The Future of Startups in India

India's Finance Minister, Nirmala Sitharaman, has extended considerable support to startups in the latest budget, a much-needed boost for the Indian startup ecosystem. The momentum of startup growth in India appears to have slowed. After reaching a milestone of 100 unicorns by the end of 2022, only three new unicorns have emerged in 2024. Major startup hubs such as Bangalore, Hyderabad, and Delhi have all felt the impact. The situation at Byju's exemplifies this downturn. Once India's most valuable startup, Byju's is now facing

significant challenges, including missing a financial statement deadline, defaulting on a $1.2 billion loan, and losing both its auditor and several board members.

Despite the ongoing funding challenges, India's startup ecosystem has seen over $3.6 billion in funds being launched or closed this year. To foster a robust startup environment, it is crucial to support ventures addressing grassroots-level challenges. In the latest budget, Finance Minister Nirmala Sitharaman has abolished the angel tax, providing significant relief to the startup community. "To bolster the Indian startup ecosystem, boost the entrepreneurial spirit, and support innovation, I propose to abolish the so-called angel tax for all classes of investors," Sitharaman stated. Additionally, she expanded the definition of "eligible startup" for tax benefits under the Startup India scheme. Currently, there are 117,000 registered startups under this scheme. To qualify for incentives, a startup's turnover must be less than 100 crore in any of the previous financial years.

We present our country managers special issue at this interesting juncture. Do let us know your thoughts.