US venture capital firms investing in India expect federal budget 2023 to support the growth and development of the country’s startup ecosystem, according to top investors.
Federal Finance Minister Nirmala Sitharaman is set to present the federal budget for fiscal year 2023-24 to parliament on February 1. The venture capitalist community here in the US is very excited given the large number of unicorns that have emerged from India in recent years.
According to Arun Kumar, managing partner of Celesta Capital, venture capitalists want to capitalize on Indian talent.
As a US-based venture capital firm investing in India, Kumar told PTI that he has a strong interest in policies and initiatives that support the growth and development of India’s startup ecosystem.
Budget signals and allocations that encourage the growth of new ventures based on innovation and entrepreneurial spirit would be particularly welcome, Kumar said.
Kumar served as Assistant Secretary of Commerce for Global Markets and Director of the United States and Foreign Commerce Service (USFCS) during the Obama administration.
Kumar hopes the budget will reflect the government’s continued commitment to fostering a business-friendly environment that encourages foreign investment and supports the growth of start-ups, including in the deep tech sector.
The geopolitical scenario and pandemic have created a need to diversify supply chain sources, giving India an opportunity to strengthen its participation as a trusted node in global value chains, he said.
Such aspirations require policies that make both imports and exports easy and cost-effective in a way that can increase supply chain efficiency and make India’s manufacturing sector more competitive. Kumar, who served as chairman, said he served as CEO of India’s KPMG for a five-year term that ended in February last year.
According to Kumar, the growth of the manufacturing sector is already creating attractive new opportunities to develop technologies and solutions to manufacture products for domestic and global use and to enhance manufacturing capabilities.
We believe that with the right policies in place, India has the potential to become a world leader in many technological areas, and we look forward to being part of that journey.
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