Startups, Regulations, and Tech Colonization in India

Date:

Trending

While the surplus population in India provides the right platform to the emerging entrepreneurs to brainstorm innovative ideas and disrupt the market, the GoI regulations restrict them to expand their horizons at the same time.

- Advertisement -

Despite the fact that a host of angel investors and venture capitalists are investing huge sums of money on companies founded by twenty-something fresh college graduates, the entire startup ecosystem is bogged down by stringent regulations and compliance guidelines.

To add more worries, even the old businesses are staging protests against these startups, alleging the latter of ruining traditional businesses.

- Advertisement -

Admittedly, startups in India are grappling for survival, especially in an environment where every odd is against them. Take the example of Ashish Gurnani and Aashray Thatai, the co-founders of the New Delhi-based men’s apparel startup Postfold.

Although the company has seen unprecedented growth over the two years, the co-founder duo is still apprehensive of venturing into new vistas.

While they plan to move beyond apparel, the concern that both of them have is the not-so-friendly regulations imposed by the Government of India.

Like any other young startup, Postfold is spending an inordinate amount of time in keeping track of the ever-evolving regulatory space.

This, however, is not just a case study, it is the story of every startup. And those venturing into e-pharma or cryptocurrency are the major victims.

The Major Concerns

Unpredictability, many newfangled startup founders, say is the major drawback of the government regulations. For instance, the Supreme Court’s verdict on data privacy, which has been widely appreciated, was followed by RBI’s snap judgment on cryptocurrencies that has unnerved many startups.

The lack of clarity from government’s end in conjunction with the constant accusation by local businesses of regulation disparity has placed every startup in an intricate maze.

“Startups like us spend a lot of time in determining what can be done and what’s not,” remarks Postfold’s founder Ashish Gurnani “For a young company, it can be a time-consuming and costly affair.”

In an environment like this, the growth that startups seek for becomes unattainable. Especially when it is combined with the compliance cost, the state of affairs is far away from cost-effectiveness.

This is a primary reason why many startups have now resorted to conservative methodologies to navigate forward, thereby restricting themselves to optimize their full potential.

The need of the hour is to formulate policies that conform to the best interest of the ecosystem and provide greater lead time for startups to adjust with the rapidly changing regulatory space.

Tech Colonization

One one hand startups are grappling with regulatory mandates, on the other many are of the opinion that technology giants are taking over the landscape and are running the show.

This isn’t entirely a false accusation, considering the number of foreign companies India hosts. In fact, many ministers in the present cabinet opine that it is because of the unchecked proliferation of the Facebook’s and other behemoths, India has been forced into tech colonization.

Despite the authenticity of such concerns, very little has been done to uplift the startup market in India. And is a primary reason why a big corporation hasn’t born out of India in years.

While the lofty claims of providing a convivial environment for startups have failed, it is yet to be seen what accusations such as tech colonization yield in the long term.

What is the solution?

At this juncture of time, it is very difficult to even comment what a solution to this vexed conundrum can be. The government is under a lot of pressure and so are the startups.

The need of the hour is to devise a solution that’s win-win for both. Now is the time to scale up and nurture the startup ecosystem that in the long run can negate concerns like tech colonization.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

00:01:37

UK PM Kier Starmer Abolishes NHS England To Bring Health Services Under Govt Control

British Prime Minister Keir Starmer has announced plans to abolish NHS England and bring it back under government control. The move aims to reduce...

VIDEO: US President Donald Trump Calls NBC A ‘Work Network’ On Television

During a press meeting at the Oval Office on Wednesday, US President Donald Trump criticized a reporter by calling NBC the 'worst network' on television. https://creators.spotify.com/pod/show/techgraph/episodes/VIDEO-US-President-Donald-Trump-Calls-NBC-A-Work-Network-On-Television--News--US-News-e304h89

The Role of Edge Computing in AI-Powered Cloud Solutions

With businesses including artificial intelligence (AI) in their operations, cloud computing has grown in...

From Startup to Success: Essential Steps for Landscaping Entrepreneurs

Starting a landscaping business is so exciting, blending creativity with the reward of transforming...
00:03:00

Trump Defends Elon Musk Plan for Federal Job Cuts; Govt Spending ‘Bloated’

Following a meeting with Elon Musk and senior cabinet members, U.S. President Donald Trump...
00:08:45

Trade War: Canadian PM Justin Trudeau Announces 25% Tariffs On US Imports

Ottawa: Canadian Prime Minister Justin Trudeau on Wednesday announced a 25% tariff on U.S....

Meta CPO Chris Cox Sells Shares Worth $8.3 Mn

Meta Platforms (NASDAQ: META) Chief Product Officer Christopher Cox sold 13,556 shares of the...

Meta COO Javier Olivan Offloads Shares Worth $409,768

Meta Platforms (NASDAQ: META) Chief Operating Officer Javier Olivan is set to sell 608...
00:02:23

‘Canada Ripping Us’: US President Trump Criticizes High Tariffs on Dairy and Lumber

U.S. President Donald Trump on Friday slammed Canada’s high tariffs on American dairy and lumber products, warning of retaliatory measures unless the tariffs are...

Personal branding: designing logos for influencers and creators

In today’s digital landscape, personal branding has become more than just a buzzword; it’s...

Demand for plumbers in Oman: which specialists are most in demand?

The demand for skilled plumbers in Oman is steadily increasing due to the country's...

Union Budget 2025: Real Estate Experts See SWAMIH 2.0, ₹15,000 Cr State Support to Ease Housing Bottlenecks

The real estate sector views the Union Budget 2025-26 as a step toward addressing...

Logistic Startup Picckup Secures $500K in Seed Funding to Expand Electric Fleet

A Mohali-based mid-mile and last-mile logistic startup, Picckup, on Thursday, raised $500K in series...

Empowering Communities with Water Tech

This is a major problem worldwide; it affects billions of people in homes, villages, and towns. Population increases, climate change and limited water resources...

IIT Madras and SPF Partners to Enhance Policy Framework for Indian Startups

Indian Institute of Technology Madras (IIT Madras) has entered into a Memorandum of Understanding (MoU) with the Startup Policy Forum (SPF) to drive data-driven and evidence-driven policy advocacy for the startup ecosystem. As part of this partnership, SPF will support the Centre for Research on...

Sachin Tendulkar Backed RRP Electronics Partners with Deca Technologies To Enhance Semiconductor Packaging

Cricketing legend Sachin Tendulkar-backed semiconductor manufacturer RRP Electronics has signed a strategic partnership with...

Ways Technology Can Help Your Business Performance

Businesses of all sizes and across every industry are integrating technology to improve their...

BC Originals: Exclusive Casino Games on BC.Game

BC Originals are special, exclusive casino games that are just for BC.Game players. All...

Dogsee Chew draws $8 Mn in series B round from Ektha & Others

Natural pet treat brand Dogsee Chew on Thursday said, it has raised $8 million...

Simplifying International Transfers: A New Era for Indian Immigrants in Canada

Every year, thousands of Indian professionals and families pack their lives into suitcases and...

Lado Okhotnikov: A Successful Entrepreneur Who Has Inspired Millions

Lado Okhotnikov is a successful entrepreneur, expert, publicist, and investor from Kazakhstan, widely recognized...

Choosing the Right Tax Consultant: A Guide for Businesses and Individuals

For both individuals and businesses, tax planning and compliance are crucial aspects of financial...

Life Insurance Death Benefit Payouts: What Your Family Needs to Know

It is important to know more about life insurance policies and their operational modalities....

The Rise of Conversational AI: What It Means for Tech and SaaS Businesses

Back in the time, when AI was not as prominent, businesses used to struggle...

Union Budget 2025: Real Estate Experts See SWAMIH 2.0, ₹15,000 Cr State Support to Ease Housing Bottlenecks

The real estate sector views the Union Budget 2025-26 as a step toward addressing...

Microsoft Makes Equity Investment in Veeam

American tech giant Microsoft has made an equity investment in Veeam Software to develop...

Adani Wilmar Gets Shareholders’ Approval to Rebrand as AWL Agri Business Limited

Stock exchange-listed Adani Wilmar Limited announced on Tuesday that it has received approval from...

Beyond Firewalls: How Threat Intelligence Platforms Are Transforming Cybersecurity Operations

“Cybersecurity isn't just about building walls—it’s about seeing the enemy before they strike.” In...

Leveraging AI and Modern HR Solutions to Transform Recruitment Strategies for Skilled Workers

In today’s competitive job market, recruitment strategies are rapidly evolving, driven by advancements in...

Logistic Startup Picckup Secures $500K in Seed Funding to Expand Electric Fleet

A Mohali-based mid-mile and last-mile logistic startup, Picckup, on Thursday, raised $500K in series...

Life Insurance Death Benefit Payouts: What Your Family Needs to Know

It is important to know more about life insurance policies and their operational modalities....

Wired vs. Wireless Headsets: A Comparative Guide for Evolving Audio Needs

Across a wide range of demographics, including gamers, fitness enthusiasts, business executives, and remote...

The Rise of Conversational AI: What It Means for Tech and SaaS Businesses

Back in the time, when AI was not as prominent, businesses used to struggle...