Indian startups may soon get easier access to the German market and investments thanks to an agreement the government is planning to sign with the country for a startup exchange programme.

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International Tie-Ups Boosting India’s Startup Ecosystem
Indian startups may soon get easier access to the German market and
investments thanks to an agreement the government is planning to sign
with the country for a startup exchange programme.
#DigitalErra Thought Corner
The programme discusses opportunities for collaboration to share
knowledge and best practices in the startup ecosystem.
“There are synergies between India’s and Germany’s startup
ecosystems since both countries have a similar set of sectors investing
in new ventures,” a senior government official said.
An agreement will be signed between Startup India and the German
Startups Association, which has about 650 startups and 50 partners,
including corporate entities and venture capital firms, and coordinates
with the United States, China, India and Israel.

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International Tie-Ups
India is exploring other such international tie-ups as well to promote
domestic startups and provide them with a global platform.
Last month, there was a summit in Silicon Valley, U.S. attended by
approximately 200 senior-level business leaders and investors including
those from Amazon, PayPal, Deloitte, Facebook, iCreate, Nuveen,
Mastercard, Mobility Infrastructure Group, Varian Medical and Visa Inc.
It explored opportunities to come closer through digitisation.
“At a time of global uncertainty, the only constant element that
businesses and markets across the world will continue to face is
technological disruption,” USIBC chairman and CISCO executive
chairman John Chambers said.
Both India and U.S. look to harness the power of digital transformation
to accelerate economic growth.
PayPal’s Chief Technology Officer Sri Shivananda said India is on an
unprecedented growth path, boosted by Modi-led Digital India, Startup
India and Make in India initiatives.
“There is an interesting wave of experienced, mid-career professionals
who are entering the start-up space in India using advanced technology
components to deliver innovative, low cost solutions,” said Anupam
Jalote, CEO of iCreate.
Also, the latest amended patent rules state startups from across the
world can register patents in India faster and at much lower costs under
a ‘tatkal (instant)’ option being offered now.
Startup India

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Under the Startup India programme, the government had announced a
host of incentives to companies including tax breaks and easier access
to finance. Startups in India are eligible for income tax exemption for
three years in a block of seven years if they are incorporated after April
1, 2016. Besides, the government has created a fund of funds with a
corpus of Rs 10,000 crore to be released till 2025 for investments in
startups.
Managed by Small Industries Development Bank of India, the fund has
so far committed Rs 623 crore to 17 alternate investment funds. DIPP
has sought additional Rs 1,600 crore for the fund from the finance
ministry.
Ease of doing business
A big stance taken by the government is to put in place a policy that
helps foreign capital to flow into the startups. Indian startups have
raised $3.5 billion in funding in the first half of 2015, and the number of
active investors in India increased from 220 in 2014 to 390 in 2015,
according to Economic Survey 2015-16.
One area of rethinking for government would be to allow domestic
pension funds to invest in domestic venture funds. Startups should be
able to close down when their ideas fail to take off. It is pertinent that
the government explains on who the bankruptcy code can be applied
to.
Indian startup landscape is very vibrant with youngsters who are fresh
tech graduates and people who have had a few years in the corporate
world before they decided to venture on their own ideas and startup a
business. In some of the sectors, the number of companies founded in
India is close to the number of companies founded globally.There is a
time lag in the setting up and funding between global and Indian
startups.The ongoing tie-ups and programmes by International

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community could be seen as an indicator of the investment appetite for
Indian start-ups.