U.S.-based General Catalyst intends to invest $5 billion in India over the coming five years

U.S.-based General Catalyst intends to invest $5 billion in India over the coming five years

General Catalyst Commits $5 Billion to India’s Strategic Sectors Over Five Years

U.S.-based venture capital firm General Catalyst has announced plans to invest $5 billion in India over the next five years, signaling a significant shift toward sectors critical to national resilience and global competitiveness. The firm, which merged with Indian seed fund Venture Highway in 2025 to strengthen its local presence, is prioritizing manufacturing, defense, artificial intelligence (AI), and healthcare under its "global resilience" investment thesis.

The investment strategy aligns with India's growing emphasis on self-reliance and technological innovation. General Catalyst's recent $218 million seed round in PB Health, a healthcare venture affiliated with insurance aggregator Policybazaar, underscores its focus on addressing systemic challenges in India's healthcare sector. The firm has also backed defense startups like Raphe, which produces drones and unmanned systems tailored to India's geospatial conditions, and Jeh Aerospace, which leverages India's manufacturing base to supply high-precision components to U.S. clients.

The firm's India strategy reflects broader macroeconomic trends. India's manufacturing sector has attracted $3.2 billion in private investment in 2024 alone, driven by policy incentives and a push for domestic production. General Catalyst's managing director, Neeraj Arora, emphasized the need to move beyond low-margin labor arbitrage, advocating for advanced manufacturing and sovereign capabilities in defense and electronics. The firm's investments in AI-focused ventures, such as Omli Kids and Sarvam, further highlight its alignment with India's tech-driven growth trajectory.

General Catalyst's approach combines global expertise with localized insights, leveraging Venture Highway's deep ties to India's startup ecosystem. The firm aims to foster Indo-U.S. collaboration in critical sectors, positioning India as a strategic partner in global supply chains and innovation. With its $5 billion commitment, General Catalyst is poised to play a pivotal role in India's transition toward a more resilient, technology-driven economy.