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Amid prolonged funding winter, corrections in valuations, and layoffs, startups have set forth critical expectations from the upcoming Interim budget 2024. Scheduled to be presented on February 1 by Finance Minister Nirmala Sitharaman , startup founders expect Union Budget 2024 to offer relief in terms of tax reforms, nurture the R&D and technology environment, and establish a venture capital fund.

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Raising domestic capital funds and retention of talent are a few measures that can strengthen the Indian startups, Infosys cofounder N R Narayana Murthy said in his latest speech at T N Chaturvedi Memorial Lecture 2024, Business Standard said in its report.

Startups in India secured a total of USD 7.8 billion through 1,085 venture capital (VC) funding deals announced from January to December 2023, according to a report by GlobalData. This marks a substantial 37.9 per cent decrease in terms of VC funding deals volume compared to the announcement of 1,748 deals during 2022.

2023 might have been India s lowest funded year in last 5 years as the funding winter continues, but the decade shows good progress. A tech savvy young population, Internet penetration, and an expanding middle class have led to an explosion of startups in India in the past decade

In a setback for Indian startups, a two-judge bench of Madras High Court on January 19 dismissed appeals against Google s app billing policy. The court has however protected these startups for three weeks by asking Google not to delist their mobile applications till then. These companies may now have to approach the Supreme Court, should they wish to appeal against this order.

In August last year, a single judge had dismissed 14 petitions by Indian startups challenging the new user choice billing system by Google. The single judge had observed that the matter falls within the jurisdiction of the Competition Commission of India and that the remedy available under the Competition Act is much more comprehensive than that available before a civil court.

While 2023 saw the lowest funding in seven years for startups, most founders expect 2024 to be better. At least 85 per cent are optimistic about raising their next round at a higher valuation this year, according to a survey conducted by venture debt firm InnoVen Capital.

India is rightly placed to seize the next 10 years as a decisive opportunity to establish itself as an unambiguous global leader in innovation and entrepreneurship. A few examples to highlight her capabilities: in December 2023, India’s stock market capitalisation surpassed $4 trillion, marking a significant achievement and making India the world’s fifth-largest stock market after the US, China, Japan, and Hong Kong.

Throughout 2023, more than 24,000 employees were reportedly laid off by 100 or more Indian startups. Driven by financial constraints and investor expectations for profitability, startups across diverse industries implemented workforce reductions to control expenditures.