Venture capital firms based in the United States that are investing in India are looking forward to the Union Budget 2023 to provide support for the expansion and progression of the startup industry within the country, according to a leading investor.

The venture capital community in the United States is eagerly awaiting the Union Budget 2023-24, which is set to be presented by Union Finance Minister Nirmala Sitharaman on February 1. This anticipation is due to the growing number of successful startups, known as unicorns, that have emerged from India in recent years.

According to Arun Kumar, managing partner of Celesta Capital, venture capitalists are eager to invest in talented individuals in India, in order to capitalize on the opportunities presented by the country.

Arun Kumar, the Managing Partner of Celesta Capital, a US-based venture capital firm investing in India, said that the firm is highly invested in the policies and initiatives that will promote the expansion and progression of the startup ecosystem in India, he said it to PTI.

Kumar added that signals and allocations in the upcoming Union Budget that promote the growth of innovative and entrepreneurial ventures would be particularly beneficial. He said that the firm is specifically looking for budget allocation which will help to further the growth of new ventures based on innovation and entrepreneurship.

Kumar has a background in government service, having served as the assistant secretary of Commerce for Global Markets and director general of the US and Foreign Commercial Service (USFCS) during the Obama Administration.

Kumar also highlighted that the firm is expecting the government to demonstrate its continued commitment to fostering a business-friendly environment that supports foreign investment and the growth of new and emerging companies, particularly in the deep-tech space. He said that they are eager to see the government’s commitment in the Budget to encourage foreign investment and support the growth of new ventures, including in the deep-tech space.

In addition to the startup ecosystem, Kumar also noted that the current geopolitical scenario and the impact of the pandemic have highlighted the need for diversification of supply chain sources, and presented India with an opportunity to increase its role as a reliable participant in global value chains. He said that the current scenario and pandemic have increased the need to diversify supply chain sources, and India could capitalize on this opportunity to enhance its participation as a trusted node in global value chains.

Kumar stated that to achieve this, policies that make it easy and cost-effective to import and export goods are necessary, and this would help to enhance the efficiency of supply chains, thereby increasing the competitiveness of Indian manufacturing. He also highlighted that as a former Chairman and CEO of KPMG in India for a five-year term that ended last February, He has the experience to understand the importance of ease of import and export for supply chain enhancement and competitiveness of Indian manufacturing.

Kumar further added that the expansion of the manufacturing sector is already creating new opportunities for the production of goods for both domestic and global consumption, as well as the development of technologies and solutions that improve manufacturing capabilities. He believes that with the right policies in place, India has the potential to become a global leader in many technology sectors and the firm is excited to be a part of that journey. He said this in response to a question.