India’s startup ecosystem has responded sharply to Union Minister of Commerce and Industry Piyush Goyal’s recent comments questioning the sector’s priorities. Speaking at the second edition of the Startup Mahakumbh in New Delhi, Goyal appeared critical of the focus on consumer-centric ventures. He asked the audience, “Do we have to make ice creams or chips? Dukandari hi karni hai?”
Goyal also drew comparisons with China, implying that Indian startups lacked deeper technological ambitions.
Aadit Palicha: Consumer Tech Is a Gateway to Deep Tech
Zepto CEO Aadit Palicha was among the first to defend the sector. In a detailed post on LinkedIn, Palicha said it was “easy to criticize consumer internet startups in India” but stressed that their contributions were significant and measurable. Zepto, he noted, employs nearly 1.5 lakh individuals and didn’t exist three and a half years ago.
“Over ₹1,000+ crores of tax contribution to the government per year, over a billion dollars of FDI brought into the country and hundreds of crores invested in organizing India’s backend supply chains (especially for fresh fruits and vegetables). If that isn’t a miracle in Indian innovation, I honestly don’t know what is,” he wrote.
Palicha also argued that the world’s most influential tech companies — like Amazon, Google, and Alibaba — began as consumer internet platforms. “Why doesn’t India have its own large-scale foundational AI model? It’s because we still haven’t built great internet companies,” he added.
Mohandas Pai: “What Has the Government Done for Deep Tech?”
Former Infosys CFO Mohandas Pai also weighed in, directly questioning the role of the government. “Minister Piyush Goyal should not belittle our startups but ask himself what has he done as our Minister to help deep tech start-ups grow in India?” he posted on X (formerly Twitter).
Pai cited issues such as prolonged harassment over angel tax, limited access to capital from institutional investors like insurance companies, and systemic financial hurdles as impediments for India’s innovation landscape.
Ashneer Grover, Rajeev Mantri Join Chorus
Ashneer Grover, co-founder of BharatPe, called out the political leadership. “China also had food delivery first and then evolved to deep tech. Maybe time for politicians to aspire for 10%+ economic growth rate for 20 years flat before chiding today’s job creators,” he posted.
Navam Capital’s Rajeev Mantri also expressed disapproval. “It is terrible to see the Startup Mahakumbh forum being abused in this manner. There is absolutely nothing wrong with investing in consumer tech, marketplaces, gaming or other industries,” he wrote.
Also read: Govt Plans Regional Push for Biotech Startups and Bio E3 Cells
He added that venture capital should remain focused on returns, not nationalism. “We cannot and must not apply a nationalistic moral lens to venture investing — people will and must invest where there are returns to be made.”
Founders Cite Systemic Barriers
Vinay Rai, founder of OrganicKrate, brought attention to challenges faced at the grassroots. “Government banks reject my loan application for scaling my agri startup, focused on promoting organic food & building farmer networks, citing ‘low sales’ and initial losses,” he posted.
The backlash reflects a sentiment within the Indian startup community that while ambitions of deep-tech are valid, foundational support, long-term policy commitment, and recognition of current economic contributions are equally critical.
