India could surpass China economically in 10-15 years, says Tesla backer Tim Draper

When asked about India's role during the Donald Trump administration, Draper reportedly said, "The US will continue to grow at a pretty fast rate if Trump does all the things that he said he can do. So the US will keep growing. China is probably going to flatline. And India is going to cross China pretty quickly. And these two lines might cross at some point, too. But I don't think it's too long."

"If India stays an open democracy and China stays in command and control, India will pass China, may be in 10-15 years," he added.

Draper, who has backed Indian companies since the 1990s, said he’s more optimistic than ever about the country's prospects.

"As long as you keep having leaders who promote freedom and trust and create very clear rules so everybody follows them. As long as you have that, I'll keep investing here."

The venture capitalist said he was bullish on China but stopped investing there after "they got that horrible dictator", in an apparent reference to Chinese President Xi Jinping. "Now I don't invest there. It's too bad because China was just taking off and then this guy just put a kibosh on it."

While some critics argue that Indian startups don’t deliver the same returns as their Western counterparts, Draper disagreed.

"And the reason I disagree is that I don't think we've given it enough time. Because as a seed investor, I'm really not looking for a return for at least seven years. And most of the big wins take 15 years to get to maturity."

He also spoke fondly of his family's history with India, recalling how his father backed Rediff in the late 1990s, calling it a “huge success.” Draper himself was an early investor in Hotmail, co-founded by Indian entrepreneur Sabeer Bhatia.

"I have been investing in India pretty much since he started that fund because he'd bring these deals up and I go, I'll take that one. And then, Sabeer Bhatia came, And then it all blends together because all I'm looking at is the entrepreneur and not where their residency is," he said.