Indian tech entrepreneurs more successful than returning NRIs: ORF study

For decades, India’s startup myth has revolved around the triumphant return of the global Indian. That successful Silicon Valley veteran who comes home to build unicorns, injecting big capital and ambition into the domestic ecosystem. But a new research paper from the Observer Research Foundation flips that narrative on its head.

Welcome to what researchers are calling the “Indian Returnee Paradox.” It’s a structural shift, the report argues, where homegrown Indian founders are increasingly outperforming diaspora returnees in building enduring, commercially successful startups for India.

And their conclusion isn’t anecdotal. It’s data-backed.

The study analysed 596 Indian high-tech startups founded between 2016 and 2023. What they found is that locally rooted entrepreneurs now lead on core performance metrics including longevity, revenue growth and valuation.

Local Indian founders outperform returnees on core business outcomes

The most striking finding of the ORF report is that domestic entrepreneurs are delivering stronger long-term outcomes than returnee founders.

Contrary to long-standing assumptions in the literature, new research suggests that #India’s #startup outcomes are now strongest among founders trained and embedded domestically: @wadhwa, AnnaLee Saxenian, D P K Muthukumaraswamy & @MuhiBala https://t.co/Kl0L5LPHwM

— ORF (@orfonline) February 9, 2026

Startups led by India-based founders are outperforming diaspora returnees on metrics such as revenue growth, increase in valuation, hiring and company survival rates. According to the ORF study, this marks a decisive departure from trends of earlier decades when overseas exposure and Silicon Valley networks were considered crucial advantages in surviving and succeeding in India’s tech ecosystem.

Returnee NRI tech founders still retain an early-stage advantage in funding access and credibility, says the ORF study. But over time, locally grounded founders are winning the commercial marathon.

Deep local market understanding beats global exposure

The study highlights another key structural shift, that understanding India deeply now matters more than having worked abroad.

Also read: Indian startup patents tech that lets you tap your card on your own phone to make online payments at home

Whether it’s AI, fintech or enterprise software, founders embedded in India’s market are better positioned to adapt technology for local realities, the ORF study suggests. This is because India’s regulatory complexity, linguistic diversity and price sensitive market demands hyper-local solutions.

In short, building for India increasingly requires being of India, being more clued into what India is all about. Stuff like nuanced understanding of consumer behaviour, infrastructure gaps and digital public platforms gives domestic founders a strategic edge over returnees attempting to “import” global playbooks, argues the ORF study.

India’s startup ecosystem has matured beyond NRI dependence

Another major takeaway of the ORF report is that India no longer needs returning NRIs to drive its startup engine.

The research argues that the ecosystem has matured significantly, with stronger domestic capital networks, digital infrastructure and talent pipelines. In turn, this is fast reducing reliance on diaspora-led entrepreneurship. The Indian government’s myriad policies encouraging self-reliance in deep tech and extending startup recognition timelines further reinforce this shift.

What once required global exposure can now be built locally – from AI stacks to fintech rails.

The rise of India-first innovation

Perhaps the most telling insight is philosophical. India’s startup success is increasingly being shaped by founders building specifically for Indian problems rather than global-first ambitions.

This “India-first” mindset – shaped by domestic experience and proximity to users – is translating into stronger commercial performance and longer-lasting companies.

The implication is clear, notes the ORF study: the centre of gravity in Indian tech entrepreneurship has shifted home.

The returnee entrepreneur isn’t obsolete, far from it. But the assumption that global exposure automatically translates into startup success in India is rapidly losing relevance.

Also read: Better than Google Gemini and ChatGPT? Indian startup Sarvam AI claims to beat global models