India and US forge 'Innovation Handshake' to boost startup ecosystems

The Union Cabinet chaired by Prime Minister Narendra Modi has given its nod to the Memorandum of Understanding (MoU) between India and the United States.

This strategic partnership aims to enhance innovation ecosystems through what is being termed an 'Innovation Handshake. 'The announcement was made through a tweet from the office of the Minister of Commerce and Industry, Piyush Goyal, stating, "Power-packed partnership! Government led by PM @NarendraModi ji, has approved the draft MoU between India & US to enhance our innovation ecosystems through an innovation handshake. 

The MoU will connect the startup ecosystems of both sides & further strengthen cooperation in Critical&Emerging Technologies (CET).

"According to a press release by The Ministry of Commerce and Industry, the initiative, which received approval from the Indian government led by Prime Minister Narendra Modi, is poised to connect the startup ecosystems of both nations.

The MoU, focusing on Critical & Emerging Technologies (CET), will play a pivotal role in further strengthening cooperation between India and the US in the realm of deep tech startups.

The genesis of this collaboration can be traced back to the 5th India-U.S. Commercial Dialogue held on 10th March 2023, during the visit of US Secretary of Commerce, Gina Raimondo, the press release stated.

The Commercial Dialogue relaunched with a strategic focus on various areas, including the launch of a new Working Group on Talent, Innovation, and Inclusive Growth (TIIG).

This group, formed under the Commercial Dialogue, was designed to support the efforts of startups working towards the goals of iCET (Innovation in Critical and Emerging Technologies), read the press release.

The Innovation Handshake gained prominence following the Joint Statement released by President Biden and Prime Minister Modi in June 2023.

It was conceived to connect the dynamic startup ecosystems of both nations, address regulatory hurdles, and promote innovation and job growth, particularly in critical and emerging technologies.

The formalization of this collaboration occurred on 14 November 2023, with the signing of a Government-to-Government (G2G) MoU between India and the US on the Innovation Handshake, read the press release.

The MoU outlines a comprehensive scope of cooperation, including India-U.S. Innovation Handshake events, round tables with the private sector, hackathons, and "Open Innovation" programs. Two significant events are scheduled for early 2024 as part of this collaboration. 

The first is an investment forum aimed at assisting U.S. and Indian startup companies in bringing their innovative ideas and products to market, read the release.

The second is a hackathon in Silicon Valley, where startups from both nations will pitch ideas and technologies to address global economic challenges.

This MoU is anticipated to significantly contribute to strengthening commercial opportunities in the high-tech sector.

As India and the US join hands through this 'Innovation Handshake,' the collaboration is poised to drive technological advancements, foster entrepreneurship, and create a thriving ecosystem for startups in critical and emerging technologies.