BJP MP Khandelwal criticizes Zepto CEO; says, 'burning foreign capital to dismantle kirana stores is not innovation'

BJP MP Praveen Khandelwal criticized Zepto CEO Aadit Palicha's response to Union Minister Piyush Goyal's "Dukaandari remark'. Speaking at the second Startup Mahakumbh, Piyush Goyal questioned whether India is focusing too heavily on ventures like food delivery and fantasy sports apps instead of emerging deep-tech fields.

Goyal compared India's startup culture to that of China, which he said is investing heavily in electric vehicles, battery technology and AI.

He urged local startups to “re-evaluate their purpose and true value” and to “think big” and “go global,” noting there are only about 1,000 deeptech startups in India—a figure he called “a disturbing sign.”

"We must learn (from other countries). We must be willing to evolve, we have to be able to learn, we want to aspire to be bigger and better and bolder. And we should not shy of the competition," the minister said. 

"Dukaandari hi karna hai (Do we want to just sell things)?" he asked.

Palicha, in response, argued that consumer-facing internet businesses lay the groundwork for large-scale innovation, noting that Amazon, Google, and Alibaba all started out in consumer internet before evolving into major players in AI and other advanced technologies. He said that consumer internet companies have the "best data, talent, and capital to put behind it." 

"Why doesn’t India have its own large-scale foundational AI model? It’s because we still haven't built great internet companies," he wrote, emphasizing the need for homegrown tech startups that generate substantial free cash flow and reinvest in cutting-edge research. 

Palicha also pointed to Zepto's own rapid rise—employing roughly 150,000 people in just over three years—as an example of "a miracle in Indian innovation."

BJP MP Praveen Khandelwal criticizes

Khandelwal expressed that the Minister Piyush Goyal raised a genuine concern on the focus areas of Indian startups, and Aadit Palicha missed the essence of his comments in being defensive.

"Claiming to create jobs and pay taxes while burning foreign capital to dismantle India's small neighborhood kirana stores is not innovation. This approach is not aligned with India's long-term strategic interests," the BJP MP said.

"Innovation must serve the nation, not just convenience. We need startups that solve real problems and build foundational technologies to drive India's future," Khandelwal said.

Meanwhile, Shark Tank India judge Aman Gupta also agreed to Piyush Goyal's comment. The boAt co-founder welcomed the government’s call to “dream bigger.”

In a post on X, Gupta said Goyal “believes in us” and emphasized that benchmarking Indian startups against global peers—whether in China or the U.S.—is “smart strategy.”

Honored to join Hon. PM @narendramodi , President @EmmanuelMacron , and global leaders at the CEO Forum with the backdrop of AI Action Summit—representing boAt Lifestyle, Make in India, and our startup ecosystem on the global stage 🇮🇳🙏🏻

Here’s what I shared:

1. With over… pic.twitter.com/AZpnG0WIME

— Aman Gupta (@amangupta0303) February 13, 2025

"It’s not every day that the government asks founders to dream bigger...Hon. Minister @.PiyushGoyal Ji isn’t against founders. He believes in us.His point was simple: India has come far, but to lead the world…we need to aim higher," he wrote.