Wednesday, September 18, 2013: In order to boost local manufacturing and curb import of electronic merchandise, the Government of India is in the process of preparing plans to fund and develop technology startups, which specialise in electronics. According to the Economic Times, a senior government official informed that educational institutions like Bengaluru based International Institute of Information Technology and Delhi University have been selected to house these incubators.
The fact is import of electronic products is acting as the second-biggest foreign exchange drainer after oil. “Promoting startup incubators is an important part of the policy,” the Economic Times quoted Ajay Kumar, Joint Secretary, Department of Electronics and Information Technology.
“We are processing proposals from International Institute of Information Technology in Bangalore and Delhi University,” Kumar added. He stated that four such incubators would be established in the first phase. The Indian industry envisages growing 200 successful product companies in addition to 50 semiconductor companies in the next decade.
This move will provide entrepreneur with a short runway to success, stated PVG Menon, president, Indian Electronics and Semiconductor Association. Moreover, this move follows government’s previous initiatives like the National Electronics Policy 2012 and the Rs 100 billion (Rs 10,000 crore) Electronic Development Fund that was announced earlier this year.
As per industry observers, the government has made the right move by deciding to set up incubators and offer funding assistance since, initial investment for electronics-focused startups is high.