Beyond a Perk: Why ESOP Reform is the Make-or-Break Issue for India’s Startup Ambition
As India’s startup ecosystem celebrates its scale—over 200,000 DPIIT-recognized startups and 120+ unicorns—a critical structural flaw threatens its next phase of growth: the outdated and punitive framework governing Employee Stock Option Plans (ESOPs). What was once a symbolic perk has become the central battleground for talent, innovation, and long-term competitiveness. With a record IPO and exit wave creating real wealth, the ecosystem’s unified message to policymakers is clear: reforming ESOPs is no longer a request; it’s an urgent imperative for national economic strategy.
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