{"id":67382,"date":"2026-01-28T16:10:55","date_gmt":"2026-01-28T19:10:55","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/887332235"},"modified":"2026-01-28T16:10:55","modified_gmt":"2026-01-28T19:10:55","slug":"is-budget-2026-ready-to-address-startups-compliance-funding-and-tech-gaps","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/01\/28\/is-budget-2026-ready-to-address-startups-compliance-funding-and-tech-gaps\/","title":{"rendered":"Is Budget 2026 ready to address startups’ compliance, funding and tech gaps?"},"content":{"rendered":"
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As India prepares for the next Union Budget, startup founders and investors are urging the government to focus on easing compliance<\/a>, unlocking domestic capital and strengthening critical technology infrastructure. While India\u2019s startup ecosystem has shown resilience and ambition, experts say the next phase of growth will depend on reducing friction and backing long-term innovation.<\/p>\n

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EASE OF DOING BUSINESS STILL A PAIN POINT<\/h3>\n

Despite strong momentum in recent years, founders say day-to-day operational challenges continue to weigh heavily on startups. Complex GST rules, slow refunds and frequent filings often take up time that could otherwise be spent on building products and scaling businesses.<\/p>\n

Medhansh Seth, Founder of AceCubing and author of Surrogate Entrepreneur, said simplifying compliance should be a top priority.<\/a><\/p>\n

\u201cMake it easier to build in India. Startups have stayed resilient, but too much time still goes into GST and compliance instead of innovation,\u201d he said.<\/p>\n

Seth pointed out that startup founders already juggle multiple roles, from fundraising and accounting to marketing and logistics. \u201cIf GST filings are made simpler, it reduces the burden on founders, improves compliance and makes it easier to run a business,\u201d he added.<\/p>\n

NEED TO UNLOCK DOMESTIC CAPITAL<\/h3>\n

Beyond compliance reforms, there is growing demand for initiatives that increase domestic funding for startups.<\/a><\/p>\n

Seth said India has a large pool of idle money that needs to be channelled into innovation.<\/p>\n

\u201cWe need to unlock more domestic private capital, especially HNI participation, so innovation is not dependent on external cycles,\u201d he said, suggesting a reduction in long-term capital gains tax on startup exits to encourage investment.<\/p>\n

According to him, such measures are key to empowering young entrepreneurs and ensuring that India\u2019s strong performance in 2025 carries forward into 2026.<\/p>\n

PUSH FOR AI, DATA AND SEMICONDUCTOR INFRASTRUCTURE<\/h3>\n

Another key demand from the startup community is greater focus on technology infrastructure<\/a>, particularly in areas such as data centres, semiconductors and AI computing.<\/p>\n

Seth drew focus towards India\u2019s dependence on global systems. \u201cWe generate a lot of data but store only about 10% of it domestically. We need more data centres, semiconductor infrastructure and GPU capacity if India wants to fully benefit from the AI opportunity,\u201d he said.<\/p>\n

He added that building domestic capability is crucial at a time when global conflicts and supply chain disruptions are becoming more frequent.<\/p>\n

BUILDING INDIGENOUS AI CAPABILITIES<\/h3>\n

Ritu Mehrotra, CEO and Co-Founder of Shunya Labs, echoed the call for stronger policy backing for AI startups. She said India has the talent to build world-class AI systems but needs better support to move faster.<\/p>\n

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\u201cMuch of our innovation still depends on global Big Tech platforms,\u201d Mehrotra said. \u201cThis Budget presents an opportunity to prioritise strategic investment in indigenous AI, especially in computing infrastructure and foundation model development.\u201d<\/p>\n

She added that reducing dependence on foreign platforms is not just about self-reliance. \u201cIt is about building a trusted AI ecosystem that reflects India\u2019s needs, values and priorities,\u201d she said.<\/p>\n

FOCUS SHIFTS TO EXECUTION AND SCALE<\/h3>\n

Investors say India\u2019s startup ecosystem has matured significantly, especially beyond software-led models. Ankit Kedia, Founder and Lead Investor of Capital-A, said founders are now building with greater technical depth across sectors such as deeptech, advanced manufacturing and climate systems.<\/p>\n

\u201cCapital and talent are converging, and early validation is increasingly visible,\u201d he said. However, Kedia noted that scaling such businesses remains challenging.<\/p>\n

\u201cDeeptech and manufacturing startups need support through long development cycles involving certification, testing and early deployments,\u201d he said, adding that trust and reliability are critical in these sectors.<\/p>\n

WHAT THE BUDGET COULD DO NEXT<\/h3>\n

Kedia believes India has a unique advantage due to its scale and mission-led government demand. \u201cWith the right support, domestic companies can gain early credibility and emerge as globally competitive suppliers,\u201d he said.<\/p>\n

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He called on the Union Budget to strengthen the execution ecosystem through shared testing facilities, predictable regulations and incentives aligned with longer gestation periods. \u201cThese signals can also bring more domestic institutions and family offices into deeptech investing,\u201d he added.<\/p>\n

As expectations build ahead of the Budget, startup leaders agree on one thing: easing compliance, boosting domestic funding and investing in core technology infrastructure could determine how well India\u2019s innovation story unfolds in the years ahead.<\/p>\n

– Ends<\/p>\n

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Published By: <\/p>\n

Jasmine anand<\/p>\n<\/div>\n

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Published On: <\/p>\n

Jan 28, 2026<\/p>\n<\/div>\n<\/div>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… domestic capital and strengthening critical technology<\/span> infrastructure. While India\u00e2\u0080\u0099s startup … community is greater focus on technology<\/span> infrastructure, particularly in areas such … still depends on global Big Tech<\/span> platforms,\u00e2\u0080\u009d Mehrotra said. \u00e2\u0080\u009cThis Budget …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-67382","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/67382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=67382"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/67382\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=67382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=67382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=67382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}