Startup India has been a big success, but teething issues such as the angel tax might spoil the party said John Chambers, chairman emeritus, Cisco.

In an exclusive conversation with Kevin Lee of CNBC-TV18, the global business leader spoke about data localisation, changing US visa norms and the progress of the start-up ecosystem in India.

Chambers said he would give a B+ grade for the progress of startup India but angel tax makes no sense and does tremendous harm to the startup community.

The process of taking companies public in India is bureaucratic and very slow, he said, adding that so many startup companies does not have their headquarters in India, which is not good.