DPIIT & Firms: Boost for Startup Innovation

New Delhi, Nov 9 (PTI) The Department for Promotion of Industry and Internal Trade (DPIIT) has so far inked pacts with over 50 firms, including ITC, Flipkart, and Mercedes-Benz, to promote a manufacturing and innovation ecosystem for startups, an official said.

The department has proactively reached out to a number of large corporates, industry associations, veterans, and unicorns to emphasise the importance of setting up manufacturing incubators and the benefits of active collaboration with manufacturing startups.

"So far, the department has inked memorandum of understandings (MoUs) with over 50 firms for this," the official said.

This is part of the exercise to encourage the startup ecosystem and the industry at large to foster innovation in manufacturing by supporting and collaborating with startups and developing manufacturing incubators.

Firms, which have entered into these MoUs with the DPIIT, include boAT, HDFC Capital Advisors, Hero Moto, Zepto, Kotak Mahindra Bank, Yes Bank, Paytm, Walmart, and Ather Energy.

The exercise is important as manufacturing startups require support from several ecosystem stakeholders to grow and scale.

Manufacturing-focused incubators are one of the most important drivers of support for startups as they provide essential pilot, scaling, and manufacturing facilities that can provide plug-and-play options to product startups, reducing the burden of high-capex investments.

These incubators provide access to shared facilities for startups to support innovative product development and early-stage manufacturing, paving the way for growth and scaling up of the ecosystem.

They also act as an interface between the startups and the medium and large-scale companies, providing access to pilot facilities for manufacturing, test beds, prototyping facilities, design centres and facilitation for technology management, market access and risk capital.

Such incubators can be set up by a variety of entities, such as corporates, academic institutes, and research institutes, the official said.