Bangalore: Government of India will be soon announcing the guidelines for financially aiding startups in the electronics sector. It is said that the government may chip in 15 to 25 percent of total investments for projects through fund managers that include large IT companies and banks, reports HBL.

This is the first time that the country is coming up with such an initiative which will primarily help the private R&D sector said a senior official from the department of Electronics and Information Technology. This comes as a real booster, considering the slow pace at which the country’s GDP is growing in terms of research and development. It is also reported that once the final guidelines are out, the return on investment will be then chalked out.

The guidelines which will be a part of National Electronic Mission which in turn comes under National Electronics Policy 2012. The funds will be routed through the Government's 'Electronic Development Fund' scheme which expects to invest over 12,000 crores by the end of 2020.

It is also reported that a high level committee under the chairmanship of R. Chidambaram, Principal Scientific Adviser to the Government, will be preparing the guidelines. ‘We expect additional mobilization of around Rs 30,000 crore — to be raised from the industry by 2020. The industry is nascent right now, so we expect it to start slowly and invest around Rs 50 crore or Rs 100 crore to start with’ said the official.

The HBL reports that the government is also ready to work with NASSCOM to enhance the ecosystem by supporting startups.

Also Read:

Indian Startups Offer Animal Lovers An Alternative To Leather

10 Amazing Big Data Startups That You Can Bet On