New Delhi: In case you are looking to find ways to destroy your own event, take a masterclass from Union Commerce Minister Piyush Goyal, who put mouth in foot over a government event related to startups.
The second edition of Startup Mahakumbh, India’s flagship event for innovation and entrepreneurship, held at Bharat Mandapam in New Delhi, was overshadowed by a brewing controversy following the minister’s unwanted and mischievous comments.
The controversy was further amplified by the govt’s standee displaying comparing Indian and Chinese startups right at the entrance of the event venue.
Prominent industry leader Mohandas Pai shared a picture of the standee on X and called out Goyal for what he describes as the promotion of "Chinese propaganda" at an event meant to celebrate Indian innovation.
The contentious standee juxtaposed India and China under the heading "India vs. China: The Startup Reality Check."
It painted a starkly unflattering picture of Indian startups, labeling their contributions as "Food Delivery Apps," "Fancy Ice Creams & Cookies," and "Marketed as 'Healthy'" products, while praising Chinese startups for their work in "EV Battery Tech," "Semiconductors & AI," and "Robotics & Automation."
The display further highlighted China's strengths in "Hyper Fast Logistics" and "Massive Scale," while dismissing India's startup ecosystem as lacking in deep tech innovation and global competitiveness.
Pai, a well-known venture capitalist and former CFO of Infosys, slammed Goyal and said, "This is at Startup Mahakumbh in Delhi. Minister @PiyushGoyal, why are the organisers pushing Chinese propaganda against India?"
He pointed out that India is home to over 4,500 deep tech startups, as per data from Traxn, but these companies remain small due to a lack of capital and funding—a systemic issue that Goyal, as the Union Minister of Commerce and Industry, has failed to adequately address.
Ajeet Bharti, a prominent journalist, took to X to express his disagreement, calling Goyal’s statements “peculiar” and inconsistent with the government’s own policies.
In his post, Bharti wrote, “The minister’s claim that delivery apps are exploiting ‘cheap labor’ is strange. The same government then counts these jobs in its employment statistics—why the contradiction?”
He argued that portraying such apps as mere tools for the rich is disconnected from reality, pointing out that most products and services, by their nature, cater to those who can afford them. “Will they say tomorrow that car companies are making cars so the rich can reach home faster? What kind of logic is this?” Bharti questioned.
Bharti further challenged Goyal’s emphasis on “healthy” products, asking why the government continues to profit from taxes on alcohol and tobacco if health is such a priority.
“Alcohol must be very healthy then, since every government earns tax from it? Why can’t they ban cigarettes if they’re so concerned about health?” he wrote, directly addressing the minister.
He accused the government of using such statements to appear forward-thinking, while failing to create an environment conducive to genuine innovation.
“This government exhausts the youth by repeatedly explaining technical matters to foolish secretaries and equally foolish ministers in the ministries. It shouldn’t be giving advice on batteries, EVs, robotics, and automation,” Bharti added.
The journalist also criticised the government’s track record on fostering innovation, claiming it lags behind by a decade.
“This government is doing a lot, but it hasn’t done anything yet to be in a position to give advice. Starting AI competitions or building a local browser isn’t called promoting innovation. You’re ten years behind,” he concluded.
Goyal’s remarks gave opposition Congress an opportunity to prove their point that Startup India is just an eyewash.
Goyal on Thursday asked the Indian startup community to shift their focus from grocery delivery and ice cream making to high-tech sectors like semiconductor, machine learning, robotics, and artificial intelligence. The minister had questioned Indian food delivery startups for turning unemployed youth into cheap labour.
"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... What other side is doing -- robotics, machine learning, 3D manufacturing and next generation factories," Goyal said on Thursday, comparing the nature of Indian startups with that of Chinese.
Several Indian entrepreneurs on Friday rallied in unison after Commerce Minister Piyush Goyal questioned the Indian startup ecosystem's value and innovation proposition, as prominent names such as Zepto CEO Aadit Palicha and Zoho founder Sridhar Vembu voiced their opinion on the issue that has stirred quite a debate in the startup circles.
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