups through policies like angel tax and called out the Reserve Bank for discouraging overseas investment. Piyush Goyal’s
“Minister Goyal should ask himself: What has the government done to help deep tech startups?” Pai asked.
Pai highlighted that India has startups in deep tech, EVs, and AI — but many are small and need nurturing through favorable policy, easier funding access, and fewer regulatory hurdles.
The Real Issue: Innovation vs. Employment?
Can We Do Both?
This debate highlights a deeper issue — must India choose between immediate economic benefits from consumer startups and long-term gains from high-tech innovation? The answer may lie in doing both. Food delivery, e-commerce, and fintech have played a vital role in democratizing services and generating mass employment. At the same time, India’s tech future depends on strengthening its R&D and innovation pipeline. Piyush Goyal’s
To bridge this gap, India needs a balanced startup policy that supports both sectors — job creators today and tech leaders of tomorrow.
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Conclusion
Piyush Goyal’s “dukaandari” remark has undoubtedly started a necessary national conversation. While his call for greater innovation and productivity is timely, the responses from startup founders underscore the significant contributions of consumer-facing startups to India’s economy.
The path forward lies in collaboration — between government, investors, and founders — to build an ecosystem that nurtures both everyday solutions and futuristic tech.
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