India recently cemented its commitment to strengthening global supply chains by joining the US and 12 other nations in signing the IPEF Supply Chain Resilience Agreement under the Indo-Pacific Economic Framework for Prosperity (IPEF). Piyush Goyal, India’s Commerce and Industry Minister, emphasized the historic nature of this international agreement during the third in-person IPEF Ministerial meeting in San Francisco on November 14. This pact aims to enhance global supply chain resilience and foster adaptability.
During the meeting, Goyal engaged in several bilateral discussions, including a significant one with US Secretary of Commerce Gina Raimondo. The outcome was the signing of a Memorandum of Understanding (MoU) titled ‘Enhancing Innovation Ecosystems through an Innovation Handshake.’ This MoU focuses on connecting the startup ecosystems of both nations, particularly in Critical and Emerging Technologies (CET). The agreement seeks to address regulatory hurdles, facilitate information sharing, promote best practices for startup fundraising, and stimulate innovation and job growth in identified critical and emerging technologies.
Goyal expressed optimism about the positive impact of the MoU on economic activity, investment attraction, and job creation. The event, co-hosted by the US-India Business Council and Confederation of Indian Industry, garnered support from organizations like NASSCOM, Startup India, and CEOs from various ICT companies.
The MoU laid the foundation for upcoming Innovation Handshake events scheduled in India and the US in early 2024, including an investment forum to help startups bring their innovative ideas and products to market.
The broader context of India-US commercial cooperation was highlighted during the fifth India-US Commercial Dialogue, where discussions centered on supply chain resilience, climate and clean technology cooperation, advancing an inclusive digital economy, and facilitating post-pandemic economic recovery for SMEs and startups. Additionally
, in bilateral talks with Malaysian counterpart Tengku Zafrul Aziz, Goyal urged for an early conclusion of a review of the AITIGA Agreement, as Malaysia holds the ASEAN coordinator role for India. Goyal also explored opportunities to deepen trade and investment ties with Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto.
As India continues its participation in the IPEF negotiations, which currently include 14 member nations such as Australia, Brunei, Fiji, Japan, and the US, among others, the nation aims to make further progress in these strategic collaborations. Launched in May 2022, the IPEF demonstrates India’s commitment to fostering economic cooperation and innovation across the Indo-Pacific region.
In summary, the recent developments, including the signing of the IPEF Supply Chain Resilience Agreement and the US-India Innovation Handshake MoU, signify a significant step forward for Indian startups. These strategic partnerships not only strengthen global supply chains but also pave the way for increased collaboration in critical and emerging technologies, offering a promising outlook for economic growth, investment, and job creation in the coming years.
Re-reported from the article originally published in The CNBC TV English