Commerce and Industry Minister Piyush Goyal announced on Friday that rapid-commerce companies, including Blinkit, which recently initiated a 10-minute ambulance service, must adhere to local regulations. Blinkit launched this pilot scheme in select areas of Gurugram, allowing users to request an ambulance directly through the Blinkit app, as stated by the company.
Goyal stressed the significance of legal compliance, declaring, “Regarding Blinkit providing ambulance services or delivering medication, my key message is that they must ensure compliance with the law of the land and meet all legal requirements without contravening any regulations.”
In response to concerns raised by small retailers about quick-commerce and e-commerce companies, he stated that the government is closely monitoring the situation. The Competition Commission of India (CCI) has intervened in specific instances where anti-competitive behaviours were identified. Goyal remarked, “To my knowledge, there have been investigative actions against some firms that breached laws and exploited them.”
Addressing inquiries about the significant drop in valuations for certain unicorn startups, he noted that such occurrences are rare, stating, “We have been observing the landscape but have not discovered many such cases.” He reiterated that market forces dictate these valuations and that government intervention does not play a role in this matter. “We did not step in when Zepto attained unicorn status in less than three years, nor did we interfere when certain values fell due to factors like mismanagement or financial imprudence,” he elaborated.
Furthermore, Goyal mentioned that in instances of financial mismanagement or inefficient management practices, “we have pinpointed these cases and asked the National Startup Advisory Council to investigate the causes and recommend guidelines for auditors. These guidelines aim to inform all startups of potential pitfalls and encourage investors to be vigilant. The council has made substantial strides in this regard.”
Electric vehicle (EV) companies are united in their belief that subsidies will not be necessary once the current regime concludes. The Department for Promotion of Industry and Internal Trade (DPIIT) established a council in January 2020 to aid the government in cultivating a robust ecosystem for innovation and startup growth in India.
Commenting on the trend of startups returning to India, Goyal expressed his contentment, stating, “It is genuinely a positive advancement that many startups are choosing to register and establish themselves back in India.” He attributed this trend to the government’s decisive leadership and proactive policies, positioning India as an attractive venue for investments. Goyal pointed out that the Indian stock market ranks among the world’s top performers, consistently generating positive returns.
He welcomed input on any necessary measures to assist the return of startups to India, stating, “Startup India has numerous funds, and budget allocations have been earmarked for prior distributions to SIDBI.” He added, “As such, there is no need for an annual allocation. SIDBI is the operating agency and continues to oversee fund disbursement, with Rs 1,600 crore recently returned to SIDBI’s corpus.”
Goyal affirmed India’s capability to support additional data centres, highlighting the country’s advantageous ecosystem for such infrastructure. “India is now a global investment hub due to government policies, with substantial investments either currently realised or in the pipeline, as everyone aims to invest in billions rather than millions.”
