Companies defend India’s startup proposition after Piyush Goyal’s jibe stirs debate

Indian entrepreneurs unite to defend startup ecosystem against criticism, emphasizing the need for local champions and innovation support.

Several Indian entrepreneurs on Friday (April 4, 2025) rallied in unison after Commerce Minister Piyush Goyal questioned the Indian startup ecosystem's value and innovation proposition, as prominent names like Zepto CEO Aadit Palicha and Zoho founder Sridhar Vembu voiced their opinion on the issue that has stirred a debate in the startup circles.

Palicha - one of the most recognised faces in the startup circles and the cofounder of Zepto - cited the quick commence company's contribution to jobs and FDI, and termed it a "miracle in Indian innovation".

He underscored the role played by consumer internet companies in pushing technology-led innovation.

The young founder argued that the startup ecosystem, government, and owners of large pools of Indian capital need to actively support the creation of "local champions" and "not pull down the teams that are trying hard to get there".

Zoho's Vembu saw the minister's call as a challenge to engineers and technologists and not as pointing fingers.

"What we need are smart engineers who roll up our sleeves and get it done. Keep in mind the vitamins and cancer cure argument - sequencing how we pay for our big tech ambition is very much part of the engineering problem that smart engineers must solve! We can do this," Vembu said in a social media post.

Meanwhile, Goyal talking to reporters on Friday accused Congress of misleading Indian startups by misinterpreting his message at the Startup Mahakumbh, which was taken positively by the budding entrepreneurs.