Why Indian Startups Should Care About This New Pact With US?

India has joined the US and 12 other IPEF (Indo-Pacific Economic Framework for Prosperity) partners to ink the IPEF Supply Chain Resilience Agreement in San Francisco. India's Commerce and Industry Minister Piyush Goyal described the international agreement as the first of its kind in strengthening global supply chains & fostering adaptability.

During a bilateral discussion, Piyush Goyal and US Secretary of Commerce Gina Raimondo talked about many areas of the rising economic engagement and commercial cooperation between the US and India. Encouraging innovation ecosystems through an innovation handshake is the subject of a Memorandum of Understanding (MoU) that was signed. The goal of the MoU is to link startup ecosystems, especially in Critical and Emerging Technologies (CET).

The MoU aims to connect both the startup ecosystems, address specific regulatory hurdles to cooperation, share information and best practices for startup fundraising and promote innovation and job growth, particularly in critical and emerging technologies as identified under the India-US initiative for Critical and Emerging Technology (iCET).

Piyush Goyal described the Memorandum of Understanding as having the potential to boost economic activity, draw in investment, and create jobs. The US-India Business Council (USIBC) and the Confederation of Indian Industry (CII) co-hosted the event. Among others, the CEOs of many ICT businesses, Startup India, and the National Association of Software and Service businesses (NASSCOM) outlined their support.

The announcement set the stage for two more Innovation Handshake events that will occur in early 2024 in the US and India. One of the events is an investment forum designed to assist companies from both nations in bringing their creative ideas and goods to market.

India is looking to make further headway in the ongoing IPEF negotiations. Launched in May 2022, IPEF currently has 14 member nations: Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, US and Vietnam.