From Local to Global: What Horizon Europe Means for Indian Innovation

Did you know there are about 60 million MSMEs in India? But only a handful really get involved in international research or innovation partnerships? Surprising, right? Especially now, as Indian MSMEs begin to find customers, partners and even competitors in the global market, particularly in the European Union. 

So, what’s holding them back? The main problem is access. Finding the right networks, funding and innovation centres isn’t easy for everyone. 

Take Aman, for example. An entrepreneur running a small clean-tech manufacturing business in Bangalore that supplies parts to Indian buyers. Recently, European companies have shown interest in his sustainable supply chain. For businesses like his, this represents a major opportunity. 

But there’s a catch. Breaking into the EU market isn’t just about ambition or getting opportunities like he has. European innovation standards are strict and most Indian MSMEs face the problem of how to actually innovate and collaborate internationally, without risking everything they’ve built?

This is where programs like Horizon Europe come in. It is the EU’s flagship funding scheme for research and innovation. Horizon Europe is designed to support cross-border collaborative innovation and research. It also encourages international collaboration. 

In this programme, Indian MSMEs can participate by teaming up with European companies, universities, and research centres. Plus, they get support from Indian organizations like DST (Department of Science & Technology) and DBT (Department of Biotechnology) through special co-funded calls. So MSMEs like Aman don’t have to do it alone.

Another question that you might have is, why does Horizon Europe matter so much for Indian MSMEs? Well, it’s particularly significant if you’re working in clean or green tech, energy-efficient manufacturing, renewables or advanced digital tools like automation and AI. There’s also healthcare and life sciences collaborations, which could seriously move innovation.

Imagine a small Indian cleantech startup collaborating with a European research institute to develop low-carbon solutions or a Bangalore based MSME testing out digital manufacturing tools with EU partners. That’s exactly the kind of collaborations Horizon Europe makes possible.With this program, Indian MSMEs can access funding for joint research and innovation projects, which takes a lot of the financial risk off their shoulders. They build credibility with global buyers and investors, and they get access to European research infrastructure that would otherwise be difficult for smaller firms to access.

Through DST/DBT co-funded projects, Indian companies can get domestic funding support for Horizon Europe projects, usually up to ₹2–3 crore, depending on the opportunity. This reduces the cost burden to invest in new ideas.

As the world evolves and India-EU economic ties strengthen, especially around tech, sustainability and innovation. For MSMEs that want to look beyond India, these collaboration frameworks are more valuable than ever.

Indian companies have already partnered with EU entities under programs like Horizon 2020. These partnerships led to better products, new processes and long-lasting technology collaborations, helping small businesses grow beyond the local market.

A key elements in all these success stories is that innovation, risk and growth are all showcased better when they’re shared. That’s what works best for MSMEs.For Indian MSMEs, going global isn’t just about selling more. It’s about working smart.

Programs like Horizon Europe offer a pathway and help businesses make the most of available opportunities. And organizations like EICBI assist Indian MSMEs in understanding international innovation ecosystems, policy frameworks and real collaboration opportunities that turn big ideas into action.

This article is written by

Honey Vasani, EICBI Business and Trade Research Intern