Commerce and Industry Minister Shri Piyush Goyal Highlights India’s Growing Startup Ecosystem at India–Japan Startup Roundtable in Tokyo

The India-Japan Startup Roundtable in Tokyo marks a pivotal moment in bilateral economic diplomacy, reflecting the deepening strategic partnership between Asia's two leading democracies. Union Commerce Minister Piyush Goyal's announcement that India now hosts nearly 250,000 startups — cementing its position as the world's third-largest ecosystem after the US and China — is not merely a statistical milestone but a testament to a decade of deliberate policy architecture. The Startup India initiative launched on January 16, 2016, under Prime Minister Narendra Modi's leadership, provided the foundational framework through tax exemptions under Section 80-IAC of the Income Tax Act, self-certification compliance, and the Fund of Funds for Startups (FFS) managed by SIDBI with an initial corpus of ₹10,000 crore. This institutional support, combined with India's demographic dividend — 65% of the population under 35 — and the world's second-largest internet user base (over 900 million), created fertile ground for innovation. The four-pillar framework proposed by Minister Goyal represents a sophisticated evolution from transactional engagements to structural cooperation. The Japan-India Deep-Tech Capital Corridor addresses a critical gap: patient capital for deep-tech ventures (AI, semiconductors, quantum, biotech) that have long gestation periods but strategic importance. Japan's postal savings, pension funds, and institutional investors hold over $3 trillion in assets, offering a natural pool for such investments. The Two-Way Innovation Bridge leverages Japan's 700+ universities and India's 1,000+ higher education institutions, enabling joint research in areas like fusion energy (Kyoto Fusioneering's participation is telling), robotics, and advanced materials. Manufacturing and Technology Integration capitalises on complementarity — India's frugal engineering and scale (exemplified by the PLI schemes across 14 sectors with ₹1.97 lakh crore outlay) with Japan's kaizen-driven precision manufacturing. Joint Startup Pitching Platforms institutionalise the existing India-Japan Pitching Series, which has already facilitated 30+ tie-ups between 65 Indian startups and 100 Japanese corporations. Constitutionally, this cooperation aligns with Article 246 and the Seventh Schedule — while 'trade and commerce' falls under the Union List (Entry 41), 'industries' is in the Concurrent List (Entry 24), enabling both Centre and states to legislate. The proposed second Fund of Funds (~US$1 billion) for deep-tech requires parliamentary appropriation under Article 110 (Money Bill provisions). Internationally, the partnership reinforces the Quad's technology pillar and the Supply Chain Resilience Initiative (SCRI) launched in 2021 with Australia. JICA's commitment to showcase Indian opportunities to Japanese startups signals a shift from ODA (Official Development Assistance) to innovation-led investment. Future implications are profound: India could become Japan's 'innovation backyard' for testing and scaling solutions for the Global South, while Japanese precision manufacturing could elevate Indian defence and aerospace startups (evidenced by drone and space tech showcases) to global standards. The transition from internet/software to manufacturing-intensive startups — noted by VC investors — aligns with the 'Atmanirbhar Bharat' vision and the National Manufacturing Policy's 25% GDP target. However, challenges remain: IP protection harmonisation, data localisation norms under the Digital Personal Data Protection Act 2023, and visa regimes for talent mobility. The Roundtable's emphasis on institutionalising cooperation through regular investor-startup interactions and university-industry linkages suggests both governments recognise that sustainable innovation ecosystems require more than ministerial summits — they demand persistent, multi-stakeholder architecture.