Union Commerce Minister Piyush Goyal on Thursday criticised the current start-up ecosystem of the country, stating that the entrepreneurs should reflect on the quality of the jobs they are creating. While speaking at Startup Mahakumbh, Goyal stated that most of the startups are focused on food delivery apps, adding that the entrepreneurs must focus on comparatively more impactful industries.

"Indian Startups Need A Reality Check"

While expressing concern over the quality of jobs, the commerce minister stated that the food delivery apps are turning the unemployed youth into cheap labour. He further compared the Indian startups to Chinese startups by stating that while the Chinese startups are working in areas such as robotics, battery technologies, and semiconductors, Indian startups are limited to "fancy ice creams" and delivery services.

ALSO READ: PM Modi Meets Myanmar's Junta Chief After Deadly Earthquake Kills Over 3,000, Says 'India Is Doing Whatever Possible...'

“Indian startups need a reality check in terms of what they are doing. It is essential that we focus on industries that truly add value to our economy. We shouldn’t shy away from competition, but rather strive for innovation and long-term sustainability,” the commerce minister stated.

Should Not Downplay Efforts- Mohandas Pai 

However, several people from the business fraternity criticised Goyal for his remarks, stating that he should not downplay the efforts of people generating wealth and employment for the youth. Former Infosys CFO Mohandas Pai stated that the commerce minister should reflect on his efforts to grow the startup sector rather than pointing fingers.

"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? It is easy to point fingers at them. We have a hostile Finance Minister who harassed start ups on Angel tax for many years, do not allow endowments to invest, insurance cos still do not invest whereas they do globally," Pai stated.

ALSO READ: South Korea Constitutional Court Removes Suspended President Yoon Suk Yeol From Office; What Next? Details

 

Minister @PiyushGoyal there are very many small deep tech start ups in Chip design , IOT, Robotics, EV charging,BMS in India, growing rapidly but where is the capital? Indian start ups got 160b $ from 2014/24, China 845b$, US 2.3Tr$. Long term investors like endowments ,… https://t.co/SdLKHMlRuf

— Mohandas Pai (@TVMohandasPai) April 3, 2025

Apart from this, Zepto CEO Aadit Palicha also stated that his firm has given employment to almost 1.5 lakh people and has generated hundreds of crores in tax for the government. “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," Palicha stated.


Also In News