Trump Card Strikes Again! What's Next For Indian Start-up Ecosystem? Indians have been closely following the development of a second term for Trump, as his policies can have significant impact on key areas such as trade, the stock market, and H-1B visa regulations
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After a bitter U.S. Elections 2024 election campaign, Donald Trump has emerged victorious over Kamala Harris. The verdict was in Trump's favour after a smooth sweep in the state of Pennsylvania with 19 electoral votes.
With this election verdict, the 78-year-old will become the first president to serve two non-consecutive terms since 1892.
"We are going to turn it around. This will forever be remembered as the day Americans regained control of their country," Trump said while addressing supporters. "America is a nation of builders. Soon, you will be free to build," tweeted entrepreneur and Trump supporter Elon Musk.
Trump led with 277 electoral votes against Harris' 224.
US-India rapport
Indians have been closely following the development of a second term for Trump, as his policies can have significant impact on key areas such as trade, the stock market, and H-1B visa regulations.
"As you build on the successes of your previous term, I look forward to renewing our collaboration to further strengthen the India-US Comprehensive Global and Strategic Partnership. Together, let's work for the betterment of our people and promote global peace, stability and prosperity," posted Indian Prime Minister Narendra Modi.
US lawmaker and GOP leader, Richard McCormick said that the two could grow the global economy together, adding that both New Delhi and Washington "need each other" today according to ANI.
On Wednesday, the Indian stock market's benchmark indices, Sensex and Nifty 50, rallied over one per cent in response to the election results. The Sensex gained 900.50 points, closing at INR 80,378.13, while the Nifty 50 rose 270.75 points to INR 24,484.05.
Indian ecosystem
Foreign brokerage firm Nomura suggests that India could benefit relatively under Trump's policies, thanks to its growth driven by strong domestic demand.
The early hours of Wednesday saw a surge in cryptocurrency, particularly Bitcoin, courtesy of Trump's lead. The cryptocurrency touched an all-time high of USD 75,361.09. "We are excited about Trump's win given his pro-crypto approach…If the US government positions Bitcoin as a strategic reserve asset, we will see many governments including India following suit in the upcoming years," said Vikram Subburaj, CEO, Giottus.
Indian exchanges like CoinSwitch and Giottus saw BTC price rise by around 6.50 percent to trade at USD 75,975.
"The tech sector is the key lynchpin of the US-India bilateral engagement. US is the largest market for India's $254 bn tech sector where its overall contribution is $80 bn to US GDP. Importantly, the industry plays a key role in supporting US companies in strengthening the US economy. Conversely, India is a prime destination for American businesses, with over 1,000 U.S. companies that are driving innovation and leveraging India's digital infrastructure to create competitive solutions," commented Nasscom.
Earlier this year, Musk called Tesla's India entry a natural progression. The country's Electric Vehicle (EV) market size is estimated to be USD 34.8 billion in 2024, and is expected to reach 120 billion USD by 2030 according to Mordor Intelligence. However, the tech entrepreneur halted his India visit due to "heavy obligations" and said the plan was pushed to later this year. The visit is yet to happen.
So, can Trump's return pull Musk back to India? The latter was set to make major announcements about the USD 2-3 billion EV factory in India and some developments related to Starlink. Experts predicted that Tesla's arrival could invigorate the EV market which is experiencing a slump. The entry of a major player like Tesla could potentially increase EV sales by 66 per cent in 2024.
John Podesta, Senior Advisor to the White House on Climate Policy, back in August shared that the US planned a USD one billion investment in clean energy manufacturing in India. Talking on sustainable projects, Trump has expressed his disbelief in climate change, often calling it a 'hoax'. The Inflation Reduction Act passed under the Biden administration has propelled hundreds of new clean energy projects, from electric vehicle and solar-panel factories to large-scale wind and solar projects. The new president-elect wishes to dismantle the act.
