Does size matter? Yes, it does matter in the global startup ecosystem, especially when India is pushing hard to bring startups onto the global stage. As the G20 summit for 2023 is working to bring all the G20 nation startups under one policy, G20 nations are expected to agree on a common definition for startups by July, according to representatives of the Indian government. This agreement would make it easier for members to establish guidelines that operate and could possibly address present problems with startup valuation and taxation.

In the world of startups, different ventures are also categorized according to their size. This bifurcation helps the government authorities to create suitable taxation and valuation policies for the different startups.

Why is Startup20 working to standardize the definition of startups? 

The G20 summit for 2023 is working to bring all the G20 nation startups under one policy. G20 nations are expected to agree on a common definition for startups by July, according to representatives of the Indian government. This agreement would make it easier for members to establish guidelines that operate and could possibly address present problems with startup valuation and taxation.

“There needs to be a clear understanding of how a jurisdiction views startups. The Startup Group is working on whether there can be complete harmony across all issues or whether flexibilities can be explored," said Chintan Vaishnav, Startup20 India chair.

Given the recent creation of Startup20, an official participation group formed during India's G20 leadership, this development is particularly noteworthy.

What is Startup20? 

The G20 India Presidency 2023 established Startup20 as an official engagement group. It intends to represent the global startup ecosystem and engage with stakeholders to raise macroeconomic concerns and challenges faced by entrepreneurs to G20 leaders. The group, supported initially by G20 India Sherpa along with the Startup20 secretariat, will bring forward key topics for discussion and formulate recommendations for each priority area. Startup20 will use a consensus-based approach to corroborate final recommendations to the G20 Presidency for discussion at the G20 Summit.

Startup20 India will structure task forces to develop key priorities and bring forward topics for recommendations to support the global startup ecosystem. The group will convey these recommendations through a communique to the G20 India Presidency, which will be taken up during the G20 Summit 2023.

The task force is bifurcated into three parts. Foundation & Alliances is the first division of the task force while. While Finance, Inclusion & Stability make the other two divisions of the task force.

With India emerging as a breeding ground for startups, and the government keen on promoting the startup phenomena, the G20 presidency is an excellent platform for India to give startups from around the globe a platform to connect under one roof.  

The Department for Promotion of Industry and Internal Trade (DPIIT) has recognized 95,000 start-ups in the country. Although India ranks as the third largest start-up ecosystem in the world, after the United States and China, there is no comprehensive record of the total number of start-ups in India beyond those recognized by the government. India aims to address this critical policy matter and hence the bid to reach a consensus among the G20 nations on the definition of startups.

Benefits Of Startup20 For India

• Startups need assistance, alliances, and partnerships in order to thrive and expand in their current markets or enter new ones. To support potential start-ups, start-up ecosystems must be developed in emerging markets, and worldwide access to these ecosystems must be improved.
• Collaborating with large corporations across nations to develop start-ups provides the next dimension of growth for start-ups and also expedites some of the key global issues.
• Reaching a common parameter will open gates for capital and investments from venture capitalists and angel investors from the G20 nations.
• The standardization will help the startups to innovate with technological and financial support from G20 nations under one roof.
• Better dialogue and smooth communication among the G20 nations in drafting policies to help the global startup ecosystem thrive further.

What's next for Startup20? 

An official engagement group under G20 is set to finalize a common definition for start-ups in the next three months, with an aim to harmonize the global start-up ecosystem.

Where were the previous meetings of Startup20 held? 

Startup20’s  inception meeting was held in Hyderabad on 28 and 29 January 2023. The two-day event witnessed enthusiastic participation from delegations across G20 nations, invitee nations and various national and international organizations, and startup ecosystem players. The meeting received inputs on the issue note and agenda of Startup20 and the taskforces, which were incorporated in a democratic manner. Startup20X was also launched during the inception meeting. 

On March 19, delegates from over 26 countries concluded the two-daylong Startup20 Sikkim Sabha at the conference hall of Chintan Bhawan, which also marked the culmination of the G20 events in the capital. The Business20 (B20) meeting on March 16 initiated the events, which were organized as part of India's G20 presidency.

What is G20? Why is G20 Important For India?

The Group of Twenty, or G20, represents the premier forum for international cooperation on the most important aspects of the international economic and financial agenda. The world's major advanced and emerging economies come together in this organization. The G20 Countries, including Argentina, Australia, Brazil, Canada, China, EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, and USA, collectively represent around 90% of global GDP, 80% of global trade, and two-thirds of the world's population. The G20 aims to achieve global economic stability, and sustainable growth, and promote financial regulations that reduce risks and prevent future financial crises among its members through policy coordination. Additionally, it strives to create a new international financial architecture.