'Red tape broke us, my grandfather died from stress': Techie recounts how system crushed once India's top optical fibre manufacturer

Yashovardhan Agrawal, a tech professional, has responded sharply to Commerce Minister Piyush Goyal's recent criticism of Indian startups, citing his family's manufacturing experience and India's policy failures as the real reason why innovation struggles to thrive in the sector.

"I’m deeply saddened by Piyush Goyal's comments at Startup Mahakumbh," Agrawal wrote on X. "Comparing India's service industry to China's manufacturing sector is not just unfair, it's ignorant of the reality on the ground."

Agrawal said his family once ran one of India's top optical fiber accessories manufacturing firms, but the 2G scam and policy uncertainty dealt a fatal blow. "Telecom orders from BSNL halted overnight, leaving us with massive losses. Private players exploited us, demanding we sell at 1% of the price."

He also said India's labor laws were a major hurdle: "We couldn't lay off workers even though our business was collapsing. Labour Unions, department—everyone just halted the rest of the operations." According to him, the long fight with the system took a personal toll. "My grandfather died from the stress, and my parents spent a decade fighting labor cases. Our savings were drained, and the business shut down."

Even today, he said, bribes remain routine. "Just to keep a basic factory running, local departments and labor officers ask for bribes openly."

Agrawal called out the government's view that startups should pivot to manufacturing and deep tech. "We're focusing into service industries because manufacturing is too unrewarding. Many techies, like me, work for foreign companies or leave the country to innovate. Why? Because India makes it impossible."

He listed key reforms the government needs to consider: Simplify labor laws, incentivise manufacturing, build better infrastructure. "Until then, comparisons with China are hollow. Let’s fix the system instead of blaming innovators and startups for focusing on services," he wrote.

Responding to Goyal's criticism of low-end delivery jobs, Agrawal asked, "Isn't China leveraging cheap labor in their factories? How is that any different? The problem isn't the workforce doing unrewarding jobs, it's the environment we’ve created for the employers of today."

He also argued that India's success in the services sector is not because of government support but despite it. "Today, I find India one of the most comfortable places to live, even in tier 2 cities. It's not because of government incentives. It's because of startups and techies who’ve built solutions despite systemic hurdles."

"Manufacturing in India is broken because of systemic failures, not lack of ambition or talent," he concluded. "Fixing these issues comes first before blaming our vibrant startup ecosystem for 'not doing enough'."