A decade in, India’s startup story needs a new playbook. It is time to prioritize AI innovation in India, IP protection, SaaS tax rationalization, and global mobility for tech talent. The next decade of entrepreneurship will be defined by scale, IP creation, and real-world execution, not pitch decks or tax holidays.
The Decade That Built the Ecosystem
When Startup India was launched by the Government of India in 2016, the country’s tech startup ecosystem was still finding its balance. A wave of new ventures was sparked by incentives such as tax exemptions, easier compliance, and seed funding initiatives. India quickly became the third-largest startup hub in the world with over 100,000 registered startups and 100+ unicorns by 2024. (source: PIB)
The first decade of Startup India was all about building an ecosystem. The upcoming one must be about moulding an economy.
The conversation must reach new heights now.
The Rise of Digital Public Infrastructure
India Stack, Aadhaar, DigiLocker, UPI, and ONDC are some of the initiatives that have turned policy into platforms. These digital “rails” are making things possible, which tax breaks never could, creating interoperability, transparency, and hassle-free access for millions of users and businesses.
- 10 billion transactions were processed every month in 2024 (BIS Papers).
- The merchant base of ONDC expanded by 400% year-on-year, allowing small retailers to access digital marketplaces without needing to depend on private platforms.
More than digitization, this can be called democratization. Just like how cloud computing redefined Western tech ecosystems, India’s digital public commodities are becoming the base for a new generation of the best Indian startups. Entrepreneurs are building themselves on APIs, not paperwork.
What Startup India 2.0 Should Focus On
AI and IP Support for the Next Generation of Innovation
If the first wave of Startup was about scale, the next must be about intellectual depth. The next decade of entrepreneurship will be defined by the effectiveness of India’s support towards AI and IP support, and protection of algorithmic IP.
India has got the expertise and data to lead in AI, but is deficient in streamlined IP support for startups. Dissimilar to the U.S. or EU, where AI patents can be processed in months, Indian startups face years of delay more than often.
A more concrete AI-IP ecosystem would include:
- Acceleration of patent examination for AI and data-led innovations.
- Modelling AI “sandboxes” where startups can test models with anonymized government datasets.
- Public-private R&D funds co-managed by academia, government, and private accelerators.
Such means could contribute to the transformation of India from a global service hub to a product powerhouse.
SaaS Tax Rationalization and Global Competitiveness
SaaS startups from India are already a global success story. Companies like Zoho, Freshworks, and Postman have shown that world-class SaaS can be built from Chennai or Bengaluru as effortlessly as from San Francisco.
Despite the success, Startup taxation in terms of SaaS continues to be a bottleneck. Complex GST and TDS rules are creating friction for exporters of SaaS from India in terms of compliance. Current SaaS taxation in India frequently treats cross-border software services and domestic supplies, adding avoidable cost layers.
Streamlining this process could unlock exponential SaaS India growth:
- Rationalize GST rates for SaaS exports.
- Simplify tax credits for R&D and software IP creation.
- Offer standup-friendly TDS exemptions for recurring global clients.
With SaaS growth in terms of exports predicted to cross $50 billion by 2030 (NASSCOM), such reforms would consolidate India’s position as the global SaaS hub.
Global Mobility for Tech Talent
India produces nearly 1.5 million engineers every year, yet founders face visa restrictions or limited access to international accelerator programs. Global mobility for tech talent is as important as access to capital for innovation to get global.
Startup India 2.0 can emphasize:
- Bilateral “innovation corridors” with the U.S., EU, and Southeast Asia.
- Digital nomad visas for Indian founders working on cross-border projects.
- Global talent programs allow exchange between startups, investors, and researchers.
Cross-border talent exchange builds ecosystems. More Global startups and global exposure will help Indian founders compete without borders.
The Builders Take Over From Policy to Practice
We could say, if the government built highways, private players are now building the vehicles. The next chapter of India’s startup ecosystem growth depends on the alliance between public infrastructure and private execution.
The next decade will belong to builders who translate national digital frameworks into working systems for citizens and businesses. That’s the space where Codeft operates.
Codeft, as a product development company, assists startups and SMBs in translating India’s advancing digital landscape into scalable products that answer real problems. The company’s ecosystem approach combines technology consulting, product development services, and insights from Think Tank to mentor businesses through every stage of growth.
Helping India’s Next-Gen Founders Build on Insights
Indian entrepreneurs often need tactical transparency more than capital. Codeft’s technology consulting practice helps upcoming companies figure out their digital strategies for larger policy shifts, whether it’s taking advantage of ONDC for e-commerce or blending UPI for fintech solutions.
Designing Products for Scale from Day One.
As a product development agency, Codeft aims to build digital products that are modular, scalable and aligned with India’s evolving digital standards. Starting from SaaS startups to AI-driven tools, Codeft’s product development services are built to fill the gap between innovation and execution.
Conversations that Shape Narratives
Codeft contributes to the ecosystem beyond execution, through leadership. Our Think Tank drives research, policy insights, and strategic recommendations on topics relevant to the future of Indian startups, spanning from SaaS taxation to IP protection and AI innovation in India. Because the next decade won’t be won by startups alone, but by the systems they build around them.
Building What Comes Next
The most important question right now is “How do we take this revolution to the next level?”
Startup India 2.0 will not be quantified by the number of startups registered, but rather how many play globally, how many protect their IP, employ tech talent, and scale SaaS products across the globe.
India’s digital public infrastructure has laid the foundation. Now, the time has come for execution, by startups that push boundaries with innovation, policymakers who enable, and private players like us who model what comes next.
Founder’s perspective:
We’ve seen India’s startup story evolve in more ways than one. The next decade will be defined not by who raises the biggest round, but by who builds the strongest foundations with intellectual, digital, and ethical. As a team deeply rooted in product thinking, we believe that Startup India 2.0 is about the ability to turn vision into systems that scale globally. Our goal has always been simple: to help founders, innovators, and policymakers build what comes next… for India and the world!
— Rahul V,
Founder & CEO Codeft Digital
