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India to get $1bn Innovation fund
April 14, 2013, 11:39 am


There are over 26 million MSMEs in the country [AP]

The proposed $1 billion (Rs 5,500 crore) India Inclusive Innovation Fund, focusing on generating employment and supporting livelihoods across the country through innovative enterprises, is expected to be in place by June.

The Indian ministry of micro, small and medium enterprises (MSME) is working on the fund, which will help Indian enterprises in building innovative solutions for developmental challenges.

“It is in the process and we will send the proposal to the Cabinet for its consideration in the next few days. The fund is expected to be in place in the next two months,” an MSME official said.

Indian small and medium enterprises face challenges such as lack of access to finance, non-availability of collaterals and delayed realisation of receivables.

There are over 26 million MSMEs in the country that provide employment to around 60 million people.

The new fund would be guided by four objectives – focus on the poor, combine social and commercial returns, drive employment and livelihood generation and help establish a model for wider inclusive innovation funding, the official added.

The fund would promote innovation, which is aimed at improving the competitiveness and efficiency of small and medium enterprises.

Of the total fund amount, 20 per cent would come from the government and the remaining from banks, financial institutions and multi-lateral agencies, the official said.

Source: Agencies

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