Is Piyush Goyal’s Swipe at Startups a Call for Deeper Innovation?

Is it a moment of reckoning or an aberration? When Union Minister Piyush Goyal took the stage at Startup Mahakumbh, little did the audience realize at that point that Goyal was going to do a hard appraisal of India’s startup ecosystem. He didn’t mince words when he said, “Are we going to be happy being delivery boys and girls? Making fancy ice cream and cookies… is that the destiny of India?” he asked pointedly.

Beyond Cookies and Convenience

Goyal’s remark, though not intended at any one startup, in a way provoked the audience to think deeper. While support as well as dissent is growing for Goyal’s remark, beyond the hyperlocal delivery and Q-commerce, is India producing more semiconductor giants, deep-tech innovators, or core technology players? Well, what Goyal might not have expected was the pushback—from both sides of the spectrum.

Indeed, he has opened up a Pandora’s box. Let’s look at some of the interesting chatter on social forums.

A Semiconductor Founder Responds: “We Exist. You Just Don’t See Us.”

In a raw Reddit post that has since gone viral among tech circles, a semiconductor startup founder directly addressed Goyal’s comment. After decades of designing complex chips at Intel, he launched his own company in 2018. Today, his firm is profitable, serves U.S. and European clients—including one known as “the father of AI”—and works at the bleeding edge of deep-tech.

His message to Goyal? “We are already doing what you want us to do. You just make it almost impossible to do it in India.”

The founder described his angst and disillusionment with Indian institutions—private sector, government, even defence. “We stopped wasting our time trying to get Indian clients,” he wrote. From RFQs with vague commitments to defence officials who rebuffed offers of help, the message was clear: the problem isn't a lack of ambition—it’s a lack of support.

He recounted being dismissed by government departments, sat on by bureaucracies, and undermined by facilitators offering shady shortcuts. Tax benefits he was eligible for were delayed for over two years, only to be returned with a fresh demand for documents. Moments later, a "consultant" promised quick approvals—for a fee.

The post by this founder wasn't just a rant—it, in a way, offers a lens into the quiet, gritty world of real innovation and government approvals—something the establishment has to think about and ponder.

Value vs. Valuation Debate: Build to Sell?

Goyal’s comment was meant to provoke—and it sure did. Aadit Palicha of Zepto, a 10-minute grocery delivery startup, expressed his disappointment in social media. “We are solving real problems, creating jobs, building infrastructure,” he argued, saying that dismissing consumer startups was unfair.

And there are supporters as well. Aman Gupta, co-founder of boAt, came in support of Goyal’s underlying message. “This is a wake-up call. We need to build for value, not just valuation,” he said, emphasizing the need for more sustainable, deep-rooted innovation.

Adding more fuel to the fire was brand consultant Suhel Seth, who labelled much of the Indian startup scene a “racket” on Republic TV. “Many of these startups aren’t solving problems—they’re solving for funding rounds,” he said, calling for more scrutiny and less sensationalism.

Time to Reset the Narrative, Not Just the Targets

The debate sparked by Goyal’s comments isn’t about delivery apps vs. deep tech. It’s about what kind of innovation India chooses to nurture going forward. He has simply told startups to go beyond the obvious.

At the same time, building in India shouldn’t feel like swimming against the tide for deep-tech founders. If the goal is to produce semiconductor leaders and AI pioneers, then support systems must evolve to match that vision—with faster tax approvals, genuine procurement intent, and trust in private sector capability.

More grounded sentiments from the community reveal that entrepreneurs are already here. They’ve been here. They need motivation to think big. While the jury is still out, pondering over whether Goyal’s frustration was valid or not—the answer lies not just in calling out the ecosystem, but in enabling it. Because India doesn’t just need more founders. It needs more finishers.

Food for thought: We need more purpose-driven startups with a hunger for innovation.

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