DPIIT Collaborates with Corporates, Unicorns to Foster Manufacturing Startups in India

The Department for Promotion of Industry and Internal Trade (DPIIT) has taken a significant step to boost India's manufacturing sector by reaching out to major corporations and unicorns. The initiative aims to establish incubators for manufacturing startups, providing them with government funding and support.

Prominent companies such as Apple, Tata Group, Hyundai, Skoda, and Maruti, along with unicorns like boAT, Moglix, Meesho, and EaseMyTrip, have been approached by DPIIT. The department has shared a comprehensive memo with these companies, outlining a blueprint for the creation of incubators.

This initiative has the potential to transform India's manufacturing landscape, driving innovation and growth in the sector. The success of this initiative could play a vital role in achieving the government's goal of increasing the manufacturing sector's share in the economy.

The memo emphasizes the potential benefits for corporations, highlighting that technology transfer from incubated startups can provide a competitive edge and attract new customers. 'Through technology transfer from incubated startups, corporates can gain competitive advantage in markets and gain new customers,' the memo states.

The document also outlines several funding avenues for corporate incubators, including government support programs, collaborations with academic institutions, and the use of corporate social responsibility funds. This comprehensive approach aims to ensure that these incubators are well-supported and sustainable.

This initiative comes at a time when the Indian government is striving to increase the manufacturing sector's share of the economy, which has remained stagnant at around 15%. To address this, the government has introduced production-linked incentive schemes for 14 sectors, with a significant outlay of Rs 1.97 lakh crore.

A person close to the developments remarked, 'It is a voluntary thing. The government has just made a request to the companies as it believes there are not many manufacturing incubators in the country at present... Almost all big companies and unicorns have been approached.'

The Indian manufacturing sector has shown promising signs of growth. According to the latest HSBC PMI data, the sector started the first fiscal quarter on a strong note, with operating conditions improving at the second-fastest pace in the last three-and-a-half years, driven by buoyant demand and a sharp increase in new business intakes.

The DPIIT memo also highlights the strategies and impact of six major corporations that engage with startups, including Amazon, Nike, Samsung, BMW, Astrazeneca, and Spotify. These examples highlight the potential benefits of corporate involvement in startup incubation.

The government has recognized the importance of incubators as key pillars of the startup ecosystem and has launched several initiatives to support the incubation environment in India. Various line ministries and departments, including DPIIT, NITI Aayog, and the Ministry of Micro, Small and Medium Enterprises, are actively running programs to support incubators.

This collaborative effort between the government and major corporations aims to transform India's manufacturing landscape, driving innovation and growth in the sector. The success of this initiative could play a vital role in achieving the government's goal of increasing the manufacturing sector's share in the economy.

Key Takeaways

• DPIIT reaches out to major corporations and unicorns to establish incubators for manufacturing startups.
• Incubators to provide government funding and support to drive innovation and growth in the sector.
• Corporations can gain competitive edge and attract new customers through technology transfer from incubated startups.
• Government aims to increase manufacturing sector's share in the economy, currently stagnant at 15%.
• Initiative part of government's efforts to transform India's manufacturing landscape and drive economic growth.