DPIIT Promotes Manufacturing Incubators to Boost Startup Ecosystem

The Department for Promotion of Industry and Internal Trade (DPIIT) is implementing various initiatives to foster innovation in manufacturing by supporting startups and developing manufacturing incubators. These efforts are aimed at strengthening the startup ecosystem and the broader industry to drive economic growth and self-reliance.

Industrialization and manufacturing are pivotal for economic development, as they help nations build robust manufacturing supply chains and position themselves as key players in global trade. A strong manufacturing base enhances innovation and competitiveness, creates jobs, improves living standards, and ensures economic stability.

India has seen significant growth in its manufacturing capabilities, thanks to landmark reforms and initiatives. This growth has diversified India’s manufacturing portfolio, making the country a dynamic hub driven by innovation, technology, and skilled labor. However, there is a need to focus on manufacturing innovation alongside production expansion. Recent advances in manufacturing technology and scientific breakthroughs have been largely driven by startups and entrepreneurs, who are shifting global value chains to India through domestic creation and innovation. This trend has improved product quality, bolstered India’s global trade relations, and created numerous jobs.

At the first-ever ‘Startup Mahakumbh’ festival, organized with DPIIT’s support, dedicated pavilions for B2B manufacturing incubators and startups highlighted the importance of institutionalizing manufacturing incubators. Additionally, the ‘ONDC-Startup Mahotsav’ saw participation from emerging businesses and unicorns, encouraging them to integrate with startups to promote domestic manufacturing. DPIIT is also leveraging its autonomous institutes to promote manufacturing incubation. For instance, the National Council for Cement and Building Materials (NCCBM) launched an incubation center 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 products. DPIIT has reached out to over a hundred large corporates, industry associations, veterans, and unicorns to emphasize the importance of manufacturing incubators and collaboration with startups.

Manufacturing startups need support from various ecosystem stakeholders to grow and scale. Manufacturing-focused incubators are crucial as they provide essential pilot, scaling, and manufacturing facilities, offering plug-and-play options that reduce the burden of high capital expenditure. These incubators offer shared facilities to support innovative product development and early-stage manufacturing, acting as interfaces between startups and larger companies. They provide access to pilot manufacturing facilities, test beds, prototyping facilities, design centers, and assistance with technology management, market access, and risk capital.

Incubators can be established by corporates, academic institutions, and research institutes. For corporates, incubating manufacturing startups offers several benefits, including leveraging startup innovation through technology transfer and co-creating groundbreaking products. This collaboration helps corporates gain a competitive edge, attract new customers, and reduce R&D costs and time. Working with startups can also enhance internal teams and promote intrapreneurship.

Corporates can start with small-scale incubation programs and gradually expand, eventually setting up separate entities for long-term incubation activities. The scale and scope of these activities can be customized to meet corporate goals. A strong framework for technology transfer and procurement will facilitate mutually beneficial collaborations between startups and corporates.

Eligible entities can also explore government benefits extended to incubators through 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 crucial for India to achieve self-reliance and global competitiveness. The startup ecosystem can support manufacturing startups by creating more incubators that nurture innovation and enhance the nation’s manufacturing capabilities. Collaboration between established corporates and emerging startups will create a mutually beneficial environment, contributing to the overall development of the nation.