BJP MP defends Piyush Goyal’s remarks on Startups, calls Zepto CEO’s response 'misplaced'
- In Reports
- 11:50 PM, Apr 05, 2025
- Myind Staff
BJP Member of Parliament Praveen Khandelwal has strongly backed Union Minister Piyush Goyal’s recent remarks on Indian startups, criticising Zepto CEO Aadit Palicha for what he called a “defensive” and “misplaced” response to the minister’s broader message. The debate stems from Goyal’s comments at the Startup Mahakumbh, which sparked widespread discussion in the entrepreneurial community.
Khandelwal, who also serves as the Secretary General of the Confederation of All India Traders (CAIT), supported Goyal’s concerns about the direction in which Indian startups are heading. He argued that the Union Minister had raised valid questions about the long-term priorities of the startup ecosystem in India, particularly regarding innovation and its alignment with national interests.
Union Minister Questions Startup Vision at Major Event
The controversy began on Thursday when Commerce and Industry Minister Piyush Goyal addressed the 'Startup Mahakumbh' event. In his speech, Goyal questioned whether Indian startups, especially those in the food delivery sector, were genuinely building future-ready innovations.
"Are we going to be happy being delivery boys and girls? Is that the destiny of India? This is not a startup, this is entrepreneurship," Goyal stated. He highlighted the technological strides made by Chinese startups in areas like robotics, machine learning, 3D printing, and next-generation factories, contrasting them with India’s growing but service-centric startup scene. His presentation included a slide titled ‘India vs China: The Startup Reality Check.’
Goyal acknowledged that his statements might attract criticism but remained firm. “I have no objections. We have to be willing to learn, evolve... aspire for bigger and better. We have to be bolder and we should not shy of competition,” he said.
Zepto CEO Responds With Key Metrics
Aadit Palicha, the CEO of Zepto — a prominent grocery delivery app — responded publicly to Goyal’s remarks. Defending his company's business model, Palicha pointed out that Zepto had created over 1.5 lakh jobs, contributed more than ₹1,000 crore in annual taxes, and attracted over $1 billion in foreign direct investment (FDI).
Palicha's statement, however, did not go down well with Khandelwal. He argued that the CEO had failed to grasp the deeper intent of the Minister’s message.
Khandelwal Calls for Nation-Driven Innovation
Khandelwal emphasised that job creation and tax contributions alone do not equate to meaningful innovation. “Claiming to create jobs and pay taxes while burning foreign capital to dismantle India’s small neighbourhood kirana stores is not innovation. This approach is not aligned with India’s long-term strategic interests,” he said.
He further added, “Innovation must serve the nation, not just convenience. We need startups that solve real problems and build foundational technologies to drive India's future.”
Khandelwal also stressed that Indian startups must focus on developing core technologies that contribute to national self-reliance and global leadership, rather than chasing rapid commercial gains that undercut traditional businesses.
Startup Mahakumbh Highlights India's Vision for 2047
The Startup Mahakumbh event, held from April 3 to 5, brought together leaders from across India’s entrepreneurial ecosystem. Organised by Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with Associated Chambers of Commerce and Industry of India (ASSOCHAM), Indian Venture and Alternate Capital Association (IVCA), National Association of Software and Service Companies (Nasscom), Bootstrap Foundation, and other stakeholders, the event was supported by the National Startup Advisory Council (NSAC), Department for Promotion of Industry and Internal Trade (DPIIT), and Startup India.
This year’s theme centered around the long-term vision for India’s startup landscape, with a goal of shaping a self-reliant and innovative “Viksit Bharat” (Developed India) by 2047.
As the debate continues, Goyal’s comments have drawn both criticism and support, but they have undeniably reignited discussion on whether Indian startups are building short-term convenience or laying the foundation for technological transformation.
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