In response, Mohandas Pai, former Chief Financial Officer of Infosys and a prominent figure in the Indian tech industry, challenged Goyal's assertions. Pai questioned the minister's role in fostering an environment conducive to deep-tech growth, pointing out that while India has numerous small deep-tech startups in areas such as chip design, IoT, robotics, and EV charging, they often face significant challenges in securing capital. He contrasted India's investment landscape with that of China, noting that between 2014 and 2024, China attracted $845 billion in startup investments, whereas India garnered only $160 billion.
Pai further criticized the regulatory environment, citing issues such as the Angel Tax, which he claimed has historically harassed startups, and restrictions preventing endowments and insurance companies from investing in startups, practices that are common globally. He also highlighted the Reserve Bank of India's stringent foreign exchange rules, which he argued deter overseas investors. Pai called on Goyal and other ministers to address these systemic issues to better support the startup ecosystem.
Aadit Palicha, CEO of quick-commerce platform Zepto, also responded to Goyal's comments, emphasizing the tangible impact of consumer-tech startups. Palicha noted that Zepto has created employment opportunities for approximately 150,000 individuals, arguing that building companies that solve real problems at scale is a form of technological innovation. He called for more government support and long-term capital investment to help Indian startups evolve into global players.
Ashneer Grover, former co-founder of BharatPe, joined the discourse by suggesting that politicians, rather than entrepreneurs, need a reality check. He pointed out that China's tech evolution also began with consumer-focused services before advancing into deep-tech sectors. Grover advocated for a shift in public discourse from historical topics to scientific and technological advancements.
Sridhar Vembu, CEO of Zoho Corporation, offered a strategic perspective, recommending a balanced approach where startups generate revenue through current offerings while simultaneously investing in deep-tech research. He likened this strategy to "shipping vitamins while curing cancer," suggesting that sustaining business operations can support long-term innovation efforts.