DPIIT Promoting Manufacturing Incubators

The Department for Promotion of Industry and Internal Trade (DPIIT) is taking significant steps to foster the startup ecosystem and industry by promoting innovation in manufacturing. This is being achieved through collaboration with startups and the development of manufacturing incubators.

Importance of Manufacturing for Economic Growth

Rapid industrialization and manufacturing are crucial drivers of economic growth. Advances in manufacturing and robust supply chains play a key role in establishing a nation as an export-led economy and a preferred global trading partner. Developing a strong manufacturing base is essential for promoting innovation, competitiveness, employment, and self-reliance.

India’s Manufacturing Evolution

India’s manufacturing capabilities have been significantly enhanced through landmark reforms and initiatives. The country has seen substantial diversification in its manufacturing portfolio, becoming a dynamic hub for innovation, technology, and skilled labor. This growth has improved product quality, global standing, and trade relations while creating numerous jobs.

Role of Innovation in Manufacturing

In addition to expanding production, innovation is critical for advancing manufacturing technology and scientific breakthroughs. Indian startups and entrepreneurs are shifting global value chains to India through domestic innovation, further strengthening the country’s position as a hub for innovative technology solutions.

DPIIT’s Initiatives and Support

During the first-ever ‘Startup Mahakumbh’ festival, DPIIT supported dedicated pavilions for incubators and B2B manufacturing startups, emphasizing the importance of manufacturing incubators. The ‘ONDC-Startup Mahotsav’ also saw participation from emerging businesses and unicorns, encouraging vertical and horizontal integration with startups to promote domestic manufacturing.

DPIIT is actively promoting manufacturing incubation through its autonomous institutes. For instance, the National Council for Cement Building Material (NCCBM) has inaugurated the National Council for Cement and Building Materials-Incubation Centre (NCB-IC) to support startups in the cement and building materials industry. Similarly, the Indian Rubber Manufacturers Research Association (IRMRA) is establishing an incubation center for related product segments. DPIIT has reached out to large corporates, industry associations, and unicorns to highlight the benefits of manufacturing incubators and collaboration with startups.

Support for Manufacturing Startups

Manufacturing-focused incubators provide essential support for startups, offering pilot, scaling, and manufacturing facilities that reduce high capital expenditure. These incubators offer shared facilities for innovative product development and early-stage manufacturing, aiding the growth and scaling of the ecosystem. They act as intermediaries between startups and larger companies, providing pilot facilities, test beds, prototyping facilities, design centers, and technology management, market access, and risk capital facilitation.

Corporate Involvement in Incubation

Corporates can significantly benefit from incubating manufacturing startups by leveraging innovative potential, facilitating technology transfer, and co-creating groundbreaking products. This collaboration can reduce R&D costs and time, enhance internal teams, and promote intrapreneurship. Corporates can start small-scale incubation programs and gradually expand to specialized long-term programs, customizing their support based on available resources and goals.

Government Support and Initiatives

Eligible entities can explore benefits from government initiatives like the Startup India initiative, Atal Incubation Centres (AICs), National Initiative for Developing and Harnessing Innovations (NIDHI), Technology Incubation and Development of Entrepreneurs (TIDE), Biotechnology Industry Research Assistance Council (BIRAC), and Innovations for Defence Excellence (iDEX).

Manufacturing is a critical sector for India to achieve self-reliance and global competitiveness. The startup ecosystem can support manufacturing startups by creating more manufacturing incubators, nurturing innovation, and enhancing the nation’s manufacturing capabilities. Collaboration between established corporates and upcoming startups will create a mutually beneficial environment, contributing to the overall development of the nation.

Sources: PIB Delhi, “DPIIT promoting Manufacturing Incubators for Startups,” May 31, 2024.