Indian Startups' Global Challenges: Insights from WTO Expert

One of the biggest problems that the startups face is the barriers to entry in foreign markets. In an exclusive interview with TICE News, Professor Abhijeet Das, Head and Professor at the Centre for WTO Studies, highlighted the challenges faced by Indian startups in the global arena shedding light on the role of foreign investment, and the crucial need for international trade expertise.

Barriers to Entry: A Global Hurdle for Indian Startups

Mr. Das, a leading expert in international trade policy, highlighted the significant challenges that startups across the globe encounter when attempting to enter foreign markets. He emphasized that one of the most formidable barriers these startups face is satisfying the screening process for foreign investment, especially in the current climate where many countries are wary of allowing Chinese investments.

"Startups from any country, including India, will face a substantial challenge when undertaking trans-border operations. They must prove their ability to meet foreign investment criteria," Mr. Das stated. However, he also pointed out that Indian startups enjoy a unique advantage due to the country's reputation as a trusted partner in the global arena.

"Indian startups have the advantage of trust, goodwill, and a favorable international climate. This gives them a strong foundation to leverage when expanding abroad," Mr. Das added.

Foreign Investment: A Catalyst for Startup Success

Mr. Das drew attention to the role of foreign investment in the growth of startups. He used the example of Flipkart, a pioneering Indian e-commerce company, to illustrate how foreign investments have played a pivotal role in the success of many Indian startups.

"Flipkart, often considered an Indian success story, benefited significantly from foreign investments even before Walmart's involvement. Governments should encourage this process as it's in our interest to allow foreign investments in various sectors," Mr. Das emphasized. He suggested that the government could impose conditions on equity holding for startups that receive government support to ensure a majority stake remains Indian-owned for a limited period.

"This conditionality might seem restrictive, but it could be a way to nurture Indian startups into global players while safeguarding our interests," Mr. Das suggested.

The Need for International Trade Expertise

Mr. Das stressed that any Indian startup aspiring to achieve global success must prioritize gaining a profound understanding of international trade and marketing strategies. He asserted that this knowledge is indispensable for navigating the challenges of the international business environment.

"Startups with global ambitions must have expertise in international trade and finance as foundational pillars. This knowledge provides a solid platform for Indian startups to take off and compete on the global stage," Mr. Das explained.

He also highlighted the availability of courses run by reputed institutions across India that offer practical and theoretical knowledge in international trade.

"Many part-time courses cater to those already in the business, allowing them to acquire essential knowledge, which is vital for expansion and global growth," Mr. Das concluded.

Mr. Abhijeet Das's insights shed light on the challenges and opportunities facing Indian startups in the global market. While barriers exist, foreign investment and a strong foundation in international trade knowledge can empower Indian startups to thrive on the global stage.

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