India's Startup Surge: Criticism and Response

India's commerce minister criticized the focus of local startups on quick services like food delivery, urging them to pursue high-end tech similar to Chinese counterparts. His remarks sparked a strong response from entrepreneurs who highlighted the government's role in fostering innovation and infrastructure.

India's commerce minister recently provoked strong reactions by urging domestic startups to shift their focus from quick services, such as rapid grocery and food delivery, to high-end technology innovations akin to those in China. During a startup event in New Delhi, he criticized the trend of startups offering rapid food delivery services for the wealthy, suggesting it limits the country's growth potential.

Piyush Goyal emphasized the need for Indian entrepreneurs to emulate Chinese firms that concentrate on electric mobility, battery technology, robotics, and related fields. His statements, perceived as a critique of quick commerce companies like Zomato, Swiggy, and Zepto, were met with a flurry of social media backlash from startup founders and venture capitalists, who argued that the government needs to better support tech innovation and infrastructure development.

Prominent figures within India's startup ecosystem, like Aadit Palicha of Zepto and Mohandas Pai of Aarin Capital, voiced their dissatisfaction, calling for more proactive government measures to aid local tech advancements. Despite the criticism, Indian startups have managed to secure significant venture capital, totaling $11.3 billion in 2024, reflecting a 43% increase from the previous year.

(With inputs from agencies.)