The author is a keen advocate of venture capital and startups in India, and explains events in the country.

Here is another commentary from Archana Jahagirdar (pictured), the founder of India-based Rukam Capital. She writes about what is happening in the Indian economy and considers the investment implications. The following article focuses specifically on Indian startups.

We value this expert insight into a large and growing economy. These articles are designed to get conversations going – so please respond with any views if you wish. The usual editorial caveats apply. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

Many global investors are aware that India is the fastest growing major economy in the world; it is also on track to become the third largest economy in the world by 2030. What people may not be aware of is that India now has the third largest startup ecosystem in the world. This creates compelling opportunities for international investors who want to invest in India’s growth through its dynamic startups. 

And the good news is that the Indian government has just sought to further strengthen the startup sector in its budget. In analysis by EY, the budget “continues the government's commitment to strengthening India's startup ecosystem by boosting funding, encouraging innovation and bringing in simplification.�

These measures included more money for the existing Startup Fund of Funds along with the exploration of a new Deep Tech Fund of Funds to support next generation startups. A window for startups to claim a tax holiday has been extended to the end of the decade. And measures to simplify tax and bureaucracy will also be introduced.

All this will be discussed at the world’s largest startup event which is being held in India, Startup Mahakumbh. It will feature more than 3,000 exhibitors, 10,000 startups, and 1,000 investors, incubators, and accelerators, with an anticipated 50,000+ business visitors from across India and beyond. Sectors featured include D2C, fintech, AI, deeptech, cybersecurity, defence and space tech, agritech, climate tech/sustainability, B2B and precision manufacturing, gaming, e-sports and sports tech, biotech and healthcare, and incubators and accelerators.
  
I am a member of the core organising committee of Startup Mahakumbh and was nominated to join India’s National Startup Advisory Council (NSAC) in recognition of my work with the country’s startup ecosystem, so this is all very close to my heart. It means that we are now well placed to identify ideal locations to place ourselves to help support the ecosystem, through engaging with tech startups, engineering colleges, academia as well as the government.

The passion for startups in India explains why the total number of startups in the country has now hit 100,000 â€“ a growth of more than 300 times in the last 10 years. Indian investors are reported to have lined up about $20 billion in dry powder – capital waiting to be deployed in startups. India is now the second-largest destination for venture capital and growth funding in the Asia-Pacific region.

The consequence of these positive tailwinds for the Indian startup ecosystem is that there is likely to be increased international investment deployed into this area via Indian venture capital funds as global allocators increasingly recognise the highly attractive opportunities available.

The previous "letter" can be viewed here.