The Ice Cream vs Semiconductor Debate

In March 2025, India’s Minister of Commerce and Industry, Piyush Goyal, ignited a national debate during his speech at Startup Mahakumbh. He asked a loaded question: “So, what does India want to make? Ice cream or semiconductor chips?” This statement sparked a whirlwind of commentary across media platforms. Many saw it as a rebuke of India’s thriving startup scene, which has given rise to instant grocery apps, food delivery platforms, and influencer economies. But behind this seemingly humorous comment lies a deeper issue: India’s struggle between supporting creative, job-generating startups and pushing for high-end deep tech industries.

While it's true that India must aim for global leadership in areas like AI and semiconductors, dismissing existing startup successes as "cookie shops" undermines a critical reality — these startups have created lakhs of jobs, filled market gaps, and stimulated economic activity. In a country battling youth unemployment and bureaucratic red tape, startup jobs are not just better — they are vital. This article breaks down why startup jobs are far better than wageless jobs and why India must nurture its entrepreneurial ecosystem if it wishes to truly innovate.

1. Unemployment Crisis in India

India is home to the world’s largest youth population, yet it struggles with high levels of unemployment. As per the Centre for Monitoring Indian Economy (CMIE), India’s urban unemployment rate was over 8% in early 2025. Rural underemployment and job insecurity further worsen the picture. Millions of educated youth compete for limited government jobs or remain underpaid in the informal sector.

In this environment, startups have become beacons of hope. Whether it's Swiggy delivering food or Zepto promising groceries in 10 minutes, these platforms have generated lakhs of jobs — from delivery executives to software engineers, from product managers to customer service representatives. They offer dignity of labour, fair pay, and upward mobility in a country desperate for stable employment.

2. Startups as Job Engines

Startups are not just about founders becoming billionaires. They are job engines. According to NASSCOM, startups created over 5 lakh direct and indirect jobs in 2024 alone. Zepto CEO Aadit Palicha proudly mentioned his company created over 1.5 lakh jobs and paid over Rs 1,000 crore in taxes. These numbers are not just figures — they represent livelihoods, families supported, and communities uplifted.

Delivery personnel, warehouse workers, software engineers, designers, product heads — startups provide employment to diverse sections of society. The idea that these are not "real jobs" is elitist and disconnected from ground realities. In a country where lakhs of youth remain unemployed despite degrees, a startup job is not just better — it’s necessary.

3. Innovation in Consumer Tech: Not a Crime

Much criticism has been levied against Indian startups for focusing too much on consumer tech rather than deep tech. While it’s true that India must invest in semiconductors, EVs, and AI, we must not forget the role consumer tech startups have played. Innovation isn't only in building chips — it’s also in logistics optimization, payment tech, data security, and customer experience.

Blinkit, Zomato, Paytm, Ola, boAt, and many others have revolutionized how Indians shop, commute, eat, and pay. They’ve made life more convenient for millions, including those in tier 2 and tier 3 cities. This is innovation at scale, tailored for the Indian market — and it matters.

4. The Harsh Reality of Doing Deep Tech in India

Many deep tech entrepreneurs argue that the government is long on talk and short on support. One startup founder working on semiconductor technology revealed how his application sat in a government office for two years, only to be rejected with vague instructions. Shortly after, he received calls from "facilitators" promising faster approvals for a fee.

This highlights the bureaucratic rot stifling innovation. India invests only 0.6% of GDP in R&D, compared to China’s 2.4%. We cannot build a deep tech revolution without fundamental reforms in ease of doing business, transparency, and research funding.

5. Family Pressure and the Death of Risk-Taking

Indian society still frowns upon risk-taking. Parents push children toward government jobs or multinational companies. Schools prioritize rote learning over problem-solving. Creative thinking is penalized, not rewarded. In such an ecosystem, it’s a miracle that anyone wants to be an entrepreneur.

Startups go against this grain. They reward innovation, risk-taking, and vision. Startup founders and employees are rebuilding a culture of risk and reward that India desperately needs. They are breaking generational taboos and changing what it means to succeed in India.

6. The Value of Economic Independence

Every startup job, no matter how small, provides someone with income, dignity, and self-worth. It allows young people to pay rent, support families, and build lives without relying on low-paying or unstable work. In contrast, wageless jobs or internships exploit youthful ambition while offering nothing in return.

From Swiggy riders to SaaS developers, each role in a startup empowers someone economically. And that economic independence is the first step toward national development.

7. The Global Perspective: What Other Countries Got Right

Look at the US, China, Israel — they all built strong startup ecosystems before transitioning to deep tech dominance. China’s deep tech success didn’t happen overnight. It took 20 years of government support, strategic funding, and infrastructure development. India must do the same — not by mocking existing startups but by building upon their success.

Countries like Israel offer R&D grants to early-stage startups. The US provides tax breaks, innovation clusters, and university partnerships. India must replicate these models while celebrating our own startup heroes.

8. Respecting the Job Creators

It’s ironic that while ministers speak about job creation, they often ridicule those doing exactly that. Startups pay taxes, employ thousands, and build global brands. They deserve support, not sarcasm.

Ashneer Grover, former MD of BharatPe, put it bluntly: “Maybe time for politicians to aspire for 10%+ economic growth rate for 20 years flat before chiding today’s job creators.” And he’s right. Growth needs ambition, but also humility to acknowledge those already delivering results.

9. Addressing Startup Challenges: A Roadmap for Reform

To truly empower startups, India must:

• Reduce red tape and bureaucratic delays
• Offer tax incentives for R&D and innovation
• Set up startup mentorship hubs
• Provide government-backed loans for deep tech ventures
• Integrate academia and industry for product innovation

These changes can make India a global leader in not just consumer tech but deep tech as well.

10. Conclusion: Building the Future Together

The debate over ice cream vs semiconductor chips is misplaced. Why not have both? India’s diversity demands solutions at every level — from fast food delivery to AI-based healthcare. Dismissing one in favour of the other is short-sighted.

Startups are not the enemy — they are the engine. And every startup job created is one less wageless youth. In a country as young and ambitious as India, startup jobs are not just better — they are the path forward.

Let’s not kill innovation with cynicism. Let’s celebrate the entrepreneurs, engineers, delivery riders, designers, and coders building India’s future one idea at a time.

Because at the end of the day, a job — whether in ice cream or AI — is always better than no job at all.

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Disclaimer: This article reflects the author’s views for informational purposes only. The Trending People is not responsible for any interpretations or reactions. All opinions are personal and not intended to offend or defame any individual or organization.