India to set up $1 bn innovation fund

GREATER NOIDA, INDIA: The Indian government has outlined a plan to set up Rs.5,000 crore (nearly $1 billion) fund to facilitate innovation and entrepreneurship, top official said Thursday.

The government would initially contribute $20 million (Rs.100 crore) to the India Inclusive Innovation Fund. The remaining amount would come from scheduled banks, insurance companies, financial institutions, corporates, high net worth individuals as well as bilateral and multilateral institutions, said Economic Affairs Secretary Arvind Mayaram.

"This fund would help encourage and finance such products to boost scientific innovations that can improve the life of the common man," Mayaram, said while addressing a seminar on innovation on behalf of Finance Minister P. Chidambaram here.

The seminar was organised by the finance ministry in partnership with the Federation of Indian Chambers of Commerce and Industry (FICCI) as part of the 46th annual meeting of the board of governors of the Asian Development Bank.

Mayaram said the National Innovation Council, which is a part of the Planning Commission, has outlined the plan of setting up of the Rs.5,000 crore fund.

The new fund is aimed to drive and catalyse the creation of an ecosystem of enterprise, entrepreneurship, and venture capital, targeted at innovative solutions for the bottom of the pyramid, Mayaram said.

FICCI president Naina Lal Kidwai emphasised on the need for greater collaborations between the government and the private sector to help promote growth and innovation.

"There is a growing conviction that breakthroughs in ideas and technology must be directed to ensuring that people from all social and economic strata, particularly those at the bottom of the pyramid, partake in the growth process," Kidwai said.