Will global recession impact India or not?

The signs of the oncoming global recession are already evident with the potential layoffs across global tech firms. Such a scenario hasn't been restricted to the West with the slowdown in global funding also hitting Indian startups, who are now forced to keep a tight leash on finances.

Moreover, India's share of total venture capital (VC) funding has fallen exponentially in the third quarter (Q3) of FY 2022 along with the fact the India's unicorn rush is also slowing down.Global macro-economic conditions like fears of global recession are why there have been fewer unicorns in 2022 as compared to 2021.

While, the growing risk of global recession in 2023 makes investors more cautious with their money due to the risks associated with it, the investors could actually benefit from it by choosing to put their money in startups at more realistic valuations. While India isn't completely coupled with the global economy, the country is not immune to recession in the US which will impact commodity prices, trade, and capital flows.

- Roma Priya, Founder, Burgeon Law