India's startup scene may hit rough waters with restrictive digital rules, potentially cutting 2,130 startups each year. A report by Oxford Economics for Digital Prosperity Asia (DPA) estimates these rules could slash about ₹91,500 crore in annual venture capital and wipe out around 245,000 startup jobs by 2035.
Study shows how regulation affects innovation,investment,and jobs. Insights come from surveying 550 startup ecosystem players: 350 startups,100 venture capital firms,100 incubators. Plus expert interviews and economic modeling. Findings indicate moving from supportive to restrictive regulations could slow startup growth by 20% and venture capital by 25% in next decade.
But report also suggests enabling regulations could flip the script. Policy shifts might boost startup creation by 7%,venture capital by 9%,and add 80,000 jobs by 2035. Bali Kaur Sodhi,Lead Economist at Oxford Economics,urged for balanced regulations in emerging markets like India. He argued they could help startups grow,draw investment,and speed up tech spread.
Report warns: regulations overlapping in AI,data governance,cybersecurity could complicate compliance. Might fragment rules, stalling startup growth.
With better digital infrastructure and balanced rules,India could tap big economic gains,including estimated ₹30,400 crore in venture capital yearly over next decade. How these regulatory choices play out remains crucial for India's innovation future…
