Over the years, India has given the world remarkable innovation and leadership - from groundbreaking technologies to Indian origin CEOs in several global tech giants, such as Google and Microsoft. The country is no longer just innovating for domestic consumption; it is also innovating and building solutions for the world.
During the COVID-19 pandemic, the Serum Institute of India emerged as the world's largest vaccine producer, demonstrating rapid scaling to meet global challenges. Another example is indigenization of defence and an impressive rise of 31 times in the last decade in defence exports. Today, Indian refineries are exporting refined oil to the world. Indian startups have grown from just 400 a decade ago to 1.3 lakhs today, and nearly 50% of these are emerging in Tier 2 and Tier 3 cities. While Zomato, Swiggy and Blinkit have captured the market in Tier 1 cities, Tier 2 and Tier 3 cities are coming up with their own startups. Today, Gurgaon has drone manufacturing firms, UP is a leather exports hub and solar firms are rapidly coming up across the country.
The government is investing heavily in the Startup ecosystem, Research and Development (R&D) with a focus on artificial intelligence (AI), machine learning (ML), big data, energy transition, electric vehicles (EVs), quantum computing, genomics, 3D printing, robotics, drones, space and sea exploration. Initiatives like the National Quantum Mission, India AI Mission, and the Semiconductor Mission are steps in the right direction, which indicate that the government knows where the future is headed. With the guidance of the government, innovations are rising rapidly. In 2024 alone, Indian startups raised over $12 billion by 2024, and about 75 per cent of this came from international sources. India produces approximately 24,000 PhD graduates annually and many of these are putting out groundbreaking research that is connected to industry needs.
Many firms in Bangalore, Mumbai and Noida are already incorporating AI into their functioning. These firms include consulting firms, those working towards financial firms, and those making defence equipment. The fastest-growing economy in the world, which exports services worldwide, India is also on its way to becoming the world's leading startup ecosystem. Vocational training programmes, graduate upskilling programmes, internships for the youth and investment in quantum computing, AI, solar energy and semiconductors are all steps that will take India forward and propel it towards its goal.
At such a crucial juncture, when India is signing major trade deals with countries across the globe, including EU and Japan, significant collaboration between India and the USA has immense potential. India's rapidly growing innovation ecosystem, fueled by a young, tech-savvy population and an increasingly robust startup culture, combined with the immense scale and market reach of the US, could be a game-changer for the global economy.
The bonhomie between Indian Prime Minister Narendra Modi and U.S. President Donald Trump was one of the defining features of their bilateral relationship during Trump's previous tenure. Their camaraderie was evident in public appearances, from the famous "Howdy Modi" rally in Houston in 2019, where over 50,000 people gathered to witness the two leaders share a stage, to the "Namaste Trump" event in Ahmedabad, India, in 2020. The personal rapport between Modi and Trump translated into a strong diplomatic bond, with both leaders emphasizing shared values and mutual respect.
The bonhomie between the leaders had been instrumental in fostering deeper cooperation between the two nations, especially in defence, trade, and strategic partnerships. Modi's warm approach toward Trump helped elevate India-U.S. ties to new heights, creating a foundation for further collaboration in areas like counterterrorism, regional security, and technology.
Both countries have significantly strengthened their trade and defence relations in recent years, and this partnership holds immense potential for both India and the USA. For India, deeper economic ties with the US can lead to increased access to technology, investments, and markets, while providing American firms with a large, growing consumer base. On the defence front, joint military exercises, shared intelligence, and advanced defence technologies enhance India's strategic capabilities, while the US benefits from having a reliable partner in the Indo-Pacific region.
India's prowess in fields like software development, AI, and renewable energy offers solutions to many of the world's pressing challenges. When paired with the capital, research infrastructure, and global market access of the US, this collaboration can lead to breakthrough technologies that transform industries from healthcare to green energy. Indian innovators, in partnership with global ecosystems that the US is best suited to provide them, will continue to create solutions that will impact and transform the entire world.
Sandesh Sharda is an investor from Washington DC, often known as the “VC from DC