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The Indian startup and venture investor ecosystem is looking forward to better business ties and stronger fund flow between India and the US as Donald Trump becomes the 47th US president. US Election 2024 US Election Result Live Updates Swing state results deciding who'll be new POTUS Trump vs Harris: Who’s winning which state? Full list Startup industry executives are watching out for Trump’s policies and their impact on inflation in the US. In 2021, when the US Federal Reserve adopted a low-interest regime to stimulate economic activity amid Covid-19, it helped startup funding in India reach an all-time high of $36 billion.
Later, as the US central bank increased rates to curb inflation, fund flow tightened to a seven-year low of $8.8 billion in 2023. Trump’s stance against China could be ultimately beneficial for the Indian venture ecosystem, which could be a preferred geography for long-term investment funds.
“There will be some policy clarity with the Republicans controlling the White House, Senate as well as Congress. Any tax cuts would definitely be a major plus for companies as well as large crossover funds,” said a New Delhi-based partner at a venture capital firm. Finance Financial Literacy for Non-Finance Executives By - CA Raja, Chartered Accountant | Financial Management Educator | Former AVP - Credit, SBI View Program Marketing Modern Marketing Masterclass by Seth Godin By - Seth Godin, Former dot com Business Executive and Best Selling Author View Program Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital Marketing Masterclass by Pam Moore By - Pam Moore, Digital Transformation and Social Media Expert View Program Marketing Digital marketing - Wordpress Website Development By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert View Program Strategy ESG and Business Sustainability Strategy By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Leadership Business Storytelling Masterclass By - Ameen Haque, Founder of Storywallahs View Program Marketing Future of Marketing & Branding Masterclass By - Dr.
David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding Consultant View Program Artificial Intelligence(AI) AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Advanced C++ Mastery: OOPs and Template Techniques By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Finance: Finance Beginner Course By - elearnmarkets, Financial Education by StockEdge View Program Data Science SQL Server Bootcamp 2024: Transform from Beginner to Pro By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program Artificial Intelligence(AI) AI and Analytics based Business Strategy By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI View Program Web Development Intermediate Java Mastery: Method, Collections, and Beyond By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Advanced Java Mastery: Object-Oriented Programming Techniques By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI for Everyone: Understanding and Applying the Basics on Artificial Intelligence By - Ritesh Vajariya, Generative AI Expert View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development C++ Fundamentals for Absolute Beginners By - Metla Sudha Sekhar, IT Specialist and Developer View Program Additionally, Trump’s opponent Kamala Harris’ stance on increasing taxes on American companies had created a sense of anxiety among Indian startups that are registered in the US. Among the startups looking to reverse flip their holding entity to India, there was some degree of anxiety that the tax outgo could shoot up if Harris came to power. Very recently fintech unicorn Groww reverse-flipped to India.
Razorpay and Meesho are working on the process to shift their registered offices to India. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories “We were slightly concerned about increasing taxes in the US. This would have a direct impact on companies who are looking to reverse flip to India.
But with the Trump presidency that does not seem to be imminent,” the founder of a unicorn startup said on the condition of anonymity. On a broader note, venture investors said after the last few months of policy uncertainty due to the elections, there will be more sanity in the ecosystem and long-term investment plans will be drawn up. “American funds have gotten extremely careful about investing in the Chinese tech ecosystem; some of that capital may be diverted towards India, provided our markets and policies remain consistent,” said Sanjay Swamy, partner at Prime Venture Partners, a Bengaluru-based venture firm.
There are some concerns around the inflationary impacts of Trump’s policies, which had been a major issue during his last tenure in office. Some of the investors said that they will watch out for the financial impact of Trump’s protectionist policies on the American domestic scene. “Trump’s policy rhetoric around immigration and trade is inherently inflationary.
..this could cause the US Federal Reserve to hold or hike rates, and in turn have an impact on investments,” said the partner cited in the beginning of the story.
“Over the last few years, there has been an increase in startup investments by domestic investors but India isn’t fully deleveraged from foreign funding, yet,” he added. Indian partners at American venture firms said the overall thinking in the ecosystem is that Trump will slow down investments in China, so there is expectation that investments in semiconductor and artificial intelligence (AI) firms in China will be slow. "Investments or collaborations in AI and semiconductors might have a pull back of sorts from China and Taiwan, given Trump's stance on China.
There might be a push on reducing dependence on territories which have geopolitical sensitivity to China, which might translate into some favourable push for us in India. Though we need to understand that some of these changes are going to take longer, sustained effort beyond his presidency,” said South Park Commons partner Prateek Mehta. Additionally with JD Vance, who was a venture capitalist himself in his professional life before joining politics, set to become the next vice president, there is a sense among technology investors that he will be supportive of the larger tech and startup ecosystem.
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