Two 2’s make a 4. This is exactly what India and Israel are gearing up to do for their respective startup industries. Recently India’s NASSCOM delegation paid a visit to Israel to discuss about the prospects about strengthening the existing alliances between the two countries and seeking new partnerships.
According to an official statement issued by R Chandrashekhar, NASSCOM President, the key area of discussion during the visit was about forming new partnerships in the sector of innovation, Internet of Things (IoT) and security solutions.
Chandrashekhar strongly believes that there is huge potential if Indian companies partner with their Israeli counterparts and establish an association that is mutually beneficial. “We are looking at collaborative opportunities with innovative companies based out of Israel and possible partnerships that can scale up operations for companies on both sides,” he said in a statement.
The Israeli startup industry is known for its strong ecosystem. It has an impressively innovative environment, a unique cultural characteristic and a highly supportive government.
The startup industry in Israel is doing pretty well for itself and is only second to the United States startup industry. Seeing the huge potential that the industry holds, the country has spent 4.2 percent of its GDP on R&D, which is the highest. Further, the country’s technology sector is also doing its bit for the country and is contributing a huge 26 percent to its overall GDP.
Israel is home to a wide variety of early-stage startups and established companies ranging from data centers, internet solutions to IT security etc.
The Israeli government is known to granting nearly 80% of its funds to startups which are in their early-stage phase. “The agency running its incubator – which is also assessed by the government – provides about 15 per cent…It will be interesting to know how this model can be incorporated into the Indian startup ecosystem,” said Chandrashekhar.
Israel currently considers India as a long-term strategic partner that can enable its companies in having a global reputation.
Talking about the association between both the countries, Chandrashekhar said, “Small tech companies make up the startup landscape of Israel, whose primary model is to develop a niche product and eventually get acquired. Typically scaling up is a challenge for these companies, but we in India don’t have that problem. Thus, the potential both countries offer for each other is tremendous.”
India, on the other hand, is also currently scouting for opportunity of a joint R&D project for commercial products in various sectors like healthcare, technology transfer, agriculture, cyber security and engineering solutions.