Bad Economy – boon for Indian startups?

Everyone is talking about how bad the current economic condition is and how its affecting all companies worldwide. Everyday you get to hear about companies laying off people and trying to be cautious and use cash wisely. VCs are either asking their companies to cut costs, shut down or get sold. This makes me wonder – Isn’t this the best time for smart startups in India to leap forward?

Startups in India can operate at a very low cost compared to the ones in US targeting the same audience. Just by using cash wisely they can make a huge difference. In US, startups have to spend a lot of money on office space, lawyers, accountants and specially employee salaries. This is quite cheap in India and at the same time you can hire equally good people (atleast on the Technology side)

VCs investing in Indian startups should not be cautious, but infact should take advantage and do smart investments. They can get a bigger share in the company at a low valuation. When almost all US-based companies have slowed down in innovation and speed, I feel its the right time for indian startups to leap forward and gain ground.

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