The government is pressuring corporations to interact with startups more: Secretary of DPIIT

Government urges corporates to deepen engagement with startups to boost manufacturing, innovation

The government is encouraging corporates to increase their engagement with startups to promote entrepreneurship and strengthen domestic manufacturing, a top official said on Wednesday.

Amardeep Singh Bhatia, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), said that involving startups in product development and integrating them into corporate supply chains could help companies reduce manufacturing costs and improve efficiency.

“We have been pushing corporates to deepen their engagements with startups. Companies can outsource their problems to startups,” Bhatia told reporters while briefing the media about National Startup Day, which will be celebrated on January 16.

He said the initiative is challenging but progress is underway, with the DPIIT signing several memorandums of understanding (MoUs) with companies to encourage collaboration with startups.

Prime Minister Narendra Modi will inaugurate the National Startup Day event.
“The Prime Minister has agreed to be part of the programme,” Bhatia said.

The Startup India Action Plan, launched in January 2016, has played a key role in strengthening India’s startup ecosystem over the past decade. Under the initiative, the government is implementing three flagship schemes:

• Fund of Funds for Startups (FFS)

• Startup India Seed Fund Scheme (SISFS)

• Credit Guarantee Scheme for Startups (CGSS)

These schemes aim to provide funding and support to startups across sectors and at different stages of their business lifecycle.

According to Bhatia, over 2 lakh entities have been recognised as startups by the DPIIT so far. Recognised startups are eligible for various incentives, including income tax benefits under the Startup India initiative.

The government is also focusing on promoting deep-tech startups, which are involved in advanced research and the development of commercial technologies.
“We expect a lot of deep-tech startups to come up,” Bhatia said, adding that DPIIT is actively linking R&D laboratories with the startup ecosystem.

The government is providing funding support for such ventures and expects private investment to follow, he added.