Indian Entrepreneurs Defend Startup Ecosystem After Minister Piyush Goyal's Remarks Spark Debate
India’s startup ecosystem came under the spotlight this Friday (April 4, 2025), following remarks by Commerce Minister Piyush Goyal that triggered a heated debate within entrepreneurial and political circles. Goyal’s comments, interpreted by some as a critique of the sector’s innovation and global competitiveness, drew strong reactions from several prominent Indian entrepreneurs, who rallied in defense of the country’s startup prowess.
Zepto Co-Founder and CEO Aadit Palicha, one of the youngest and most recognisable figures in the Indian startup landscape, called India’s startup story a “miracle in Indian innovation.” He cited Zepto’s contribution to employment and foreign direct investment (FDI) and urged stakeholders to focus on building local champions rather than pulling down those striving to make a difference.
“The startup ecosystem, the government, and capital owners in India must work together to support innovation-driven growth,” Palicha wrote on social media.
Zoho founder Sridhar Vembu offered a more nuanced interpretation of Goyal’s comments, seeing them as a challenge rather than criticism. “What we need are smart engineers who roll up our sleeves and get it done,” Vembu posted. He emphasized the importance of strategic innovation and prudent investment in deep-tech, comparing it to the difference between paying for vitamins and a cancer cure.
Meanwhile, Goyal clarified his comments, blaming the Congress party for deliberately misrepresenting his statements from the recent Startup Mahakumbh. Speaking to reporters, he said, “My message for startups has been received positively by young entrepreneurs. Only certain Congress social media handles have tried to twist it into a controversy.”
In a post on X, the Congress alleged that Goyal had "admitted India's startup struggles" and accused him of undermining Prime Minister Narendra Modi’s narrative around India's thriving startup culture.
Reacting to the growing controversy, former Infosys CFO and venture capitalist Mohandas Pai urged the government to maintain faith in India’s startup potential. “Ministers should help deep-tech startups by reducing barriers. We have promising startups here too, though not as large as China’s yet,” Pai said.
Anupam Mittal, Shark Tank India judge and founder of Shaadi.com, also voiced support for Indian innovation. Sharing his recent experiences, Mittal wrote, “In the last few months, I’ve met deep-tech companies in AI, space tech, and material science that have blown me away. The innovation is there, but what’s missing is capital and a supportive ecosystem to scale.”
The episode has sparked a larger conversation about how India’s burgeoning startup ecosystem is perceived by policymakers and what steps are needed to foster a more conducive environment for innovation and growth.
