Startup Stories
Ghar Wapsi: Indian Startups Returning Home in Droves
In a significant trend dubbed “Ghar Wapsi,” Indian startups that once set up base abroad are now returning home in large numbers. The impetus for reverse migration is provided by various factors including benevolent government policies, a booming domestic market, and the growing attractiveness of the Indian startup ecosystem. Here’s a look at why Indian startups are coming back and what it means for the economy of the country.
Reasons for Startups’ Return to India
- Government Policies in Favor: Government initiatives ranging from Startup India, tax incentives, and easing the process of doing business have made India an attractive place for startups.
- Home-Market-Full Domestic Market: In a large and hence continuous growing market for startups, India offers a potential market with a population of over 1.4 billion and fast-growing digital penetration.
- Cost Efficiency: With low operation costs, affordable manpower, and a large pool of highly skilled professionals available, India is a very cost-effective base for startups.
- Global Recognition: Today, the startup ecosystem in India is internationally recognized, with numerous unicorns and successful exits bolstering the confidence of global investors.
- Cultural Affinity: Many founders feel a deeper cultural and emotional connection to India, which they believe favors running and scaling businesses locally.
Moving Startups to Notable Locations
Several high-profile startups have either already moved their headquarters to India or are in the process of doing so:
- Zoho Corporation: The SaaS behemoth moved its global headquarters to India, citing the growing tech talent pool in India and the supportive policies in place.
- Freshworks: Freshworks has made its presence felt across India after becoming a unicorn.
- Razorpay: The fintech company is now completely re-oriented towards the Indian market, capitalizing on digital payment growth.
Impact on Economy in India
The influx of startups into India is poised to positively impact the economy:
- Job Creation: Startups have been significant job creators, providing opportunities across the board, whether in white- or blue-collar jobs, and everything in between.
- Innovation and Growth: Startups will bring innovation, competition, and growth in vital industries such as technology, healthcare, and finance.
- Foreign Investments: Back to Startup, FDI and Global Partnerships are now coming in, increasing the hopes of the economy.
Challenges Ahead
This tide has great promise, but there are hurdles that can still be in their way:
- Infrastructure: India should ramp up infrastructure development in line with the rapid growth of the startup ecosystem.
- Regulatory Limitations: Overcoming regulatory hurdle and red tape would be the essential factor in sustaining this trend.
- Retaining Talent: Retaining the talent pool inside India is a very vital aspect of long-term success.
What’s Next?
The government and private sector must work together to create an environment conducive for returning startups to India. Continuing investment in infrastructure, education, and innovation will certainly help sustain that momentum.
Conclusion
“Homecoming” for Indian startups has brought a significant paradigm shift in the global startup township. With a plethora of advantages, a buoyant market, and nascent ecosystem developments, India stands at the inception of becoming a global hub for innovation and entrepreneurship. With the hope of economic growth, creation of jobs, and a better future for the country, the startups are coming back home.