[Answered] Startup20 aims to harmonize the global ecosystem while retaining national diversity. Evaluate India’s role in fostering international innovation cooperation and its implications for a balanced, inclusive global economic order.

Introduction

Startup20, launched under India’s G20 presidency, has institutionalized a global voice for startups. It marks a shift toward inclusive innovation diplomacy, harmonizing ecosystems while preserving national entrepreneurial diversity.

India’s Strategic Role in Global Startup Diplomacy

1. India, home to the third-largest startup ecosystem globally with over 1.2 lakh startups and 100+ unicorns, leveraged its G20 presidency in 2023 to institutionalize Startup20 — the first dedicated Engagement Group for startups and SMEs in the G20 framework.
2. Prior to this, startup issues were subsumed under the Business 20 (B20), which largely served the interests of multinational corporations. Startup20 brought structural parity by elevating the voice of agile, early-stage ventures alongside large firms in global economic governance.
3. This reflects India’s belief in the ambidextrous model — the synergy between the agility of startups and the scalability of corporates.
4. As seen during COVID-19, nimble firms like Bharat Biotech and Moderna innovated vaccines quickly, while giants like Pfizer scaled their distribution — a model now institutionalized through Startup20.

Global Cooperation, Local Diversity: India’s Balancing Act

1. India ensured that Startup20 promotes harmonization without homogenization. It advocated for: Global startup definitions and governance standards, Access to global capital, talent, and markets, Support for underrepresented groups (women, rural entrepreneurs, minorities), A focus on SDG-aligned innovations like climate tech and digital health.
2. For example, India’s Digital Public Infrastructure (DPI) like Aadhaar, UPI, CoWIN, and ONDC were showcased globally as templates for inclusive innovation — now studied by countries such as Brazil, Indonesia, and Nigeria.

Evolution of Startup20 and Global Innovation Diplomacy

1. Following India’s leadership, Brazil’s G20 presidency (2024) refined the agenda with: Tokenisation of assets for capital access, Blended finance for deep tech, Emphasis on renewable energy, circular economy, and social enterprises.
2. South Africa’s presidency (2025) furthered this with task forces on: Township and rural entrepreneurship, Trade and market access and Inclusion and sustainability.
3. India’s model of combining grassroots entrepreneurship (e.g., PM Mudra Yojana) with high-tech innovation (e.g., Startup India Mission) is now influencing global policy. The rise of Tier-2 and Tier-3 city startups (e.g., Bhubaneswar, Jaipur) echoes the Startup20 Johannesburg Agenda’s emphasis on rural inclusion.

Addressing Gaps and Building Institutions

1. Startup20 identified two systemic global gaps: lack of policy implementation mechanisms and absence of institutional continuity across presidencies.
2. India proposed the formation of an International Secretariat for Startup20 — a startup-style response to a startup policy challenge. This aims to bridge geopolitical divides and ensure continuity for startup ecosystems across Global North and Global South.

Implications for a Balanced Global Economic Order

India’s innovation diplomacy under Startup20 aligns with SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, Infrastructure).

It promotes:

• Multipolar economic architecture through cooperation, not competition,
• Shared prosperity by addressing inequalities in innovation access,
• A template where sovereignty and collaboration co-exist — respecting national uniqueness while driving global progress.

Conclusion

India’s leadership in Startup20 has institutionalized startup diplomacy at the highest global level. It exemplifies innovation multilateralism, enabling inclusive growth through cooperation, diversity, and sustainable entrepreneurship across nations.