Govt Plans Rs 10k-cr Fund to Create Giants

Separate Policy To Help MSMEs
  • The journey of tech behemoths like Google, Apple and Facebook- from startups to global giants has caught the fancy of the Indian government
  • Indian Government is planning a Rs 10,000-crore electronics development fund to support ambitious startups in attaining scale.
  • The government feels that India needs to incubate tech giants from its soil like those emanating from the West as the country has a fast-growing mass of internet users and possesses a rich list of highly-skilled techies.
  • This is a different fund from the Rs 10,000-crore venture fund announced in the Budget for startups in micro, small and medium enterprise (MSMEs).
  • The government will not make the investments directly, but will rather route the money through venture capital funds that are focused on electronics hardware and IT startups.
  • We will take small subscription in them. Thus, we will invest in the capital of the fellows who do the investments the source said.