Union Cabinet approves MoU between US and India for strengthening the start-up ecosystem

The Union Cabinet chaired by India’s Prime Minister, Shri Narendra Modi, approved the draft Memorandum of Understanding (MoU) between the United States of America and the Republic of India to enhance innovation ecosystems through an innovation handshake.

The 5th India-U.S. Commercial Dialogue was held on 10th March 2023 during the visit of U.S. Secretary of Commerce Gina Raimondo between 8-10 March.

At the meeting the Commercial Dialogue was re-launched with strategic focus on supply chain resiliency, climate and clean technology cooperation, advancing inclusive digital economy, and facilitating post-pandemic economic recovery especially for SMEs and start-ups.

Further, it included launch of a new Working Group on Talent, Innovation and Inclusive Growth (TIIG) under the Commercial Dialogue.

It was noted that this Working Group would also support efforts of Start-up ecosystem working towards goals of iCET, particularly in identifying specific regulatory hurdles to cooperation and fostering greater connectivity between our innovation ecosystems with focus on start-ups through specific ideas for joint activities.

Noteworthy, the Joint Statement released by President Biden and Prime Minister Modi in June 2023 welcomed focused efforts to establish an “Innovation Handshake” that shall connect the two sides’ dynamic startup ecosystems, address specific regulatory hurdles to cooperation, and promote innovation and job growth, particularly in critical and emerging technologies (CET). 

Further, to formalize the cooperation under the Innovation handshake and implement the guidance, a G2G MoU has been signed between India and the US on Innovation Handshake on 14th November, 2023 at San Francisco, USA.

The scope of cooperation would include a series of India- U.S. Innovation Handshake events, round tables with private sector, including hackathon and “Open Innovation” programs, information sharing and other activities.

The MoU laid the groundwork for two future Innovation Handshake events scheduled to take place in India and the United States in early 2024, which include an investment forum aimed toward helping U.S. and Indian startup companies take their innovative ideas and products to market and a “hackathon” in Silicon Valley where U.S. and Indian startups will pitch ideas and technologies to help address global economic challenges.

Besides, the MoU would contribute significantly strengthening Commercial opportunities in high tech sector.

Source: https://pib.gov.in/