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Indian Government establishes Policy to increase Growth of Deep Technology Startups


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According to Rajesh Kumar Singh, Secretary of the Ministry of Commerce and Industry, the Indian government is in the process of creating a dedicated policy to support the development of deep technology start-ups. This move is a response to the increasing interest in the deep tech start-up ecosystem, which has been fueled by recent initiatives such as a fund of Rs. 1 lakh crore for start-up support and a fresh approach to deep tech innovation in defense. The policy is currently undergoing review by multiple government ministries before its official release.

The proposed deep tech policy emphasizes the importance for start-ups to not only innovate but also commercialize their products and establish intellectual property rights. Singh believes that deep tech and comprehensive research are crucial for creating these rights. Once the policy is launched, a dedicated fund for the deep tech sector is planned, which will enable professional decision-making in business without government intervention.

The Indian start-up ecosystem has a widespread presence, with companies operating in 670 out of over 700 districts across the country. Singh highlighted that more than half of these start-ups are based in tier two and three cities, showcasing their extensive reach. Additionally, approximately 45% of these companies have at least one female director on their board, highlighting the inclusivity within this rapidly growing ecosystem.

The government’s allocation of Rs. 1 lakh crore for research and development in the interim Budget is seen as a significant decision. Singh expressed optimism that the Department for Promotion of Industry and Internal Trade (DPIIT) can act as a bridge between businesses and the start-up community, utilizing this fund to boost R&D spending, provide financial support to start-ups, and assist in the commercialization of prototypes. This initiative is expected to further strengthen India’s innovation ecosystem.

In addition to funding, start-ups also require government orders, and the Government e-Marketplace is offering this opportunity to the sector. Singh also supported the idea of implementing the Defence Ministry’s iDex model across all government departments. The iDex framework, which operates under the Department of Defence Production, procures goods and services from innovative start-ups. So far, it has facilitated approximately Rs. 22,000 crore worth of procurements from such firms.

The government’s ultimate goal is to improve India’s global innovation ranking, which currently stands at 40. Singh stated that the ‘Startup Mahakumbh’ event aims not only to be a significant occasion but also an annual one, capable of further stimulating the growth of the ecosystem. The event intends to bring together innovators from across the country and transform it into a globally recognized platform.

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