Akshata Sharma
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India is growing in various sectors including economic development. Noticing this Indian companies which had headquarters in foreign regions are moving back to India.
But why the shift?
Foreign Appeal Fades: Startups used to look abroad for investors and money. Now India is sufficient enough.
Indian Market Grows: A 2023 survey shows the Indian capital market is booming.
Startups Eyeing Return: Now, with local funding available, startups are considering coming back home.
India's Ecosystem Matures: Funding, infrastructure, and talent are all available in India now.
Government incentives: Tax breaks, easier rules, and special programs are attracting startups back to India.
Here are some of the initiatives by the Indian Government:
No tax for the offshore holding company on relocation.
No tax for the shareholders for the shareholders of the offshores holding company on relocation of GIFT City.
Grandfathering of existing investment of the holding company.
Allowing carry forward of losses despite the change in ownership.
Reduced compliance obligation for the investors of the offshore holding company etc.
After PhonePe, Groww and Flipkart now Razorpay, Pine Labs, Zepto and Meesho are also considering the move.
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