Report says India's digital rules may cost startups ₹91,500cr annually
India's stricter digital regulations might cost startups up to ₹91,500 crore a year and slow down the ecosystem, according to a new report by Oxford Economics and Digital Prosperity Asia.
Out of 350 startups surveyed, 88% said these rules make running their business harder, especially when it comes to data governance (44%), AI rules (23%), cybersecurity (20%), and platform policies (13%).
Compliance drains startups and VC firms
Most startups and VC firms (72%) feel that following all these regulations is eating into time and money they'd rather spend on building cool stuff.
While 68% aren't sure if the effort is worth it, about 42% say customer trust has actually improved thanks to tighter rules.
The report warns that if things get even stricter, India could see fewer new startups and jobs by 2035.
Smarter, balanced regulations could unlock more funding and create thousands of jobs instead.