Ministry of Electronics and Information Technology Supporting 3600+ Tech Startups

Nitin Konde, Apoorva Bajj

Aug 6, 2024 — 3 min read

Ministry of Electronics and Information Technology Supporting 3600+ Tech Startups

The government of India is continually engaging in several initiatives under the Startup India program to foster the expansion and improvement of the startup ecosystem within the nation. Startups can get help at different points in their business cycles from the flagship schemes, which include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). This helps them get to the point where they can ask for money from commercial banks, angel investors, or venture capitalists. Consequently, as of July 31, 2024, there are over 1.43 lakh startups in India that have been recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).

Initiatives by the Government

The Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme was launched in 2019 by the Ministry of Electronics and Information Technology ('MeitY') with a budget of INR 264.62 crore, spread out over 5 years. It provides institutions of higher education and leading research and development organizations with financial and technical support so that they can assist ICT companies that are utilizing new technologies. So far, 51 TIDE 2.0 Incubation Centres have received funding and are up and running.

Aiming to assist current and future accelerators in their selection and acceleration of promising IT-based startups to scale to address India's technological challenges and make a positive social impact, the Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH) Scheme was established. Selected accelerators will get one-to-one matching funds up to INR 40 lakh from the SAMRIDH initiative, which they can use to offer accelerator services to start-ups. Out of a total of 22 national accelerators, 175 entrepreneurs will receive help in 12 cities across 14 states in the initial cohort. Among these accelerators, you can find investment firms, corporate accelerators, academic institutions, and government-supported organizations.

A large chunk of the 2019 National Policy on Software Products (NPSP) and the software product ecosystem can now be supported through the Next Generation Incubation Scheme (NGIS). Agartala, Bhilai, Bhopal, Bhubaneswar, Dehradun, Guwahati, Jaipur, Lucknow & Prayagraj, Mohali/Chandigarh, Patna, and Vijayawada are the twelve cities that are planned to begin the scheme. With a total budget of INR 95.03 crore, the scheme intends to support 300 tech startups in Tier-2/3 cities over three years through its solution-oriented architecture.

To promote national self-sufficiency and develop capacities to capitalize on new and developing technological sectors, MeitY has planned and implemented 42 Centres Of Excellence (CoEs) in various areas of national significance. Through democratizing creativity and realizing prototypes, these domain-specific CoEs facilitate India's rise to the position of innovation hub in emerging technologies.

To facilitate the development of innovation-led electronic systems and designs, the Government of Bihar, IIIT Patna, STPI New Delhi, and Makers Village in Cochin, Kerala, as well as the Fabless chip design incubation unit at IIT Hyderabad, have all collaborated to construct Entrepreneur Parks.

Over the past five years, the government has provided financial support to over 10,000 tech startups through various programs and schemes run by relevant ministries and departments. Incubators have distributed a total of about INR 580 crore to these businesses, with 3,600 tech startups receiving INR 212 crore from the Ministry of Electronics and Information Technology (MeitY).