Defending Indian Startups: Karan Chawla Responds to Piyush Goyal

Karan Chawla, the co-founder of Gaonzy, has firmly responded to the remarks made by Commerce Minister Piyush Goyal, who recently expressed concerns regarding Indian startups. Chawla defended the consumer technology sector and emphasized the government’s role in fostering deep-tech innovation.

At the Startup Maha Kumbh event in Delhi, Goyal questioned the focus of Indian startups, stating, “Do we have to make ice cream or chips? Dukaandari hi karna hai?” He criticized the current startup landscape for prioritising consumer technology rather than focusing on hard technology. Goyal also pointed out that there are “only 1,000 startups in India’s deep-tech space,” labelling this a “disturbing situation.”

In a pointed LinkedIn post, Chawla challenged the narrative: “But let’s ask the right questions.” He remarked, “When Reliance develops retail, it’s termed innovation. When Tata introduces quick commerce, it’s seen as vision. But when young entrepreneurs establish platforms like Zepto, Swiggy, or Flipkart, they are merely branded ‘dukaandari’?”

Chawla argued that the problem extends beyond what startups choose to create; it is a reflection of the systemic failures in support mechanisms. “It’s easy to draw comparisons between Indian startups and their counterparts in China or the US. Yet, China didn’t nurture entities like Huawei and BYD by merely encouraging youth to ‘do better’. It accomplished this through state support, domestic procurement policies, and access to global capital.”

He identified significant systemic gaps, stating, “India’s deep-tech sector is rich in talent but poor in institutional backing, long-term capital, and a clear policy framework. The same framework that imposes Angel Tax on startups and restricts access to local institutional funding now expects founders to take enormous risks?”

In defence of consumer-focused startups, he remarked: “We take pride in creating dukaans that not only provide employment but also develop logistics systems, support micro, small, and medium enterprises (MSMEs), and enhance customer satisfaction. Not all revolutions are about AI chips; some progress happens incrementally, one doorstep at a time.”

Chawla raised further thought-provoking inquiries: “Why have our major industrial players not developed equivalents to companies like Stripe, NVIDIA, or Tesla? Why is there a lack of globally recognised deep-tech products emerging from our public sector undertakings (PSUs)? Why are major institutions like LIC and SBI not investing in deep-tech venture capital?”

He issued a direct challenge to the status quo: “India’s startup ecosystem has contributed significantly to Bharat’s economy over the past decade, surpassing many traditional institutions in impact across generations. So yes, dukaandari hi karni hai. This generation is not embarrassed to create employment, address everyday dilemmas, or innovate rapidly. The real question remains — will the system support our endeavours?”

Meanwhile, Goyal introduced a startup helpline as part of the Startup India initiative, allowing entrepreneurs to report incidents of corruption, propose legal reforms, or raise complaints. “If entrepreneurs are confident they have operated within the law, they are encouraged to voice their concerns through this helpline,” he stated.