DPIIT Rallies Corporates, Unicorns To Establish Incubators For Manufacturing Startups

New Delhi, May 31 (KNN) The Department for Promotion of Industry and Internal Trade (DPIIT) has reached out to leading corporations like Apple, Tata Group, Hyundai, Skoda, Maruti Suzuki, as well as prominent startups such as boAT, Moglix, Meesho, and EaseMyTrip, encouraging them to establish incubators aimed at nurturing manufacturing startups nationwide.

In a memorandum circulated to these entities, the DPIIT has outlined a blueprint detailing strategies for creating such incubators, while indicating that government funding support may be available.

The document cites examples of major global firms like Amazon, Nike, Samsung, BMW, AstraZeneca, and Spotify that actively engage with startups, highlighting the potential competitive advantages and cost-saving benefits of such collaborations through technology transfer and innovation.

While voluntary in nature, the initiative aligns with the government's broader efforts to bolster the manufacturing sector's contribution to India's economy, which has remained stagnant at around 15 per cent for an extended period.

In this vein, the administration has introduced Production Linked Incentive (PLI) schemes across 14 sectors, including electronics, textiles, food products, solar PV modules, and pharmaceuticals, with a total outlay of Rs 1.97 lakh crore.

The memorandum underscores the government's recognition of incubators as crucial pillars of the startup ecosystem, noting the various initiatives launched by ministries and departments to support incubators nationwide.

It outlines potential funding avenues for corporate incubators, such as government programs, collaborations with academic institutions through co-investment models, or the deployment of corporate social responsibility funds.

This push comes amid promising indicators for India's manufacturing sector, with the latest HSBC Purchasing Managers' Index (PMI) data revealing robust demand, a sharp uptick in new business orders, and increased production levels in the first quarter of the current fiscal year.

(KNN Bureau)