The Union Cabinet, led by Hon’ble Prime Minister Shri Narendra Modi, has given the green light to a Memorandum of Understanding (MoU) between the United States of America and the Republic of India. This agreement aims to bolster innovation ecosystems through a collaborative approach termed as an "innovation handshake."

India and the US are teaming up to fortify the startup landscape in advanced technology sectors and foster collaboration in what's termed as iCET (Innovation, Cooperation, Emerging Technologies).

During the 5th India-U.S. Commercial Dialogue held on March 10, 2023, while U.S. Secretary of Commerce Gina Raimondo visited between March 8-10, discussions emphasized reviving the Commercial Dialogue with a strategic focus on areas like supply chain resilience, climate action, advancing an inclusive digital economy, and aiding the recovery of small and medium-sized enterprises (SMEs) and startups post the pandemic. A new Working Group on Talent, Innovation, and Inclusive Growth (TIIG) was launched under this Dialogue. This group will support startups aiming for iCET objectives, identifying regulatory barriers, and fostering stronger connections between the innovation ecosystems of both countries, especially focusing on startups through collaborative initiatives.

A Joint Statement released by President Biden and Prime Minister Modi in June 2023 hailed the efforts to establish an "Innovation Handshake." This initiative aims to link the vibrant startup ecosystems of both nations, resolve specific regulatory challenges, and stimulate innovation and job creation, particularly in crucial and emerging technologies (CET). To formalize this collaboration, a Government-to-Government (G2G) MoU on Innovation Handshake was signed in San Francisco, USA, on November 14, 2023, outlining plans for joint events, round tables, hackathons, open innovation programs, and information sharing between the two countries.

This MoU lays the foundation for upcoming Innovation Handshake events scheduled in both India and the United States in early 2024. These events will feature an investment forum aimed at assisting startups from both countries in bringing their innovative ideas and products to the market. Additionally, a "hackathon" in Silicon Valley will provide a platform for startups from the US and India to pitch their ideas and technologies to address global economic challenges.

The MoU is expected to significantly boost commercial prospects, especially in the high-tech sector, by fostering closer collaboration and innovation exchange between India and the United States.

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