India eyes start-up exchange programme with its neighbours

India eyeing a start-up exchange programme with its neighbouring countries to boost entrepreneurial cooperation in the region. While a framework has already been put in place for such an exchange with Bangladesh, a similar initiative is likely to be rolled out for Bhutan and Nepal, officials said.

The framework with Bangladesh would broadly support exchange visits between 50 startups from India and the neighbouring countries to foster partnerships, business relations and knowledge exchange.

“The idea to facilitate exchange of ideas in the new and emerging areas such as tech and innovation in the region and also incubators,” the official said, adding this could provide the much-needed fillip to the economy of the region.

Some exchange programmes have already been held but the plan is to have more structured and broader exchange programme every year with startups in Nepal and Bhutan. “This could energise and create a robust interface between entities there and here,” the official said, adding that there was keenness about such exchanges in the backdrop of the number of unicorns that India has seen emerge over the last three years.

This will help develop MSMEs in the region and support the global value chains that are looking to shift base, the official said.

India had in 2016 launched the Startup India Initiative to support entrepreneurs, build a robust startup ecosystem and transforming the country into a country of job creators instead of job seekers.

Under the programme, the government has provided easier compliance, easier exit process for failed startups, legal support, fast tracking of patent applications and a website to reduce information asymmetry. The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised more than 61,000 startups as on date. These startups are spread across 55 industries and have been large job creators. As much as 45% of the startups are from Tier-2 and Tier-3 cities and 45% of them are represented by women entrepreneurs.

Officials say that startups have the potential to accelerate integration into global value chains and create global impact.

And, with India pushing building resilient Global Value Chains (GVCs) during its G20 presidency, it is seen that development of such regional chains with focus on startup with regional footprint can help the region grow. The focus is to enhance participation of developing countries and the Global South in GVCs and building resilient GVCs to withstand future shocks.