The NIDHI is a groundbreaking program launched in 2016 by the Department of Science & Technology (DST). It aims to spur innovation, support startups, and create a thriving entrepreneurial ecosystem in India. With various components providing a wide framework, NIDHI promotes and accelerates innovation-driven enterprises across the nation.
Components of NIDHI Program
The NIDHI Program has significant components that help fuel innovation and startups:
– NIDHI-PRAYAS: This component concentrates on transforming creative ideas into real prototypes. It offers mentorship and financial aid at the Proof-of-Concept level.
– NIDHI Entrepreneurs-In-Residence (EIR) Program: It supports student entrepreneurs through fellowships.
– NIDHI Seed Support Program: This provides early-stage seed funding to startups, enabling them to begin their innovation journey.
– NIDHI Accelerator Program: This aids in increasing the investment readiness of startups.
– Technology Business Incubators (TBIs) and Centres of Excellence (CoE): They provide state-of-the-art infrastructure for incubating startups.
– NIDHI-Inclusive Technology Business Incubators (iTBI) program: It boosts the innovation and startup incubation ecosystem in Tier II and Tier III cities.
NIDHI’s Key Players and Collaborators
NIDHI collaborates with several key entities like the Council of Scientific and Industrial Research (CSIR), Department of Biotechnology (DBT), Ministry of Defence (MoD), and Ministry of Electronics & Information Technology (MeitY). These collaborations are aimed at shaping advanced incubation facilities and creating an environment conducive to technological advancements, innovative solutions, and entrepreneurship.
Status of India’s Innovation and Startup Ecosystem
As of 2023, India ranks 40th out of 132 in the top innovative economies globally as per the Global Innovation Index (GII) and has the 3rd largest ecosystem for startups worldwide. India is home to 108 Unicorns, with 44 born in 2021 and 21 in 2022. However, obstacles such as funding, revenue generation, and supporting infrastructure persist. While India’s Gross Domestic Expenditure on R&D remains (0.65%) lower than the global average (2.2%), its public sector accounts for about three-fourths of total R&D expenditure.
Other Initiatives to Encourage Startups and Innovation
To bolster India’s startup and innovation landscape, several schemes and plans have been initiated. These include the Fund of Funds for Startups (FFS) Scheme, Credit Guarantee Scheme for Startups (CGSS), Startup India Hub, Startup India Seed Fund Scheme (SISFS), Centres of Excellence, and the Startup India Action Plan (SIAP).
Venture Capital: A Critical Aspect of Startup Ecosystem
Venture capital is a key element of new or growing businesses. It comes from venture capital firms that build high-risk financial portfolios. Venture capitalists, as they are known, provide funding to startups in exchange for equity. Referred to as risk capital or patient risk capital, venture capital carries potential risks of business failure. However, it can offer lucrative returns over medium to long-term investment periods.
With these efforts and initiatives, the Indian government aims to create an environment conducive to nurturing innovation, fostering entrepreneurship and establishing India as a global innovation leader.
