Indian government close to finalizing deep tech start-up policy
What's the story
The Indian government is establishing a dedicated policy to foster the growth of deep technology start-ups, as per Rajesh Kumar Singh, Secretary of the Ministry of Commerce and Industry.
This move comes in response to the growing interest in the deep tech start-up ecosystem, fueled by recent initiatives such as a Rs. 1 lakh crore fund for start-up support and a fresh approach toward deep tech innovation in defense.
The policy is currently under inter-ministerial review before its official release.
Target
DeepTech policy aims to strengthen intellectual property rights
The proposed deep tech policy underscores the importance for start-ups to not only innovate, but also commercialize and establish intellectual property rights.
According to Singh, deep tech and comprehensive research are crucial for creating these rights.
Following the policy's launch, a dedicated fund for this sector is planned, designed to enable professional decision-making in business without government intervention.
Optimism
Indian start-up ecosystem exhibits wide-ranging, inclusive growth
The Indian start-up ecosystem is demonstrating a broad presence with firms operating in 670 out of over 700 districts nationwide.
Singh pointed out that more than half of these start-ups are based in tier two and three cities, showcasing their extensive reach.
Additionally, about 45% of these companies have at least one female director on their board, highlighting the inclusivity within this rapidly growing ecosystem.
Steps
Centre's pledge to enhance R&D and innovation
The government's allocation of Rs1 lakh crore for research and development in the interim Budget is viewed as a landmark decision.
Singh expressed optimism that the Department for Promotion of Industry and Internal Trade (DPIIT) can act as an intermediary between businesses and the start-up community, utilizing this fund to boost R&D spending, finance start-ups, and aid in commercializing prototypes.
This initiative is anticipated to further strengthen India's innovation ecosystem.
Facts
Government e-Marketplace expanding start-up opportunities
In addition to funding, start-ups need government orders, and the Government e-Marketplace is offering this opportunity to the sector.
Singh also endorsed the idea of adopting the Defence Ministry's iDex model across all government departments.
The iDex framework, under the Department of Defence Production, procures goods and services from innovative start-ups.
To date, it has facilitated about Rs. 22,000 crore worth of procurements from such firms.
Goal
Striving to elevate India's global innovation ranking
The government's ultimate objective is to improve India's global innovation ranking, which currently stands at 40.
Singh stated that the purpose of the 'Startup Mahakumbh' event is not only to be a significant occasion but also an annual one, which can further stimulate the growth of the ecosystem.
The event aims to bring together innovators from across the country and transform it into a globally recognized platform.