Former Infosys CFO Mohandas Pai has strongly reacted to Piyush Goyal’s recent take on Indian startups. Speaking at Startup Mahakumbh, Goyal criticised the direction of Indian entrepreneurship, especially in the quick commerce space, asking, “Dukhandari ka hi kaam karna hai ya vishwavyapi aur international scale par Bharat ki pehchaan banani hai? [Are we just doing shopkeeper’s work, or are we aiming to build India’s identity on a global scale?]” He contrasted Indian startups with those in China, which he claimed are focused on deep tech and innovation.
Many, including Mohandas Pai, have fired back at Goyal. Pai said that India does have “many deep tech startups” like China but questioned the government’s support, asking, “Where is the capital?”
“There are very many small deep tech startups in chip design, IOT, Robotics, EV charging, BMS in India, growing rapidly but where is the capital?” asked Mohandas Pai on X (formerly Twitter) as he tagged Minister of Commerce and Industry, Piyush Goyal.
He went on to draw a sharp contrast in global startup funding: “Indian startups got 160b $ from 2014/24, China 845b$, US 2.3Tr$. Long term investors like endowments, insurance still do not invest despite your efforts!” urging Goyal to improve the situation.
The chairman of Aarin Capital called for more proactive involvement of the government in helping startups grow. “AIF investments are facing regulatory overreach, and the flow has come down. RBI harasses overseas investors on remittances,” the Bengaluru-based Padma Shri Awardee said.
He also highlighted the challenges deep tech startups face in scaling in India. “How do you sell to these dinosaurs?” he asked, pointing out that India already has technology for fast-charging electric buses, but most are operated by public sector undertakings (PSUs), making the adoption of the technology sluggish.
What did Piyush Goyal say at Mahakumbh?
Pai’s remarks came in response to Goyal’s speech at the second edition of the Startup Mahakumbh, where the minister delivered a blunt comparison between Indian and Chinese startup ecosystems. The Minister said that while Indian startups are providing convenience at the cost of cheap labour, Chinese startups are investing in cutting-edge technologies like artificial intelligence (AI) and innovative mobility.
“We are very proud of what India has done, but are we the best in the world as yet? Not yet,” Goyal said. “We are focused on food delivery apps turning unemployed youth into cheap labour so the rich can get their meals without moving out of their house. And what does a Chinese startup do? They work on developing electric mobility battery technologies and they are today dominating the electric mobility ecosystem.”
He added that he has no complaints against Indian startups, but went on to ask if that is the “vision of India”.
“Is India’s future satisfied? China, on the other hand, is developing semiconductor and investing heavily in AI models, which will prepare the nation for the future. So, what does India want to make? Ice cream or semiconductor chips?” he added.
Goyal further said, “We may do all sorts of international trade agreements (with top countries) and have ambitions to compete with the best in the world, but I can’t take grocery stores to them and say this is India’s offering for startups.”
India vs China startup reality check
At a time when China is dominating the global landscape with advancements in electric vehicle production, semiconductor development, AI models, next-generation manufacturing, space technology, high-speed rail, and renewable energy, Goyal said that India is still exploring the quick commerce space.
He criticised the current trajectory of some Indian startups, saying the country is “turning unemployed youth into cheap labour to deliver meals to the rich people, so they don’t have to move”. Goyal also took aim at gourmet ice creams and cookies marketed as “healthy”, and instant grocery delivery apps, which he claimed are fostering a culture of laziness and impatience.
Goyal also expressed concern over betting platforms and fantasy sports apps, which he believes promote gambling and addiction. He also criticised influencers for contributing to what he described as a “growing culture of mindless entertainment”.