Piyush Goyal’s take on Indian Startups: Make ice cream or chips|
A big debate has started on the future of Indian startups and technology. Union Commerce Minister Piyush Goyal, commenting on the startup ecosystem, said that India’s entrepreneurs should not be limited to just food delivery or online shopping, but should also focus on advanced technology like AI, EVs (Electric Vehicles) and semiconductors.
What did Piyush Goyal say?
At an investment event, Piyush Goyal said: “We are making food delivery apps, preparing cheap labour for rich people, while China is developing AI and semiconductors.” He asked the startups: “Do we want to make ice cream (delivery apps) or chips (semiconductors)?” Goyal also said that India produces the most STEM (Science, Technology, Engineering, Mathematics) graduates every year, but we are only creating delivery boys and girls.
Industry Leaders’ Answer
This statement by Piyush Goyal received mixed reactions from the startup industry.
Zepto’s Aadit Palichan’s Answer
Zepto’s co-founder Aadit Palicha said:
His startup is providing jobs to 1.5 lakh people. Every year it contributes more than Rs 1000 crore in taxes. He has also invested in the backend supply chain and fresh fruits & vegetables sector. The Palika also said that even big startups like China’s Alibaba were earlier consumer internet companies and there is a need to support startups and not let them stoop down.
Ashneer Grover’s taunt
BharatPe’s ex-MD Ashneer Grover said:
“China also used to focus on food delivery first, then it reached deep tech. But if we want to take China’s example, then our leaders should also make a plan to maintain 10% economic growth rate for 20 years.
Grover said that economic growth and startup ecosystem will have to go hand in hand.
Mohandas Pai’s strong reaction
EX-Infosys CEO Mohandas Pai criticized Piyush Goyal and said: “Instead of demeaning Indian startups, Piyush Goyal should see what support he has given to deep tech startups? He also taunted Finance Minister Nirmala Sitharaman and RBI (Reserve Bank of India) that the government’s approach towards startup policy is not supportive.
Mohandas Pai said that:
China invested Rs 845 billion between 2014-2024 while India invested only Rs 160 billion. Government should support deep tech and AI startups.
Conclusion of the debate?
Piyush Goyal raised a valid point that India should also grow in advanced technology, but belittling existing startups is not the solution.
Food delivery and consumer startups are also helping in economic growth and increasing jobs. The government needs to increase support for deep tech and AI startups. Startup founders and the government need to work together so that India can become a global tech powerhouse.
What do you say? Ice cream or chips?
