Will startups find India to be a happy stomping ground where it’s easy to start up, scale up, or even shut shop?

Even as Indian startups witnessed an unprecedented funding frenzy last year, raking in more than $36 billion in venture and private equity deals — four times that in 2015 — Indian domestic capital chasing them continues to be scarce.

The government needs to incentivise the flow of domestic capital to startups through Section 80 G-type incentives, allowing corporates to invest their mandatory corporate social responsibility (CSR) contribution in them. Also needed — specialised funds with co-participation from India Inc to invest in nation-building sectors of energy, infrastructure, healthcare and conservation, which otherwise don’t catch the eye of traditional venture capital investors.