India has been experiencing a startup tsunami over the last decade. With tens of thousands of ventures scaling up and global investments pouring in, the country has emerged among the world’s fastest-growing innovation hubs. Yet, behind this success story lies a persistent challenge: outdated regulations that haven’t kept pace with digital-first businesses.

If India truly wants to position itself as a $10 trillion economy, startups must not just survive — they must scale. That requires a regulatory framework aligned with today’s business and technological ambitions.

Points of Friction

New businesses are often bogged down by stringent, outdated compliance norms. Lengthy incorporation processes, slow approvals, and endless paperwork delay go-to-market timelines.

Taxation adds another layer of complexity, with conflicting GST interpretations, transfer pricing hurdles, and withholding rules creating uncertainty.

Then comes the angel tax. Even with recent relaxations, ambiguities remain — sometimes penalizing startups for raising capital instead of encouraging them.
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