Startup20, an engagement vertical under the Indian presidency of G20, has led to significant developments in the global start-up ecosystem. One of the key initiatives of this group is to establish a common definition for start-ups among G20 countries, with the aim of harmonising policies and fostering collaboration.
A senior government official stated that discussions on the common start-up definition have already taken place twice and it is expected to be finalised by the third meeting. The goal is to have a single communique that is agreed upon by all participating countries, including 19 member nations and five invitee nations, which were represented by an international delegation of over 100 participants in the first meeting held in Hyderabad.
The second meeting which took place in Sikkim reportedly saw the participation of 14 countries and two invitee nations, along with delegates from multilateral agencies like the United Nations Development Programme and World Economic Forum.
The establishment of a common start-up definition aims to have a positive impact on policymaking. Currently, India has 95,000 government-recognised start-ups, which are defined as companies with an annual turnover of no more than Rs 100 crores since their incorporation and a maximum operational period of 10 years.
However, beyond these government-recognised start-ups, there is no comprehensive record of the total number of start-ups in India, which is a crucial policy matter that the country aims to address. Hence, the official statement on Startup20 highlights the importance of developing start-up ecosystems in nascent markets and improving access to such ecosystems at a global level to foster prospective start-ups.