Oxford Economics: digital rules could cut India's VC by ₹91,500cr
India's startup scene could take a serious hit if digital regulations get tighter, according to a new Oxford Economics report.
The study warns that stricter rules might slash annual venture capital by ₹91,500 crore and cost 2.45 lakh jobs between 2026 and 2035.
Survey of 550 finds compliance burden
The report surveyed 550 ecosystem participants including 350 startups, 100 venture capital firms and 100 incubators: 88% said these rules are already making it harder to operate, while 72% of startups and venture capital firms have had to shift focus from building cool stuff to just keeping up with compliance.
On the flip side, friendlier policies could boost new startups by 7%, add ₹30,400 crore in yearly investments, and create 80,000 jobs.
As Bali Kaur Sodhi from Oxford Economics put it, "In an emerging market like India, maintaining proportionate, principles-based regulatory frameworks can support startup scaling, attract investment, accelerate technology diffusion and strengthen the country's innovation ecosystem."