With Donald Trump securing a second term in the 2024 US election, the business and tech world, especially the Indian IT industry, faces a new era of uncertainty and opportunity. In today's edition of Tech3, we look into the key areas where Trump's second term could have lasting effects, from the H-1B visa programme to the future of cryptocurrency, and Musk's influence in the White House.

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• IT sector impact: The rhetoric around anti-immigration during Trump’s election campaign had raised concerns among the tech circles that it might spill over to H-1B visas, used mostly by Indian IT companies to bring in talent. The concerns also carry weight since Trump tried to make the earlier laws redundant in his previous term, however, it was later dumped on procedural grounds. Whether or not H1-B visa rules will be eased or tightened is a matter of time, but analysts are deeply divided on what Trump’s presidency might mean for Indian IT. Find out more
  

• Crypto landscape: Even before Trump’s victory was officially confirmed, Bitcoin soared to a record-high of $75,000. With his re-election as president and his promise to make the US the "crypto capital of the planet," both retail and institutional investors are buzzing with optimism. This surge in confidence was also visible on Indian crypto exchanges, which have reported a sharp increase in hourly trading volumes. Go deeper

• Musk's ‘Trump card’: In a second Trump administration, Elon Musk could be more than just a supporter; he could play a pivotal role in shaping policy that benefits his vast business empire. From tax cuts to government contracts, Musk's companies could see huge advantages. Trump has praised Musk and even floated the idea of him serving as a "secretary of cost-cutting." While Trump 2.0 could boost Musk’s business interests, it also raises questions of conflict of interest. Find out more

• Trade blows to continue?: With Trump’s 2024 presidential win, China is preparing for another challenging period of US-China relations, particularly in trade and technology. A Barclays report highlights the risk of a "full-blown trade war," with China possibly rolling out a larger stimulus package in response. Go deeper
  

• Indian VCs see opportunities: Indian venture capitalists are optimistic that Donald Trump’s victory in the 2024 US election could benefit the startup ecosystem. With JD Vance, a former VC, as Trump’s VP pick, the combination of a Republican White House and Congress may bring tax cuts and business-friendly policies. More on that here

• Market reaction: Trump's comeback triggered a rally in Indian markets, bouncing back after weeks of selling. While US markets cheer his corporate-friendly policies, global markets—particularly in China—are reacting cautiously. For Indian investors, the key will be the response from Foreign Institutional Investors (FIIs), especially after over Rs 1 lakh crore in outflows in October. Find out more

• Artificial intelligence (AI) pioneer and Microsoft AI CEO Mustafa Suleyman said India is one of their fastest-growing markets with extremely talented engineers and developers working in the country. He further said it is important to be thoughtful and deliberate when it comes to regulation in the AI space.
  
  
• S Krishnan, secretary of the Ministry of Electronics and Information Technology (MeitY), suggested that creating a large language model (LLM) from the ground up may not be practical, proposing instead that India adapt existing models to better serve specific sectors.
  
  
• Business software maker SAP will hire ”over proportionally” in India, which will soon house its biggest workforce, overtaking the headcount in its German headquarters, CEO Christian Klein said. Klein said a majority of future investments into research and development (R&D) and customer success will go to India, but did not divulge specifics on hiring numbers or timelines.  

• Games24x7 plans to back startups beyond the gaming sector in India as the skill-based gaming unicorn aims to position itself as a technology company. Co-founder Bhavin Pandya said they are focusing on startups that are exploring applications of AI and machine learning across industries and domains.
  
  
• Easy Home Finance, a first-time home loan provider, has raised $35 million in its Series B funding round, led by Claypond Capital, which is chaired by Ranjan Pai of Manipal Group, along with Sumitomo Mitsui Banking Corporation’s Asia Rising Fund. The company plans to use the fund for asset book building and reach approximately $300 million in assets in the next 24 months.