Tuessday, July 23, 2013: The Indian Government will soon be unveiling guidelines that support the electronic start-ups in the country. It may choose to even fund 15-25 per cent of these investments through fund managers that include large IT companies and banks.
A senior official from the department of Electronics and Information Technology said that this is the first time that the country is coming up with a system that helps the private R&D sector. This is necessary, considering India’s position as one of the slowest growing GDPs in terms of R&D. Once the final guidelines come out, the return on investment will also be chalked out, reported Business Line.
The guidelines are currently being prepared by a high level committee under the chairmanship of the Principal Advisor to the Indian Government, P Chidambaram.
The new guidelines will be a part of the National Electronic Mission that comes under the National Electronics Policy 2012. The investments in the private firms will be routed through the Electronic Development Fund, which has targeted a $2 billion investment by the year 2020. The official further added that the Government expects a further mobilization amounting to Rs 30,000 crore, which is to be raised by 2020.
Right now, the domestic electronics industry seems nascent and this should be a good start towards growth.
There are many domestic start-ups which are shutting down due to lack of funds and this scheme is meant to revive them. With the proposals in place, the government hopes that there will be a turnover of $400 billion by the year 2020. Over 200 electronics manufacturing clusters are to be set up all across the country.
