A new report warns that India’s digital policy is moving toward tighter controls that may slow expansion of the local startup sector. A more enabling approach could raise new company formation by 7 per cent. Over 88 per cent of Indian startups said existing digital rules create operational hurdles, with data governance cited as the top issue by roughly 44 per cent of those surveyed. The study, titled ‘Digital Regulations and the Startup Ecosystem in India,’ was released Monday by Oxford Economics and Digital Prosperity Asia. Rules on artificial intelligence (23 per cent), cybersecurity (20 per cent) and platform governance (13 per cent) were also flagged. About 72 per cent of startups and venture firms noted that compliance efforts are shifting resources away from research and innovation.
