[India Minister Sparks Controversy by Urging Startups to Create Technology Like China Instead of Ice Cream]

(Reuters) —— India's commerce minister said that Indian startups need to emulate China and focus on high-end technology instead of fast grocery delivery or fancy ice cream, a harsh criticism that quickly drew pushback from entrepreneurs highlighting the government's shortcomings.

Prabodh Goyal, late Thursday evening at an entrepreneurship event in New Delhi, said too many companies offer food delivery services so that "the rich can eat without going out" and "turn unemployed youth into cheap labor."

"Would we be happy to be delivery boys? Beautifully crafted ice cream and cookies... is this the destiny of India?" he said as he displayed a slide titled "India vs. China: Reality Check for Startups."

He did not name any companies, but his remarks were seen as a clear attack on quick-commerce firms such as Zomato, Swiggy, and Zepto, which can deliver food and groceries within 10 minutes.

"What are Chinese startups doing? Focusing on developing electric vehicles, battery technologies... look at what the other side is doing – robotics, automation, machine learning, preparing for 3D manufacturing," Goyal said.

His comments sparked hundreds of startup founders and venture capitalists to post on social media, criticizing the government for failing to create quality infrastructure and job opportunities and for not providing enough support for entrepreneurs.

Aadit Palicha, co-founder of Zepto, fired back on X: "The government needs to actively support nurturing these homegrown champions rather than dragging them down."

Swiggy and Zomato have not yet responded to requests for comment.

Mohandas Pai, chairman of risk fund Aarin Capital, wrote on X: "Ministers should not belittle our startups; they should ask themselves what they have done as ministers to help deep-tech startups grow in India."

In 2024, Indian startups raised $11.3 billion in venture capital funding, a 43% increase from last year.

Original Source: https://www.toutiao.com/article/1828486637172867/

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