Bengaluru CEO Says He’s Done With ‘Building in India’ Dream, Sparks Debate

A social media post by Rohit Shroff, CEO of Bengaluru-based firm Aflog, has sparked an intense online debate after he announced plans to move his business out of India, citing dissatisfaction with the country’s tax and regulatory environment.

In a widely shared LinkedIn post, Shroff said he had paid over $500,000 (around Rs 4 crore) in GST and income tax over the last 12–18 months across his businesses. Despite being fully compliant, he claimed that the system treats honest taxpayers with “suspicion by default” rather than offering support or incentives.

Highlighting that only about 4–5% of Indians pay income tax, the entrepreneur argued that scrutiny disproportionately falls on this small group. He said frequent GST checks, income-tax notices and repeated clarifications create a cycle of constant oversight, with little recognition for compliance.

According to Shroff, many businesses continue to comply not because the system is fair, but because contesting notices and audits is often more expensive than submitting to them. “They pay, respond, and move on,” he noted, describing compliance as a survival strategy rather than a partnership with the state.

He further argued that India’s economic framework prioritises political majorities over entrepreneurs who build formal, tax-paying businesses. Calling such founders “politically insignificant”, he said they are easy targets for extraction while receiving little institutional backing.

Drawing comparisons with Indian entrepreneurs succeeding abroad, Shroff said the issue was not a lack of talent or ambition. He pointed out that Indians run large and successful businesses in regions like the United States and the United Arab Emirates, suggesting that systemic constraints at home discourage growth.

Declaring that he was “done with the ‘building in India’ dream,” Shroff said his goal for 2026 was to relocate and build his business elsewhere. He stressed that the decision was not driven by patriotism or resentment, but by practical realities. “This isn’t about emotion. It’s about reality,” he wrote.

The post has since gone viral, attracting mixed reactions. While several startup founders and professionals echoed concerns over regulatory pressure and compliance fatigue, others defended tax scrutiny as necessary for accountability and governance. Some users urged entrepreneurs to channel their understanding of the system into reform, while others called on policymakers to take note of the growing frustration within the startup ecosystem.