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Centre’s ultimatum to X; fellowships open entrepreneurial doors
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Happy New Year! The Centre has pulled up X for harmful content on its website. This and more in today's ETtech Morning Dispatch.
Also in the letter:
■ Eternal CEO enters debate arena
■ ETtech State of Startup Survey 2025
■ Mphasis CEO on AI
The Centre is prepared to withdraw X's legal protections if the social media platform fails to comply with takedown orders related to harmful artificial intelligence (AI)-generated images, government officials told us.
Driving the news: Authorities said that while the government would prefer not to invoke punitive provisions, it will take “hard steps” if explicit and abusive content targeting women and children continues to circulate unchecked.
Jargon decoded:
Not the first time: This wouldn't be unprecedented. "Back in 2021, the Centre had informed the Delhi High Court that X (then Twitter) had briefly become legally responsible as a publisher,” an official said.
Fellowship and grant programmes are quietly becoming a parallel on-ramp to India's startup ecosystem, giving students, researchers and early-career professionals a low-risk way to explore entrepreneurship without the immediate pressure of raising capital.
Details decoded: Venture firms and founders are rolling out structured programmes that offer stipends, grants, and access to networks, often without taking equity:
By the numbers: Data from Superscout shows India now accounts for about 12% of nearly 10,000 applications across global VC fellowship programmes, up from around 7–8% in 2020.
Why now: The model, popularised in the US through initiatives like the Thiel Fellowship, is gaining traction in India as tighter US visa norms push aspiring founders to look closer to home for similar opportunities.
What are investors saying: While fellowships do not guarantee funding, investors say participation is increasingly seen as a strong signal of entrepreneurial intent. Several fellows have gone on to raise follow-on capital or build venture-backed startups.
Deepinder Goyal, CEO, Eternal
New Year's Eve brought friction for food delivery and quick commerce companies after a section of delivery partners went on strike, demanding better pay and working conditions.
While companies said operations were unaffected on one of the year's biggest sales days, the public conversation took a sharper turn when Eternal CEO Deepinder Goyal weighed in.
Social media quickly became the battleground, with Goyal defending the platform economy and triggering a broader (and polarised) debate on capitalism, class, and labour rights.
What happened: Goyal dismissed the strike, saying, “If a system were fundamentally unfair, it would not consistently attract and retain so many people who choose to work within it.
He also defended the company's 10-minute delivery model and rejected allegations of worker exploitation.
Pro-capitalism stance: On X, Goyal framed the issue as one of value creation preceding redistribution. “Capitalism isn't perfect, but it's the only engine we've seen that creates value. Create first, and distribute second. Reverse the order, and we distribute scarcity,” he wrote.
Also Read: Food delivery, q-comm firms handle record orders despite rider strike
Yes, but: Critics labelled Goyal's posts "tone-deaf”, arguing that value is created by labour, and that insecurity undermines fairness. Political voices also joined the pushback, including Rajya Sabha MP Raghav Chadha, who said he supports innovation, but opposes “exploitation dressed as progress.”
The debate unfolded even as the company pointed to a 10.9% rise in hourly earnings.
Also Read: ETtech Exclusive: Public markets won’t bankroll qcomm cash burn for long: Blinkit CEO Albinder Dhindsa
Startup founders and investors are bracing for a major impact on hiring in 2026 as AI adoption accelerates, as per ETtech's State of Startups Survey 2025.
AI & jobs: About 83% of respondents believe AI will fundamentally alter their business models this year. A majority expect a significant reduction in hiring.
While 43% believe roles will adapt rather than disappear, AI is already deeply entrenched in operations—used by 92% for research and 59% for engineering.
IPO fever continues: Following a bumper 2025 that surpassed the 2021 boom with listings from Lenskart and Meesho, optimism remains high.
Nitin Rakesh, CEO, Mphasis
Mphasis CEO interview: Mphasis CEO Nitin Rakesh said technology spending will rise in 2026 even as enterprises reprioritise budgets to integrate AI more effectively.
Grok's edgy AI image generator under fire: A creative tool gone wrong! New Year's Eve on X turned controversial as users misused the microblogging platform's AI assistant to generate thousands of non-consensual and sexualised images of women, children and public figures.
Electronics production plugs into over Rs 41.5k crore investments: The government approved investments of Rs 41,863 crore by 22 companies under the Electronic Component Manufacturing Scheme (ECMS) and called on the electronics industry to reduce import dependence by deepening domestic sourcing across value chains.
■ AI labour is boring. AI lust is big business (Wired)
■ SpaceX, OpenAI and Anthropic prepare to launch landmark IPOs (FT)
■ AI teachers and cybernetics - what could the world look like in 2050? (BBC)
Also in the letter:
■ Eternal CEO enters debate arena
■ ETtech State of Startup Survey 2025
■ Mphasis CEO on AI
Centre ready to revoke X's safe harbour tag to protect citizens: Govt officials
The Centre is prepared to withdraw X's legal protections if the social media platform fails to comply with takedown orders related to harmful artificial intelligence (AI)-generated images, government officials told us.
Driving the news: Authorities said that while the government would prefer not to invoke punitive provisions, it will take “hard steps” if explicit and abusive content targeting women and children continues to circulate unchecked.
- On Friday, the Ministry of Electronics and Information Technology (MeitY) issued a notice to X, flagging misuse of its AI chatbot, Grok, to generate and spread sexually explicit images.
- The Elon Musk-owned firm was given 72 hours to remove the content and act against offending users.
- As of Sunday afternoon, X had not yet submitted its action-taken report.
Jargon decoded:
- Section 79 of the Information Technology Act, 2000 grants 'safe harbour' to online intermediaries, shielding them from liability for third-party content, if they act as neutral hosts.
- As a significant social media intermediary (SSMI), X is required to follow stricter compliance norms, including swift takedowns and cooperation with government orders.
Not the first time: This wouldn't be unprecedented. "Back in 2021, the Centre had informed the Delhi High Court that X (then Twitter) had briefly become legally responsible as a publisher,” an official said.
Fellowships open a door for campus entrepreneurs
Fellowship and grant programmes are quietly becoming a parallel on-ramp to India's startup ecosystem, giving students, researchers and early-career professionals a low-risk way to explore entrepreneurship without the immediate pressure of raising capital.
Details decoded: Venture firms and founders are rolling out structured programmes that offer stipends, grants, and access to networks, often without taking equity:
- Shastra VC's deep-tech fellowship SDEX
- Kothari Fellowship for Indians under 25
- Emergent Ventures
- Peak XV Partners' Spark
By the numbers: Data from Superscout shows India now accounts for about 12% of nearly 10,000 applications across global VC fellowship programmes, up from around 7–8% in 2020.
- Applicants are largely from IITs, IIMs and BITS.
- Profiles skew towards founders, operators and students, rather than finance-only roles.
Why now: The model, popularised in the US through initiatives like the Thiel Fellowship, is gaining traction in India as tighter US visa norms push aspiring founders to look closer to home for similar opportunities.
What are investors saying: While fellowships do not guarantee funding, investors say participation is increasingly seen as a strong signal of entrepreneurial intent. Several fellows have gone on to raise follow-on capital or build venture-backed startups.
Eternal CEO Deepinder Goyal enters new arena of debate: Capitalism, class divide and gig economy
New Year's Eve brought friction for food delivery and quick commerce companies after a section of delivery partners went on strike, demanding better pay and working conditions.
While companies said operations were unaffected on one of the year's biggest sales days, the public conversation took a sharper turn when Eternal CEO Deepinder Goyal weighed in.
Social media quickly became the battleground, with Goyal defending the platform economy and triggering a broader (and polarised) debate on capitalism, class, and labour rights.
What happened: Goyal dismissed the strike, saying, “If a system were fundamentally unfair, it would not consistently attract and retain so many people who choose to work within it.
He also defended the company's 10-minute delivery model and rejected allegations of worker exploitation.
Pro-capitalism stance: On X, Goyal framed the issue as one of value creation preceding redistribution. “Capitalism isn't perfect, but it's the only engine we've seen that creates value. Create first, and distribute second. Reverse the order, and we distribute scarcity,” he wrote.
Also Read: Food delivery, q-comm firms handle record orders despite rider strike
Yes, but: Critics labelled Goyal's posts "tone-deaf”, arguing that value is created by labour, and that insecurity undermines fairness. Political voices also joined the pushback, including Rajya Sabha MP Raghav Chadha, who said he supports innovation, but opposes “exploitation dressed as progress.”
The debate unfolded even as the company pointed to a 10.9% rise in hourly earnings.
Also Read: ETtech Exclusive: Public markets won’t bankroll qcomm cash burn for long: Blinkit CEO Albinder Dhindsa
ETtech State of Startups Survey: Startups expect to pivot to an AI avatar in 2026
Startup founders and investors are bracing for a major impact on hiring in 2026 as AI adoption accelerates, as per ETtech's State of Startups Survey 2025.
AI & jobs: About 83% of respondents believe AI will fundamentally alter their business models this year. A majority expect a significant reduction in hiring.
While 43% believe roles will adapt rather than disappear, AI is already deeply entrenched in operations—used by 92% for research and 59% for engineering.
IPO fever continues: Following a bumper 2025 that surpassed the 2021 boom with listings from Lenskart and Meesho, optimism remains high.
Other Top Stories By Our Reporters
Mphasis CEO interview: Mphasis CEO Nitin Rakesh said technology spending will rise in 2026 even as enterprises reprioritise budgets to integrate AI more effectively.
Grok's edgy AI image generator under fire: A creative tool gone wrong! New Year's Eve on X turned controversial as users misused the microblogging platform's AI assistant to generate thousands of non-consensual and sexualised images of women, children and public figures.
Electronics production plugs into over Rs 41.5k crore investments: The government approved investments of Rs 41,863 crore by 22 companies under the Electronic Component Manufacturing Scheme (ECMS) and called on the electronics industry to reduce import dependence by deepening domestic sourcing across value chains.
Global Picks We Are Reading
■ AI labour is boring. AI lust is big business (Wired)
■ SpaceX, OpenAI and Anthropic prepare to launch landmark IPOs (FT)
■ AI teachers and cybernetics - what could the world look like in 2050? (BBC)
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