Startups in India: Pros and Cons

Startups in India: Advantages

Straightforward Process

The Indian government encourages young entrepreneurs to launch their own startups by making the process easy and straightforward.

The entire procedure can be completed through an online portal. Should you need to set up a startup, all you have to do is fill up a simple form and upload certain documents, and you’ll be up and running in no time.

Reasonable Costs

Besides making the process simple and straightforward, the Indian government also offers a plethora of facilitators of patents and trademarks that provide Intellectual Property Right Services at reduced fees. The end result is an 80% reduction in patent costs for startup founders.

Furthermore, the gov offers a 10,000 crore rupees fund as venture capital for startups, along with giving a guarantee to the lenders to encourage different financial institutions to provide venture capital to startups.

Tax Saving

Looking for investors is an integral part of any startup journey, and when it comes to investing, nothing’s more frustrating than paperwork and tax filing. Thankfully, those who want to invest their capital gain in the government’s venture funds can get an exemption from capital gains. What’s even more convenient is the fact that startups can choose between different venture capitals and therefore pick their investors.

Simple Exit

Closing a business can be as tiring as starting one. Fortunately, that’s not the case for newly-launched Indian startups, as they can close their doors and quit the field in a facilitated manner within 90 days from the application of winding up.

Startups in India: Disadvantages


An immature Ecosystem

Although available and well suitable for some kinds of startups, such as eCommerce stores, the Indian business ecosystem is not fully-developed yet when it comes to more-technical ventures, such as hardware startups, as you’re less likely to find a mentor or someone who can guide you in such fields. That’s basically the reason while most Indian startups move to Silicon Valley. Sad, but true. Nevertheless, the ecosystem is evolving in a fast manner, and experts are starting to pop up by the hour.

Employees Are Still Skeptical

When you operate a well-known company, you don’t look for employees, they come to you searching for experience and a nice headline that they can add to the resumes. That’s not the case for startup, unfortunately. Although the startup field is witnessing a growing following, people are still skeptical towards the idea as they don’t know whether a particular startup will succeed or not. That’s why HR management can be a real challenge for startups.

Final Thoughts: Are Startups Worth it in India?

I can’t answer that question for you, as it highly depends on the type of startup you’re trying to launch and the experience you have in the field. However, I do encourage entrepreneurs to take a shot in this world. If your startup succeeds, then great, you achieved what you were looking for. If it doesn’t, at least you’ll earn priceless experience and learn from the loads of mistakes you’re going to make.