Electronics development fund Rs100 bn proposed for funding R&D activities


The fund will promote innovation, IP, R&D, product development, commercialisation of products, etc, in ESDM, nano-electronics and IT sectors

By Richa Chakravarty

Tuesday, March 20, 2012: The draft National Policy on Electronics 2011 aims to create a globally competitive Electronics Systems Design and Manufacturing (ESDM) industry, to meet the country’s needs and also serve the international market. The strategies to achieve these objectives have also been detailed in the draft policy. One of these strategies is to create an Electronics Development Fund (EDF) to promote innovation, intellectual property (IP), R&D, commercialisation of products, etc, in the ESDM, nano-electronics and IT sectors, by providing appropriate funding and incentives to industry, academia and R&D institutions.

It has been proposed that a sum of Rs 100 billion be set aside to fund R&D activities in the field of electronics.


Who can avail the fund

As per the proposal under consideration, the fund can be availed by:

  • Government and private sector companies and institutions
  • Startups and young companies in the early stages of growth
  • Micro, small and medium
  • enterprises (MSME)
  • Large established companies
  • Scientific and research/educational institutions, including private educational institutes

Criteria for availing benefits

As the policy is at its inception stage, the government is yet to finalise the criteria for availing the benefits. The broad objectives of the EDF are to develop an ecosystem of strong R&D and innovation within the country, in order to build a bank of intellectual property rights (IPR) and patents. The fund is also expected to support the design and manufacturing companies in India. The details are yet to be finalised in consultation with all stakeholders. Since EDF covers the entire ambit of electronics, senior official from DIT informs, “This funding support will be required only till the time electronics industry starts flourishing by itself after achieving economies of scale in production, marketing and financing.”

Benefits of this policy

The possible benefits of this fund will lead to the development of the ESDM industry in India, thereby creating vast employment opportunities. It will help create a wealth of IPR in the country in the sectors of electronics, IT and nano-electronics. Apart from this, it will enable the development of technology products that specifically cater to the needs of developing countries (like India), at a cost that is affordable.

T&M devices and solutions to tackle convergence

  • To promote innovation, IP, R&D, product development, commercialisation of products, etc in the ESDM, nano-electronics and IT sectors by providing appropriate funding/incentives to industry, academic and R&D institutions
  • To facilitate IP development by industry, academic and R&D institutions
  • To design and develop Indian microprocessors for diverse, specific and strategic applications
  • To use technology to develop electronic products catering to domestic needs and conditions at affordable price points
  • To develop core competencies in sectors like telecommunications, IT, the automotive industry, avionics, industrial electronics, medical electronics, solar, information and broadcasting, etc, through the use of ESDM
  • To develop a proper framework for technology transfer and collaboration within India as well as globally
  • To harness India’s entrepreneurial energy and intellectual capital in active collaboration with industry associations and academia
  • To set up incubation centres in different cities in the country in association with software technology parks, academic institutions and industry
  • Subsidize acquisition of EDA tools by start ups and other SMEs in this sector.
  • To set up prototype development centres with adequate fabrication facilities
  • To encourage entrepreneurs by making available the required funding, and to assist entrepreneurs to develop and commercialise Indian products
  • To develop the complete value chain—from basic research to IPR generation, product design and development, etc, and achieve economies of scale
  • To support electronics design and manufacturing clusters

Electronics Bazaar, South Asia’s No.1 Electronics B2B magazine



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