Startup leaders push back after Piyush Goyal’s critique of India’s innovation focus

India’s startup community has pushed back strongly after Union Minister Piyush Goyal criticised the direction of the country’s startup ecosystem. Despite being the world’s third-largest, Goyal questioned whether Indian startups are prioritising short-term ventures like food delivery and fantasy sports over critical technologies such as electric vehicles and artificial intelligence.

Also Read: Bengaluru startups face heavy losses despite unicorn boom

“Do we just want to do shopkeeping?” Goyal asked, pointing to the more tech-driven focus of Chinese startups.

His remarks sparked sharp responses from industry veterans. Mohandas Pai, former Infosys CFO and a key startup investor, called the comparison with China “unfair” and accused government policies of stifling deep tech growth in India. He pointed to regulatory hurdles, an unsupportive financial system, and the lack of investment incentives for long-term innovation.

“Why blame startups?” Pai asked on social media, challenging Goyal to reflect on his own role in enabling tech innovation.

Echoing Pai’s frustration, Ashneer Grover, co-founder of BharatPe, criticised Goyal for being disconnected from the entrepreneurial reality. “The only people in India who need a ‘reality check’ are its politicians,” he said.

The exchange has reignited the debate around India's innovation strategy and the role policymakers must play in fostering a more robust and future-facing startup environment.