At the Startup Maha Kumbh, Union commerce minister Piyush Goyal delivered a searing critique of India's startup ecosystem.
"Do we have to make ice cream or chips? Dukaandari hi karna hai?" he asked.
His point was that Indian startups are too fixated on food delivery and gig economy jobs, while our Chinese counterparts are advancing in EVs, semiconductors and AI.
The commerce minister’s words painted a picture of stagnation: A country content with being "delivery boys and girls."
Industry leaders didn’t take kindly to the slight.
Zepto CEO Aadit Palicha called out the government for pulling down startups instead of backing “local champions” who generate billions.
Former Infosys executive Mohandas Pai was more scathing: “What has Piyush Goyal done to help deep-tech startups grow? It is easy to point fingers.”
The criticism wasn't just about misplaced priorities.
Goyal’s analogy struck a raw nerve because the government itself has repeatedly glorified small-scale, low-investment businesses as a solution to unemployment.
The Pakoda politics
If Indian startups are being mocked for prioritising food delivery, who popularised the idea of pakoda-selling as economic empowerment?
In 2018, PM Narendra Modi argued that a pakoda seller earning Rs 200 a day was still "employed"—sparking the term 'Pakodanomics'.
BJP leaders like Amit Shah doubled down: "It is better to sell pakodas than remain unemployed. When a tea-seller can become Prime Minister, who knows, a pakoda seller might become an industrialist!"
Meanwhile, West Bengal CM Mamata Banerjee in 2022 encouraged young entrepreneurs to start small with tea, biscuits, and fritters. "Even making fritters (chop in bangla) can be turned into an industry," she said, while countering joblessness allegations.
Critics accused her of trivialising unemployment.
But the irony is hard to miss here: India’s top political leaders have endorsed food stalls as job creators, yet Goyal now ridicules food delivery startups for not dreaming big enough.
Startups are booming—just not on the minister’s terms
Goyal’s criticism also ignores key realities.
According to startup tracker Traxcn, India is the third-largest startup hub globally, trailing only the US and China.
Bengaluru alone boasts 49 unicorns, followed by Gurugram (19) and Mumbai (17). Consumer tech startups—like food delivery—lead the way, but sectors like enterprise applications and retail are also thriving.
Moreover, food delivery giants like Zomato and Swiggy aren’t just about home deliveries for the lazy rich, as Goyal implied.
These firms have attracted billions in foreign investment, paying over Rs 1,000 crore in taxes annually.
Former BharatPe cofounder Ashneer Grover minced no words: "The people who need a reality check in India are politicians. China also started with food delivery before evolving into deep-tech. Maybe it’s time for politicians to aspire for 10%+ economic growth before chiding job creators."
The right questions, the wrong approach
"What are India's startups of today? We are focused on food delivery apps, turning unemployed youths into cheap labour so the rich can get their meals without moving out of their house," Goyal said.
Calling for a focus on innovation beyond e-commerce, Goyal pointed out that there were only a limited number of deep-tech startups in India.
To be fair, Goyal isn’t entirely wrong to push for more investment in deep tech, AI and semiconductors. India does need a stronger presence in these high-value industries.
But his sweeping generalisation of startups as “Dukandari-hi” undermines their contributions.
The real question isn’t why startups are focusing on food delivery—it’s why India’s policies haven’t nurtured deep-tech growth the way China has.
If food delivery is a joke, why was selling pakodas ever considered serious economic policy?