Tax considerations in the Expert Committee Report titled
"Onshoring the Indian Innovation to GIFT IFSC"
1. INTRODUCTION
1.1 Indian startup ecosystem has evolved considerably since the
early days of economic liberalization. The startup ecosystem has
become an engine of growth and job creation, transforming India
into a global hub of innovation and entrepreneurship. Today, India
has emerged as the third largest ecosystem for startups globally,
with third highest number of unicorns. As per the Economic Survey
2022-231, India has become the most innovative nation in
the lower middle-income group overtaking Vietnam and leading the
Central and Southern Asian Region.
1.2 While, on one hand, India's startup ecosystem is
achieving remarkable growth, on the other hand, a trend of Indian
startups externalizing / flipping to offshore jurisdiction has been
daunting.
