Government Seeks Stronger Corporate Alliances to Fuel Start-up Growth, Especially in Tier 2 Cities  

The Ministry of Commerce and Industry is urging large corporates and private companies to foster closer ties with Indian startups, particularly those focused on deep technology and for manufacturing incubators, according to Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT). As the country is gearing up for the tenth year of the Start-up India Initiative, the ministry is actively seeking to enhance both domestic and foreign support for the nation's burgeoning startup ecosystem, with special focus on tier 2 and tier 3 cities.

“We are hopeful in the 10th year we will be able to put in place a very robust, we will be able to push at least private enterprises, private companies to start collaborating more with start-ups in the form of outsourcing some of the innovative work to start-ups, collaborating with them in a much better way to bring in new products,” added Bhatia. Government is encouraging corporates to provide start-ups with access to laboratory and testing facilities, along with creating assured demand for innovative products. Bhatia stated that this will not only help start-ups gain confidence in their product development but also support them in scaling operations and accessing larger markets.  

The Ministry confirmed that ITC, a leading fast-moving consumer goods company, will soon sign an agreement with DPIIT to launch an incubation program focused on manufacturing startups. Additionally, DPIIT has reached out to the top 100 listed companies on the National Stock Exchange to encourage their participation in establishing manufacturing incubators.

“Whatever is happening is also encouraging tier 2 and tier 3 cities. Our assistance go towards funding, financing, promoting seed funding or through the AIFs (alternate investment funds) which fund the startup. And the incubators also,” added Bhatia.  

The move underscores the government’s commitment to integrating tier-2 and tier-3 cities into the broader start-up growth narrative, ensuring these regions benefit from the innovation wave sweeping the nation. The government plans to collaborate with state governments to set up more incubators for the start-ups in tier 2 and tier 3 cities.

With more collaborations with corporates both from India and abroad, the government aims to have ‘start-ups from every district of the country'.