Why Tech Professionals Are Returning to India to Launch Startups: A New Era of Entrepreneurship
Business Insider•2 weeks ago•
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Why Tech Professionals Are Returning to India to Launch Startups: A New Era of Entrepreneurship

startups
entrepreneurship
india
expats
technology

Summary:

  • A growing number of expat Indians are returning to India to launch startups.

  • The pandemic has transformed India into an attractive startup ecosystem.

  • India boasts over 140,800 recognized startups, creating 1.6 million jobs.

  • Government initiatives like Startup India are facilitating new business creation.

  • Despite growth, challenges like bureaucratic hurdles and urban congestion remain.

Expat Indians Are Coming Home to Innovate

A growing number of expat Indians are returning to their homeland to launch startups, driven by a booming market and improved conditions for entrepreneurs in India. The internet growth and post-pandemic spending are significant factors in this trend.

Nithin Hassan Image: Nithin Hassan lived in the US for 15 years before returning to India last year.

The Pandemic as a Turning Point

Nithin Hassan, who left a lucrative job at Meta, is among those who have taken this leap, citing the pandemic as a pivotal moment that made India an attractive startup ecosystem. With over 140,800 recognized startups in the country, the entrepreneurial scene is vibrant, creating 1.6 million direct jobs.

A Shift in Perspective

The trend of reverse migration has been increasing since the 1990s, driven by factors like unstable visa policies and job uncertainties abroad. Many returnees are now finding opportunities in tech, finance, and retail sectors.

India's Economic Landscape

India's 8.2% economic growth in 2023 is the fastest among large economies, providing greater purchasing power for startups. Additionally, government initiatives like Startup India are smoothing the path for new businesses.

A Supportive Community

Tech hubs like Bengaluru and Gurugram are fostering a supportive entrepreneurship culture, with networking events and mentorship becoming increasingly available. Founders like Dhruv Anand, who launched an AI startup after returning from the US, appreciate the collaborative atmosphere.

Challenges Still Exist

Despite the optimism, challenges remain. Founders acknowledge that while India is growing rapidly, the startup ecosystem still lags behind the maturity of Silicon Valley. Bureaucratic hurdles and urban congestion continue to pose challenges, but the personal connection to local problems makes the entrepreneurial journey rewarding.

The Joy of Building Locally

Many founders express a profound joy in developing solutions for issues they personally relate to, emphasizing a shift from "Build from India" to "Build for India." This cultural connection is a significant motivator for many returning to their roots.

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