American venture capital is flowing into India like never before. Here’s why

From Yahoo Finance: 2025-05-23 15:52:00

India is poised to produce a thousand billion-dollar startups in the next two decades, attracting investors like Aditya Mishra. With 800 million people under 35 and a burgeoning tech-savvy class, India is on track to match China and the U.S. in tech innovation, with AI sector growth at 32% annually.

As India’s tech sector flourishes, global tech giants are setting up shop, fueling a surge in startups specializing in AI, ML, robotics, deeptech, logistics, and fintech. The country led the world with 338 IPOs in 2024, raising nearly $21 billion, reflecting a vibrant and evolving ecosystem conducive to global growth.

BAT VC is pioneering a dual-market investment strategy, backing U.S. startups expanding into India and Indian startups going global. Despite challenges like regulatory nuances and governance issues, Mishra sees India as a hub for world-class innovation and a prime destination for tech investment.

Goldman Sachs projects India could surpass the U.S. as the world’s second-largest economy by 2075, driven by its youthful population, booming tech sector, and expanding capital markets. If India’s unicorns replicate the success of U.S. giants, the country could see trillions in startup value, signaling a monumental industrial shift akin to Silicon Valley or the Chinese tech boom.

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