Startups push back as Zepto’s Aadit Palicha and Mohandas Pai counter Goyal’s ‘reality check’ remarks

Zepto co-founder Aadit Palicha is the latest startup founder to push back against Union Minister Piyush Goyal’s recent criticism of Indian startups, arguing that consumer internet companies like his are driving real innovation, employment, and economic value—even if they aren’t deep-tech giants yet. His response comes after Goyal questioned whether India’s startup ecosystem is focusing enough on high-value sectors like AI and semiconductors.

Palicha’s Fiery Defense: "If This Isn’t Innovation, What Is?"

Taking to X (formerly Twitter), Palicha highlighted Zepto’s impact: 1.5 lakh jobs created, ₹1,000+ crore in annual taxes, and $1 billion+ in FDI—all in just 3.5 years.

"We’ve invested hundreds of crores in organizing India’s chaotic supply chains, especially for fresh produce," he wrote. "If that isn’t a miracle in Indian innovation, I don’t know what is."

He also challenged the minister Goyal's deep-tech focus, pointing out that global tech giants like Amazon, Google, and Alibaba began as consumer internet firms first before pioneering AI and cloud computing.

"India won’t build foundational AI models until we first create dominant internet companies," he argued, urging the government and investors to back homegrown startups instead of "pulling them down."

Piyush Goyal’s "Reality Check" for Startups

At Startup Mahakumbh 2025, Goyal had called for a shift toward "value-adding" sectors, noting that India has only ~1,000 deep-tech startups—a "disturbing" gap compared to China’s focus on semiconductors and AI.

"We need to think global and prioritize long-term sustainability over short-term wealth creation," he said.

Industry Backlash: Pai, Grover Hit Back

Palicha wasn't the only one to push back, however. Immediately after Goyal's comments became public, Mohandas Pai, ex-Infosys board member, also took to X to express his displeasure.

"Don’t belittle our startups. What has the government done to foster deep-tech?"

He also criticized Finance Minister Nirmala Sitharaman and the RBI for "failing to support startups."

Ashneer Grover, never one to mince words, also tweeted: "The only people needing a ‘reality check’ are politicians." Drawing parallels to China’s evolution from food delivery to deep-tech dominance, he added: "Maybe politicians should focus on delivering 10% GDP growth for 20 years before chiding job creators."

The Big Picture: India’s Startup Identity Crisis

This debate unleashed by Goyal comes at a critical time in India's startup ecosystem. With China already taking a massive step ahead in the AI race, with the deployment of DeepSeek, intense focus has come on India to develop its own indigenous AI model. It also underscores a growing dilemma that startups from India are increasingly finding themselves in: Should India prioritize quick-scaling consumer startups (Zepto, Swiggy) or riskier deep-tech ventures (AI, space tech)?

Palicha’s stance is clear: "You need strong internet companies first to fund and fuel future tech revolutions."

But with global competition intensifying, Goyal’s push for higher ambitions isn’t likely to fade.