Cross-border innovation: US-India collaboration in startups
Bilateral US-India trade reached $146B in 2019 and continues to compound. The US-India startup collaboration sits on top of that foundation — and is rewriting how the most consequential companies of the next decade will be built.
US-India economic relations: a growing partnership
The economic ties between the US and India have strengthened significantly over the past few decades.
Bilateral trade between the US and India totaled an estimated $146.1 billion in 2019 and continues to compound:
| 2019 ($B) | 2022 ($B) | |
|---|---|---|
| US imports from India | 57.7 | 118.8 |
| US exports to India | 34.4 | 73.0 |
| Total | 92.1 | 191.8 |
Foreign direct investment. The US is one of the top investors in India, with cumulative FDI inflows from the US growing over 20× from 2000 to $49.56 billion in 2023.
| 2000 | 2010 | 2020 | 2023 | |
|---|---|---|---|---|
| US FDI to India ($B) | 2.38 | 17.5 | 140.4 | 49.56 |
The services trade has been a particular area of growth, with India a major exporter of IT and IT-enabled services to the US.
Historical collaborations
The US and India have a rich history of collaboration: NASA-ISRO joint missions including Chandrayaan-1's discovery of water on the moon (2008); the Green Revolution of the 1960s, supported by US expertise and technology transfer; decades of academic exchange via the Fulbright Program; and increased defense cooperation in recent years.
The rise of US-India startup collaboration
Built on this foundation, the collaboration between US and Indian startups has grown exponentially, driven by complementary strengths (US technology and global market access; Indian talent and rapidly growing domestic market), shared language (English proficiency in both), and the ~4.9 million Indian diaspora in the US acting as a bridge for connections and knowledge transfer.
Synergies in key sectors
Technology
The tech sector has been at the forefront. AI and machine learning: US companies leverage India's data science talent while Indian startups gain access to cutting-edge AI. Cloud computing collaborations are accelerating digital transformation in both markets.
Fintech
Fintech has emerged as a major area of collaboration. Indian innovations like UPI are inspiring US fintech companies, while US expertise in cybersecurity is bolstering Indian payment systems. Cross-border partnerships are exploring blockchain applications in remittances and supply chain finance.
Healthcare
Telemedicine collaborations are making healthcare more accessible in both urban and rural areas. Partnerships in wearable technology and AI-driven diagnostics are advancing personalized medicine.
Impact and outlook
The growing collaboration is yielding measurable benefits: innovation acceleration, market expansion for startups gaining easier access to new geographies, and attractive investment prospects for venture capitalists and angel investors in both ecosystems.
Callapina operates at exactly this intersection of two of the leading global economies, backing young companies that leverage the advantages of both countries to create value.
— Vinod Jose, Founding GP
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