India minister triggers uproar after telling startups to create tech like China, not ice cream

By Praveen Paramasivam

(Reuters) – India’s commerce minister said his country’s startups needed to emulate China by focusing on high-end tech and not quick grocery deliveries or fancy ice cream – harsh criticism that had entrepreneurs quickly pointing out the government’s shortcomings.

Piyush Goyal told a startup event in New Delhi late on Thursday that too many were offering food delivery so that “the rich can get their meals without moving out of their house” and were “turning unemployed youth into cheap labour.”

“Are we going to be happy being delivery boys and girls? (Making) fancy ice cream and cookies … is that the destiny of India?” he said, showing a slide titled “India vs. China. The Startup Reality Check”.

He didn’t name companies but his speech was seen as an apparent attack on quick commerce businesses like Zomato, Swiggy and Zepto that deliver food and groceries in as little as 10 minutes.

“What do the Chinese startups do? Work on developing electric mobility, battery technology … look at what the other side is doing – robotics, automation, machine learning, preparing themselves for 3D manufacturing,” Goyal said.

His comments prompted hundreds of posts on social media from startup founders and venture capitalists, taking the government to the task for failing to create high-quality infrastructure and jobs and not doing enough to support entrepreneurs.

“The government (needs) to actively support the creation of these local champions, not pull down the teams,” Zepto co-founder Aadit Palicha retorted on X.

Swiggy and Zomato did not respond to requests for comment.

“Minister @PiyushGoyal should not belittle our startups but ask himself what has he done as our Minister to help deep tech start ups grow in India?,” Mohandas Pai, chairman at venture fund Aarin Capital, wrote on X.

Indian startups raised $11.3 billion in venture capital funding in 2024, up 43% from last year.

(Reporting by Praveen Paramasivam in Chennai; Editing by Aditya Kalra and Edwina Gibbs)