With Trump re-elected as president, investment experts are hopeful that changes in U.S. policies could benefit the Indian startup sector. Trump's strong stance against China may lead to increased American investments flowing toward India. In 2021, when the U.S. Federal Reserve implemented a low-interest regime, Indian startup funding surged to $36 billion. However, as interest rates rose, funding dropped to $8.8 billion in 2023.

With Republicans in control of the White House, Senate, and Congress, key investment experts anticipate policy stability. "There's hope that Trump will introduce tax cuts, which would benefit both large companies and substantial funds," said a venture capital partner in Delhi.

Trump’s opponent, Kamala Harris, had previously created concern among Indian startups registered in the U.S. with her stance on corporate tax increases. Companies like Groww have recently “reverse-flipped” their operations back to India, while others like Razorpay and Meesho have initiated the process of shifting their offices to India.

After the election, investors expect a more stable investment environment and greater consistency in future investment plans.

“Trump’s anti-China policies could have a favorable impact on the Indian startup investment sector,” said Sanjay Swamy, a partner at Prime Venture Partners.