Bangalore: Government of India has realised the importance of innovation in the nation’s economic development. Taking a step in this direction, it has announced a fund of Rs 5000 crore which will help entrepreneurs realise their ideas, reported HT.

The money will probably be provided under the National Entrepreneurial Mission headed by Prime Minister and could also be linked with National Skill Development Mission also headed by the Prime Minister.

Currently India provides only about  1,200 per year for innovations which is nothing in front of US’s  29,000 crore and China’s  3,000 crore. Even smaller European countries provide more for entrepreneurs than India.

"The sector has potential to attract annual investment of  14,000 crore every year and therefore the government help is required for the kick start," a senior government official said.

This mission would also increase the number of incubators from present 120 to about 1,000 by 2020. Sasha Mirchandani, founder of Mumbai Angels said that this government’s initiative will help ease the funding process in the Indian startup ecosystem. This fund will start new public private partnerships with young bright minds, those who can provide jobs and attract foreign investment.