STARTUP 

India Strengthening Startup Diplomacy and Innovation Across the SCO

Administrator

Introduction

India has rapidly emerged as one of the world’s most vibrant startup ecosystems, home to over 100,000 registered startups and more than 100 unicorns. Beyond its domestic growth, India is now leveraging this ecosystem as a diplomatic tool. Through what is being called “startup diplomacy”, India is exporting its successful Startup India playbook to the Shanghai Cooperation Organisation (SCO) nations, strengthening economic ties and innovation-driven collaboration across Eurasia.

India’s Startup Diplomacy: The Big Picture

The Startup India initiative, launched in 2016, laid the foundation for India’s innovation ecosystem. Over the years, India has nurtured entrepreneurs through policy reforms, tax incentives, easier compliance norms, and strong support for incubation and funding.

India now sees startups as more than businesses they are a form of soft power that can build trust, accelerate development, and integrate regional economies. By sharing knowledge, mentorship, and incubation opportunities, India is positioning itself as a leader in innovation diplomacy within the SCO.

This strategy also aligns with India’s larger goal of becoming a “Vishwa Guru” (global guide), where economic and technological leadership complement political diplomacy.

Key Milestones in Startup Diplomacy

1. Special Working Group on Startups & Innovation (SWG)

  • At the 2022 Samarkand summit, India proposed the creation of a dedicated SCO Special Working Group on Startups and Innovation.

  • This was approved, with India appointed as the permanent chair of this group.

  • The SWG acts as a platform to design joint programs, policy dialogues, and innovation roadmaps for SCO nations.

2. SCO Startup Forums

  • India has hosted multiple editions of the SCO Startup Forum since 2020.

  • These forums bring together entrepreneurs, investors, policymakers, and thought leaders to exchange ideas and showcase innovations.

  • The 2023 New Delhi Forum was a landmark, attracting 600+ delegates and resulting in dozens of cross-border partnerships.

3. Mentorship & Incubation Programs

  • India has provided over 100 hours of structured mentorship to startups across SCO countries.

  • Initiatives include cross-border incubation, joint hackathons, and thematic pitch sessions on areas like fintech, agri-tech, healthtech, and clean energy.

  • Indian institutions like iCreate (Ahmedabad) and T-Hub (Hyderabad) have partnered with SCO nations to host innovation exchanges.

4. Recognition at SCO Summit 2025

  • At the Astana Summit in 2025, India’s leadership was reaffirmed with the permanent chairmanship of the Startup and Innovation SWG.

  • This recognition highlights India’s role not only as a startup hub but also as a regional innovation enabler.

Why Startup Diplomacy Matters

  • Economic Integration: Startup diplomacy fosters trade, investment, and innovation-led growth.

  • Geopolitical Influence: It strengthens India’s strategic role in Eurasia without heavy reliance on military or political tools.

  • Youth Empowerment: By promoting startups, India connects with the youth population of SCO countries, shaping long-term partnerships.

  • Innovation Leadership: Sharing its startup playbook helps India build credibility as a global hub of ideas and entrepreneurship.

Future Outlook

Going forward, India plans to:

  • Launch a digital startup exchange platform for SCO members.

  • Set up joint innovation funds to co-invest in promising ventures.

  • Expand collaboration in AI, green energy, healthtech, and deep-tech sectors.

  • Strengthen women-led and rural entrepreneurship programs across SCO nations.

Conclusion

India’s startup diplomacy signals a new era of innovation-led foreign policy. By turning its domestic success into an exportable model, India is not only strengthening regional cooperation but also building a global reputation as a hub for entrepreneurship, innovation, and collaboration. With its leadership role in the SCO, India is crafting a new narrative where startups become bridges of diplomacy, driving economic integration, youth empowerment, and collective progress across borders.