Mohandas Pai Defends Indian Start-Ups Against Minister Goyal’s Criticism

Former Infosys CFO Mohandas Pai on Thursday countered Union Minister Piyush Goyal’s criticism of the Indian start‑up ecosystem.

Speaking at the inaugural ceremony of the second Startup Mahakumbh, Minister Piyush Goyal sharply criticised the nature of start‑ups being launched in India compared to those in China, urging Indian start‑ups to re-evaluate their purpose. His remarks sparked an online debate about the strengths and weaknesses of the Indian start‑up ecosystem, with many weighing in on what should be prioritised in the journey of entrepreneurial growth in the country.

Pai also participated in the discussion, shifting the focus onto the government. He pointed out that although India boasts numerous start‑ups in sectors such as IoT, robotics, EV charging and battery management systems (BMS), these companies often struggle to secure sufficient government support to sustain and flourish.

Also Read: India Needs More Domestic Capital to Retain Ownership of Start-Ups: Piyush Goyal

Goyal’s Criticism

During his speech, Goyal remarked that while many Indian entrepreneurs appeared overly focused on ventures like food delivery, betting and fantasy sports apps, their Chinese counterparts were dedicating efforts to industries such as EVs, battery technology, semiconductors and AI.

He questioned whether India was content with an economy built on low‑wage gig work rather than one that drives technical advancement. "Do we have to make ice cream or chips? Dukaandari hi karna hai (Do we want to just sell things)," he asked.

Urging start‑ups to re‑evaluate their purpose and drawing parallels with the start‑up landscape in China, which he claimed was leading the way in AI and technology, Goyal said Indian start‑ups need a reality check.

Also Read: Start-Ups Should Focus on Omni Customers, Says Lenskart Founder Peyush Bansal

Pai’s Response

In an X post, Pai wrote, “Goyal should not belittle our start‑ups but ask himself what has he done as our Minister to help deep tech start‑ups grow in India? It is easy to point fingers at them. We have a hostile Finance Minister who harassed start‑ups on Angel tax for many years, do not allow endowments to invest, insurance cos still do not invest whereas they do globally.”

Pai also pointed out that India is home to numerous rapidly growing deep tech start‑ups in sectors such as chip design, IoT, robotics, EV charging and battery management systems (BMS), yet they are constrained by a lack of capital. He noted that between 2014 and 2024, Indian start‑ups received $160 billion in funding, compared to $845 billion in China and $2.3 trillion in the US.

He added that long‑term investors, including endowments and insurance companies, remain hesitant to invest. The alternative investment fund (AIF) flows have diminished due to regulatory overreach, while overseas investors are harassed by the RBI over remittances. Additionally, although the technology for fast charging EV buses exists, the majority of buses are operated by public sector undertakings (PSUs), which are often resistant to change.