The author, who is a keen advocate of venture capital and startups in India, explains events in the country.

Here is another commentary from Archana Jahagirdar (pictured), the founder of India-based Rukam Capital. She writes about what is happening in the Indian economy and considers the investment implications. The following article focuses specifically on Indian venture capital.

We value this expert insight into a large and growing economy. These articles are designed to get conversations going – so please respond with any views if you wish. The usual editorial caveats apply. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

2025 has obviously been a year of tremendous global economic volatility so far, but what is interesting and striking about the Indian venture capital space is that according to new data it is not only surviving but thriving, despite this very challenging international environment.

The new GlobalData report shows that Indian venture capital funding grew by 40 per cent in early 2025. The numbers are year-on-year analysis of investment value in January and February of this year and demonstrate that the Indian VC space is considerably outperforming its global peers.

GlobalData also found that deal volume rose by 11 per cent in this period in India. By contrast, global deal volume contracted 9 per cent during this period. Global funding value for venture capital investment did grow at 17 per cent, but that is rather less than half the rate in India. 

India's strength and adaptability have solidified its position as one of the leading five venture capital markets globally, representing approximately 9 per cent of all transactions and more than 4 per cent of the worldwide funding value by early 2025, according to the report.

“This growth reflects a thriving startup environment, where innovative ideas are increasingly attracting the attention of VC firms,” said Aurojyoti Bose, lead analyst at GlobalData.

“This substantial rise in value not only highlights the growing confidence of investors but also the increase in average deal size,” he added.

India's startup ecosystem, driven by sustained progress, therefore is continuing to strengthen its reputation as a prominent hub for global innovation.

“India’s growth trajectory underscores its unique position as a hub for innovation. The significant growth in both VC deal volume and value indicates that investors are increasingly recognising the potential of Indian startups to deliver innovative solutions across various sectors. This trend is likely to continue as more entrepreneurs emerge with groundbreaking ideas,” said Bose. 

This growth in the Indian venture capital space is obviously being driven in part by India’s rapid economic growth which in turn is creating an ever-larger middle class that is becoming increasingly sophisticated in its consumer habits. This means more consumer-focused startups and the growth of domestic brands.

But we would also note one other important factor. India has long been home to many of the world’s largest tech firms and Indian talent often leads many of the world’s biggest tech firms, in Silicon Valley and beyond. Traditionally, it was the global tech firms that employed Indian tech talent. 

Now what we are seeing is Indian entrepreneurs launching their own firms in large numbers and they have global aspirations. Indeed, it may be that the future nexus of international technology firms is not in Silicon Valley but the Indus Valley.