National Deep Tech Start-up Policy Awaits Cabinet Approval

ENA Sectors 2024-06-25 15:52:51 New Delhi, Jun 25 (KNN) India's National Deep Tech Start-up Policy (NDTSP) is set to be submitted for cabinet approval, according to a senior government official. The policy, aimed at boosting early-stage technologies and their commercialisation, has completed its final draft following approval from the Empowered Technology Group (ETG). Established in 2020 under the leadership of the Principal Scientific Advisor to the Indian government, the ETG oversees technology procurement, induction, and research and development initiatives requiring substantial investments. The NDTSP is designed to serve as an umbrella scheme, providing guidelines for ministries to develop sector-specific programs for start-ups working on cutting-edge technologies. While the policy itself does not include a budget or funding plan, it aims to promote start-ups engaged in emerging technologies. The official, speaking on condition of anonymity, indicated that the policy could be announced in the upcoming Union Budget. Key features of the draft policy include defining criteria for identifying deep tech start-ups and outlining potential support mechanisms. It proposes a dedicated deep tech capital guidance fund and recommends differentiated treatment for these start-ups, including potential tariff exemptions on imported equipment and materials. The draft also suggests longer-term, higher-quantum early-stage funding and advocates for grant-based seed funding for inventors. The policy draft proposes fiscal incentives to attract domestic venture capital and angel funds to allocate a portion of their corpus to deep tech start-ups. This initiative comes in response to the current landscape where 98 per cent of the more than 10,000 deep tech start-ups in India are funded by international sources. Beyond financial considerations, the draft policy addresses research and development, intellectual property rights, infrastructure sharing, regulatory frameworks, human resource development, and procurement strategies. It aims to create a comprehensive ecosystem to support and nurture technologically advanced start-ups in the country. The NDTSP is expected to complement existing initiatives such as the Fund of Funds for Start-ups (FFS) Scheme, established in 2016 with a corpus of Rs 10,000 crore. The new policy aims to create a separate window for deep tech companies within this framework, recognising their unique needs and longer gestation periods. As the policy moves towards cabinet approval, it represents a significant step in India's efforts to cultivate a robust ecosystem for technologically advanced start-ups. The government's focus on deep tech start-ups underscores its commitment to fostering innovation and technological advancement in the country's rapidly evolving start-up landscape. (KNN Bureau) 38336 https://knnindia.co.in/news/newsdetails/sectors/national-deep-tech-start-up-policy-awaits-cabinet-approval 2024-06-25 15:52:51 knnindia.co.in National Deep Tech Start-up Policy Awaits Cabinet Approval