(a) whether the Government proposes to create Innovation Fund in order to make
Small and Medium Enterprises (SMEs) all over the country technologically better and more
competitive to produce better products by research and development;
(b) if so, the details thereof;
(c) whether the Govt. proposes to provide incentives for new innovations under the
scheme to increase competition among the SMEs; and
(d) if so, the details thereof along with the action plan formulated in this regard?
MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI K.H. MUNIYAPPA)
(a) & (b) : No Madam. National Innovation Council in collaboration with Ministry of
Micro, Small and Medium Enterprises (MSME) has proposed to set up a dedicated fund in
the name of ‘India Inclusive Innovation Fund’ for promoting grass-root innovations with
social returns as well as modest economic returns. The total corpus of this fund is
proposed to be Rs.5,000 crores of which the Government contribution may be upto the
maximum of only 20% i.e., Rs.1,000 crores.
(c) & (d): No Madam. The India Inclusive Innovation Fund would back enterprises
developing innovative solutions primarily for citizens who lie in the lower half of
India’s economic pyramid, with limited physical and institutional access to basic
services. This fund and its investee enterprises would not only address developmental
needs but would address these needs in a commercially viable fashion. This fund would,
therefore, operate as a for-profit entity with a social investment focus.
The focus of the fund, therefore, is not for increasing competition among the SME.