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FICCI LEAD, the technology and business incubator of the Federation of Indian Chambers of Commerce & Industry (FICCI), and the Dubai International Financial Centre (DIFC) recently inked a landmark MoU to launch the ‘India-UAE Startup Corridor’. The objective of the initiative is to enhance and expand the startup ecosystem between India and the UAE.

It will also further the vision of the leadership of both countries under the recently signed Comprehensive Economic Partnership Agreement (CEPA).

Around 10 technology-led innovative startups from various sectors, including financial services, education and logistics, have been shortlisted for the inauguration of the India-UAE Startup Corridor in Dubai.

This initiative would create an ecosystem to embolden the engagement between startups, investors, incubators, corporations, and entrepreneurs to scale their business and strengthen their position in the global market.

It will target a minimum of 50 validated startups based in India and the UAE over a period of five years with the vision to grow 10 of them into unicorns (startups valued at more than $1 billion) by 2025.

The MoU between FICCI LEAD and DIFC is a follow on to the MoU that was signed between FICCI LEAD, Indian Angel Network (IAN), Turbostart, India and MCA Management Consultants, UAE, on January 26 this year at Expo 2020 Dubai, wherein a venture capital fund of $150 million was announced.

Arif Amiri, CEO of DIFC Authority said: “Since DIFC’s establishment in 2004, we have demonstrated our commitment to building and maintaining sustained, long-lasting partnerships with the Indian market. Indian banks, insurers, law firms and wealth managers have already chosen DIFC as their preferred global financial centre in the region and we are delighted to be working with FICCI LEAD to build a corridor that will attract more Indian start-ups to set up here.”

Ajai Chowdhry, Chairman of FICCI Startup Corridor & FICCI Lead said: “This landmark MOU is the beginning of an important partnership on enhancing opportunities in the innovation and entrepreneurship ecosystems between India and the UAE. FICCI remains committed to progressively scaling this India-UAE Startup Corridor in collaboration with our partner, DIFC, and help convert at least 10 start-ups into unicorns.”

Aman Puri, Consul General of India, Dubai said: “I am certain that this MoU between FICCI LEAD and DIFC will foster deeper collaboration between the start-up ecosystems of India and the UAE and bring in opportunities to further the momentum set by interactions during Expo 2020 Dubai. We are excited for the coming years that will witness the emergence of new soonicorns and unicorns in both countries and contribute to finding innovative solutions to global challenges.”

S. Venkatesh, Managing Partner, MCA, said: “This MOU is a significant step in enabling the Indian startups to have a launchpad in the UAE and widen their market reach to GCC and beyond. He added that MCA is proud to be participating in this great initiative to further economic growth.”

Manoj Nayak, Founder of 6th Sense, said: “The India-UAE Startup Corridor has been initiated at the right time to bring more prosperity to both the countries and to the global economy. Nayak added that 6th Sense is proud to be part of this programme.”

India had launched Startup India, envisioned by Prime Minister Narendra Modi, in January 2016 to give impetus to the indigenous ecosystem and encourage innovation and entrepreneurship. India now boasts of the world’s third-largest ecosystem for start-ups.

Additionally, over the past five years, India has leapfrogged in the World Bank’s Ease of Doing Business ranking to 63rd position among 190 nations, from 142nd position in 2014. In 2020, India also joined the group of Top 50 countries in the Global Innovation Index (GII) of the World Intellectual Property Organisation (WIPO).

The UAE aims to create 20 unicorns by 2031 and is already the leader in the MENA region in terms of tech transformation, digital acceleration and embracing innovative ideas.

Since 2007, FICCI has been an active player in the ecosystem and has supported 1,000+ startups/innovators with more than Rs 125 crore.

The start-up enterprises supported by FICCI have been able to generate 140,000+ jobs and leverage more than five times capital from external market sources. More than 100 companies have been provided access to the global markets across the US, South Asia and Africa.

Moody’s slashed India’s economic growth forecast, stating the rise in crude oil, food and fertiliser prices will weigh on household finances and spending in the months ahead

Moody’s Investors Service slashed India’s economic growth projection to 8.8 per cent for 2022 from 9.1 per cent earlier, citing high inflation.

In its update to Global Macro Outlook 2022-23, Moody’s said high-frequency data suggest that the growth momentum from December quarter 2021 carried through into the first four months this year.

However, the rise in crude oil, food and fertiliser prices will weigh on household finances and spending in the months ahead. Rate hike to prevent energy and food inflation from becoming more generalized will slow the demand recovery’s momentum, it said.

“We have lowered our calendar-year 2022 growth forecast for India to 8.8 per cent from our March forecast of 9.1 per cent, while maintaining our 2023 growth forecasts at 5.4 per cent,” Moody’s said.

Strong credit growth, a large increase in investment intentions announced by the corporate sector, and a high budget allocation to capital spending by the government indicate that the investment cycle is strengthening.

“But unless global crude oil and food prices rise further, the economy seems strong enough to maintain solid growth momentum,” Moody’s added.

For 2022 and 2023, it projected inflation to be around 6.8 per cent and 5.2 per cent, respectively.

A rise in prices across all items from fuel to vegetables and cooking oil pushed WPI or wholesale price-based inflation to a record high of 15.08 per cent in April and retail inflation to a near eight-year high of 7.79 per cent.

High inflation prompted the Reserve Bank to hold an unscheduled meeting to raise the benchmark interest rate by 40 basis points to 4.40 per cent earlier this month.

In November last year, Moody’s had projected a 9.3 per cent economic growth for India in the ongoing fiscal year (April-March).

Earlier this month, S&P Global Ratings had cut India’s growth projection for 2022-23 to 7.3 per cent, from 7.8 per cent earlier, on rising inflation and longer-than-expected Russia-Ukraine conflict.

In March, Fitch had cut India’s growth forecast to 8.5 per cent, from 10.3 per cent, citing sharply high energy prices on account of the Russia-Ukraine war.

The World Bank in April slashed India’s GDP forecast for 2022-23 to 8 per cent from 8.7 per cent predicted earlier, while IMF has cut the projection to 8.2 per cent from 9 per cent.

Asian Development Bank (ADB) has projected India’s growth at 7.5 per cent, while RBI last month cut forecast to 7.2 per cent, from 7.8 per cent, amid volatile crude oil prices and supply chain disruptions due to the ongoing Russia-Ukraine war.

In its report on Thursday, Moody’s said it has lowered its global growth projections and raised inflation forecasts for 2022 and 2023 on account of several negative factors.

The main drivers of the slowing economic momentum are ongoing supply shocks that are stoking inflation and eroding consumer purchasing power, and a shift towards more hawkish monetary policy globally, accompanied by financial market volatility, asset repricing and tighter credit conditions.

Stating that the post-pandemic economic recovery faces a complex set of challenges, it said several cross-currents have hit the global economy all at once, and will slow growth more significantly than it envisaged only a few months ago.

“The economic spillovers of the Russia-Ukraine military conflict are still unfolding, as is the effect on global growth from the slowdown in China amid strict enforcement of its zero-COVID policy. Although we expect headline inflation rates to ease through next year, price levels remain high and will weigh on consumer demand,” Moody’s said.