Questioning the innovation level of Indian startups, Union Commerce Minister Piyush Goyal’s comment has received major criticism. Speaking at the Startup Mahakumbh in New Delhi, Goyal suggested that startups must look beyond gig work and grocery delivery to create “meaningful” innovation in sectors like deep-tech, electric mobility, and robotics — a shift he believes is essential for India’s long-term growth.
The statement quickly drew flak from prominent industry figures. Aadit Palicha, Co-founder & CEO of Zepto, publicly countered Goyal’s view. He highlighted that Zepto, in just 3.5 years, supports over 1.5 lakh jobs, contributes ₹1,000 crore in annual taxes, and has attracted significant foreign direct investment. He stressed that consumer internet startups are actively helping digitize India’s supply chains, particularly in fresh produce and last-mile delivery.
Backing the sentiment, Mohandas Pai, Chairman of Aarin Capital and former CFO of Infosys, questioned the government’s support for innovation-focused startups. He cited challenges such as the angel tax, and limited access to domestic capital from institutions like insurance companies or endowment funds.
The controversy has sparked a wider conversation about India’s innovation landscape. While the government urges a shift toward high-end tech sectors, many argue that consumer-focused startups have made crucial contributions in job creation, infrastructure, and economic formalization.
With India eyeing its goal of becoming a developed economy by 2047, industry experts say a balanced ecosystem—that values both digital services and core tech—may be the way forward.
