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In today’s newsletter:

• Piyush Goyal kicks up a storm
• Why Sachin Bansal was an unhappy billionaire 
• Indian IT on shaky wicket after Trump tariffs

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Heated debates erupted within India’s startup ecosystem after Union Minister Piyush Goyal questioned its level of innovation, drawing comparisons to China. 

• His remarks prompted strong pushback from industry leaders

Speaking at the Startup Mahakumbh on April 3, Union Commerce Minister Piyush Goyal criticised Indian startups, particularly food delivery platforms, for lacking innovation. 

• He said they were turning unemployed youth into cheap labour

He questioned whether India should be content with delivery jobs while China advances in deep tech sectors like semiconductor chips and EV batteries

Also read: Indian startups began to walk despite the system; to fly they need support

Goyal's remarks were met with strong rebuttals from startup leaders. 

• Zepto CEO Aadit Palicha countered by highlighting Zepto’s job creation, tax contributions, and its role in attracting over $1 billion in foreign investments. 

• Ashneer Grover, former BharatPe chief, pointed out that China also began with consumer services before evolving into deep tech. He urged policymakers to focus on long-term economic growth instead of criticising entrepreneurs

Also read: Mohandas Pai counters Piyush Goyal's attack: What has he done to help deep tech startups in India?

While many founders defended consumer internet businesses, others emphasised the need for better government support. 

• Shaadi.com’s Anupam Mittal argued that India’s deep tech ecosystem lacks sufficient funding and infrastructure 

However, some leaders, including Bhavish Aggarwal of Ola and Sridhar Vembu of Zoho, supported Goyal’s stance. 

• Vembu stressed that startups should not rely on government funding but instead take the challenge to innovate independently.

Also read: Need more research funding to drive deep tech growth, says IT Ministry's Additional Secretary

Money can't buy happiness. Although most people think otherwise, Flipkart's co-founder Sachin Bansal appears to be a living example of this.

Speaking at the Startup Mahakumbh, Bansal recalled a conversation with Paytm’s Vijay Shekhar Sharma following his exit from Flipkart, who bluntly told him:

“You are the most unhappy billionaire I’ve ever seen, for someone who has had a billion-dollar exit.”

Bansal received a billion-dollar payout when Walmart bought Flipkart for $16 billion in 2018. He admitted that Vijay’s statement was true.

Because Sachin Bansal did not get the “billion” he was chasing from day zero of Flipkart. 

“The goal was to take the platform (Flipkart) that I had created — or helped create — to a billion people eventually. To serve a billion people at large scale, even globally, over time,” Bansal said.

While Flipkart was an unfinished business, Bansal is running Navi, a fintech platform, to satisfy his hunger as a founder. 

But fintech is a challenging sector. 

“Even after you get punched in the face in the boxing ring, you get up and get going,” is how Bansal feels while running a fintech. 

The regulator, the Reserve Bank of India, is the most important stakeholder for businesses in this industry, not anyone else, he added. 

• However, things are looking bright and Navi will IPO in this fiscal year as it needs more capital, Bansal said 

Dig deeper

Just when there was a glimmer of hope for recovery, Indian IT suffered another blow with US President Donald Trump’s reciprocal tariffs.

• Analysts are revising their growth expectations after Trump imposed a 26% tariff on Indian exports to the US

After two years of muted revenue growth, the IT sector was gearing up for a revival in FY26 with demand recovery on the horizon. 

Now, with the new set of country-wise tariffs, customers might continue to hold up tech budgets in the short term.

“We see the very foundations of the IT services industry being rattled to the core,” analysts at HFS Research said.

In response to this, the IT stocks on the Indian bourses started to trade in red.

While specific sectors such as manufacturing, electronics, and parts of retail/CPG will face cost pressures and uncertainty, costs will be cut on discretionary spending, analysts said.

• However, AI may hog the limelight amidst this shift, as IT firms are expected to double down on AI-led productivity gains to attract customers seeking outcome-based tech spending

Dig deeper

• OpenAI’s Chief Operating Officer, Brad Lightcap, acknowledged India’s remarkable growth as the company’s fastest-expanding market, highlighting the growing interest in and accessibility of AI technology in the region.
  
  
• New York-based AI startup Runway has raised $308 million in new funding, pushing its valuation to approximately $3 billion.

First up, Test on Netflix delivers a gripping emotional punch. 

Featuring R. Madhavan, Nayanthara, Siddharth, and Meera Jasmine, this film follows the journey of a scientist, a teacher, and a national-level cricketer whose lives become unexpectedly connected during a crucial cricket match. 

Then, shift gears with MobLand. London's criminal underbelly explodes with action. 

• A crime drama, starring Helen Mirren, Pierce Brosnan, and Tom Hardy. Watch it on JioHotstar

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