India Drives Innovation and Growth in SCO Start-up Forum

Indian Prime Minister Narendra Modi highlighted India's substantial contributions to advancing the economic agenda of the Shanghai Cooperation Organisation (SCO) through institutionalized mechanisms such as the SCO Start-up Forum and the Special Working Group on Start-up and Innovation. His remarks were conveyed by Indian External Affairs Minister S. Jaishankar at the SCO meeting. “With 130,000 start-ups in India, including 100 unicorns, our experience can be useful to others,” the Ministry of External Affairs statement cited the prime minister as saying in his remarks.
According to a NASSCOM report, India has become the fastest-growing and third-largest ecosystem for start-ups. This growth is fuelled by significant funding, emerging technologies, and a booming domestic market, propelling the Indian start-up ecosystem to new heights.
India will host the fifth meeting of the Shanghai Cooperation Organisation start-up forum in January 2025.The initiative is aimed to promote start-up interactions among the eight-member SCO which comprises China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, India, Pakistan and Uzbekistan.
India has taken several initiatives to build to empower the local start-up ecosystems in the SCO Member States, provide value to start-ups through mentoring and enabling access to investor and corporate engagement activities and solve social problems through innovative solutions and exchange knowledge on how institutional interventions can be introduced to support the start-up ecosystem.
India has rapidly positioned itself as a driving force for innovation, enabling forward-thinking individuals across various industries and social sectors to implement transformative ideas and projects. Countries like Kazakhstan are well-prepared for such support; recent education reforms and investments have sparked a transformation in the domestic business and internship landscape. Cutting-edge institutions, such as the new High-Tech Academy in Almaty, are inspiring the younger generation to tackle the challenges and opportunities of the modern world. India stands to benefit significantly by increasing its involvement and capitalizing on the region’s growing ambitions. Establishing a digital bridge and providing Digital Public Goods and Infrastructure for Central Asia and other regions is a viable way forward while other issues are being addressed.
Digital Public Infrastructure (DPI) like Aadhaar and the Unified Payments Interface (UPI) has transformed the Indian landscape, providing a robust foundation for start-ups and enabling secure authentication, streamlined transactions, and enhanced financial inclusion. By leveraging these digital platforms, start-ups have developed innovative solutions that utilize digital identity and frictionless payments to drive ecosystem growth. On May 13, 2023 SCO member states unanimously adopted New Delhi’s proposal of "DPI as the right way for deploying digital technology among member states," promoting inclusive growth within the region. India’s UPI is currently used in Nepal, Bhutan, France, Singapore, the UK, UAE, and Mauritius as a secure platform for digital transactions. Implementing DPI within the SCO region can enhance commerce by reducing costs, facilitating prompt movement of goods, and boosting tourism.
The pharmaceuticals and health tech sector has become a key area of innovation in India. In 2021, there were 3,548 active start-ups in this sector that secured funding totalling US$2.2 billion. This figure is projected to reach US$21.3 billion by 2025, highlighting the transformative potential of start-ups in revolutionizing healthcare accessibility and delivery. In 2022, India's pharmaceutical exports to Russia, Uzbekistan, Kazakhstan, Tajikistan, Turkmenistan, and Kyrgyzstan amounted to US$597.8 million, US$128.16 million, US$72.6 million, US$27 million, US$25.4 million, and US$16.15 million, respectively. Indian start-ups have the opportunity to form joint ventures with Central Asian countries to enhance quality control, digitization, and pharmaceutical delivery. Additionally, Central Asian countries are increasingly importing AYUSH products—traditional and homeopathic medicines—from India, with exports valued at US$16 million in 2022.

India has amassed significant expertise in navigating complex markets, which can be leveraged to support start-ups in SCO countries. Innovative solutions tailored to the Indian market can be adapted to meet the needs of these nations. Through partnerships, the Indian start-up ecosystem can offer funding, mentorship, and access to a broader network of investors, aiding start-ups internationally. Furthermore, Indian start-ups can advocate for favourable policy changes and guide other countries in creating supportive ecosystems.
India's Digital Public Infrastructure (DPI) has enhanced the delivery of public goods and services and provided data-driven insights for grievance redressal. This use of DPI can assist some SCO countries, particularly in Central Asia, in expanding social and financial assistance to underprivileged populations. The Indian start-up ecosystem has the potential to foster a global network of innovation and entrepreneurship, creating a mutually beneficial environment for start-ups across borders.