08 Aug 2023 National Initiative for Developing and Harnessing Innovations (NIDHI)
This article covers “Daily Current Affairs” and the topic details “National Initiative for Developing and Harnessing Innovations (NIDHI)”. The topic “National Initiative for Developing and Harnessing Innovations (NIDHI)” has relevance in the Economy section of the UPSC CSE exam.
For Prelims:
About NIDHI?
For Mains:
GS 3: Economy
Components of NIDHI?
About India’s Innovation and Startup Ecosystem?
Why in the news:
According to Union Minister Dr. Jitendra Singh, the NIDHI (National Initiative for Developing and Harnessing Innovations) program, managed by the Department of Science and Technology (DST), encompasses multiple facets aimed at bolstering innovations, startups, and the overall startup incubation ecosystem within the nation.
National Initiative for Developing and Harnessing Innovations (NIDHI)
The National Initiative for Developing and Harnessing Innovations (NIDHI) is a pioneering initiative aimed at fostering innovation, supporting startups, and nurturing a thriving entrepreneurial ecosystem within India. Comprising a comprehensive framework, NIDHI serves as a catalyst for promoting and expediting innovation-driven enterprises across the nation.
Components of NIDHI Program:
- NIDHI-PRAYAS (Promoting and Accelerating Young and Aspiring Innovators and Startups): NIDHI-PRAYAS focuses on the transformation of innovative concepts into tangible prototypes. This component offers mentoring and financial assistance at the Proof-of-Concept level, providing crucial support to aspiring innovators and startups.
- NIDHI Entrepreneurs-In-Residence (EIR) Program: The NIDHI EIR Program extends fellowships to students pursuing entrepreneurship, aiming to nurture and inspire young entrepreneurs as they embark on their innovative journeys.
- NIDHI Seed Support Program: The NIDHI Seed Support Program furnishes early-stage seed funding to startups, enabling them to initiate their innovation-driven endeavors and propel their growth trajectory.
- NIDHI Accelerator Program: The NIDHI Accelerator Program is designed to accelerate the investment readiness of startups. By equipping startups with the essential resources and guidance, this program facilitates their growth and scaling.
- Technology Business Incubators (TBIs) and Centres of Excellence (CoE): NIDHI establishes state-of-the-art Technology Business Incubators and Centres of Excellence, providing cutting-edge infrastructure to incubate startups and foster innovation across various technology sectors.
- NIDHI-Inclusive Technology Business Incubators (iTBI) Program: The iTBI program strengthens the innovation and startup incubation ecosystem in Tier II and Tier III cities. Notably, this initiative promotes inclusiveness by encompassing diverse geographies, gender representation, and individuals with special abilities.
Key Collaborators and Partners:
- Council of Scientific and Industrial Research (CSIR): NIDHI collaborates closely with CSIR to develop advanced incubation facilities and shape the incubation landscape. CSIR’s active role includes translating technology and products for societal, industrial, and national benefit.
- Department of Biotechnology (DBT) through Biotechnology Industry Research Assistance Council (BIRAC): NIDHI collaborates with DBT and BIRAC to foster entrepreneurship and innovation in the biotechnology domain. This partnership drives translational research and supports the creation of affordable biotech solutions.
- Ministry of Defence (MoD) – Innovations for Defence Excellence (iDEX): NIDHI’s partnership with MoD’s iDEX initiative contributes to an innovative ecosystem involving industries, startups, and R&D institutes. This collaboration propels advancements in defence and aerospace technologies.
- Ministry of Electronics & Information Technology (MeitY): NIDHI’s partnership with MeitY under the Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme empowers technology-driven startups. Collectively, they offer both financial and technical assistance to nurture entrepreneurship centered around technology.
- Collaboration with Indian Council of Agricultural Research (ICAR): NIDHI collaborates with ICAR’s National Agriculture Innovation Fund to empower agri-tech startups. Collaborative endeavors result in the establishment of Agri-business Incubator (ABIs) centers, fostering the development of inventive solutions in the field of agriculture.
India’s Innovation and Startup Ecosystem:
- Global Innovation Index (GII) 2022 ranks India 40th among innovative economies.
- India is the 3rd largest startup ecosystem globally as of May 2023.
- India boasts 108 Unicorns with a cumulative valuation of USD 340.80 billion.
- Challenges include low Gross Domestic Expenditure on R&D (GERD) compared to leading innovators, funding limitations, revenue generation issues, and infrastructure gaps.
- Public sector dominates R&D spending in India, differing from the global trend.
Other Initiatives to Foster Startup and Innovation:
| Initiative | Description |
| Fund of Funds for Startups (FFS) Scheme | A government initiative that provides financial support to venture capital firms, enhancing their ability to invest in startups. |
| Credit Guarantee Scheme for Startups (CGSS) | A scheme that offers credit guarantee to startups, enabling them to secure loans without collateral and ease funding challenges. |
| Startup India Hub | A single-point platform for startups to access information, resources, and networking opportunities, fostering their growth. |
| Startup India Seed Fund Scheme (SISFS) | A scheme providing financial support to startups in their early stages, assisting them in turning their ideas into viable businesses. |
| Centres of Excellence | Establishing centers dedicated to specific sectors or domains, facilitating innovation, research, and collaboration in those areas. |
| Startup India Action Plan (SIAP) | A comprehensive plan aimed at promoting and supporting startups through various measures, including funding, taxation, and regulations. |
SOURCE:https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1945353
Q.1 Consider the following statements:
- NIDHI collaborates closely with the Ministry of Finance to shape and develop incubation facilities.
- The NIDHI-Inclusive Technology Business Incubators (iTBI) Program strengthens the innovation ecosystem in Tier II and Tier III cities, promoting inclusiveness.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
ANSWER: B
Q.2 Consider the following statements:
- The NIDHI program supports the transformation of innovative concepts into tangible prototypes through NIDHI-PRAYAS.
- The NIDHI Seed Support Program offers late-stage funding to startups for expansion.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
ANSWER: A
Q.3 Discuss the significance and components of the National Initiative for Developing and Harnessing Innovations (NIDHI) in fostering innovation and supporting startups in India. Also, analyze the challenges faced by India’s innovation landscape and suggest measures to address them.
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