IAS Gyan

Daily News Analysis


8th August, 2023 Polity

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Context: In the Rajya Sabha, the Union Minister of State Science and Technology stated that the NIDHI program has various components to support innovations, startups and startup incubation ecosystem in the country.


  • NIDHI (National Initiative for Development and Harnessing Innovations) is a flagship program of the Department of Science and Technology (DST) that aims to foster a culture of innovation and entrepreneurship in the country.
  • NIDHI was launched in 2016 as part of the Startup India initiative of the Prime Minister, with a budget allocation of Rs. 500 crores for implementing various components of the program.
  • NIDHI is an umbrella program that covers the entire spectrum of innovation and startup development, from ideation to market. It supports aspiring entrepreneurs, innovators, startups, incubators, mentors, investors and other stakeholders of the innovation ecosystem.


  • To inspire innovation and entrepreneurship among young individuals, by cultivating a culture of creativity, risk-taking, and problem-solving.
  • To nurture a pipeline of startups that are ready to scale and sustain, by providing them with access to funding, mentoring, incubation, networking, and other resources.
  • To address complex societal and economic challenges, by leveraging technology-driven solutions that can create positive impact across various sectors.
  • To elevate India's economic competitiveness, by boosting its innovation quotient and fostering wealth creation.

NIDHI has eight components that address different stages and aspects of startup creation and growth:

  • NIDHI-PRAYAS: Promoting and Accelerating Young and Aspiring Innovators and Startups. This component provides grants of up to Rs. 10 lakhs and access to fabrication labs (Fab Labs) for innovators to develop prototypes of their ideas.
  • NIDHI-EIR: Entrepreneur-in-Residence. This component provides fellowships of up to Rs. 30,000 per month for a period of one year to aspiring entrepreneurs who want to pursue their startup ideas full-time.
  • NIDHI-TBI: Technology Business Incubator. This component supports the establishment and operation of technology business incubators (TBIs) that provide physical infrastructure, mentoring, networking, training and other services to startups.
  • NIDHI-SSS: Seed Support System. This component provides seed funding of up to Rs. 1 crore to startups incubated in TBIs for product development, validation, marketing and scaling up.
  • NIDHI-Accelerator: Accelerator Program. This component supports the design and delivery of accelerator programs that provide intensive mentoring, coaching, exposure and access to potential investors and customers of startups.
  • NIDHI-CoE: Centre of Excellence. This component supports the creation and strengthening of centres of excellence (CoEs) that act as hubs of innovation and entrepreneurship in various domains and sectors.
  • NIDHI-GCC: Grand Challenges and Competitions for scouting innovations. This component organizes grand challenges and competitions to identify and reward innovative solutions to social and economic problems.
  • NIDHI-SPICE: Sustainable Progress through Innovation and Commercialization by Entrepreneurs. This component facilitates the creation and sustenance of a conducive policy environment for innovation and entrepreneurship at the national, state and local levels.


  • Inspiring Innovation and Entrepreneurship: By instilling a culture of innovative thinking and entrepreneurial spirit in the youth, NIDHI lays the foundation for a future where novel ideas and inventive solutions drive progress and growth.
  • Nurturing Startup Ecosystem: Through its emphasis on nurturing startups, NIDHI paves the way for a robust entrepreneurial landscape, cultivating enterprises that not only fuel economic expansion but also provide avenues for employment and wealth generation.
  • Addressing Complex Challenges: NIDHI's focus on technology-driven solutions addresses intricate societal and economic challenges, translating into real-world advancements that positively impact sectors critical to the nation's well-being.
  • Elevating Economic Competitiveness: Acting as a catalyst for India's global competitiveness, NIDHI fortifies the economy by infusing it with the energy of innovation and the drive of entrepreneurship, positioning the nation as a dynamic player on the international stage.
  • Enabling Collaborative Progress: NIDHI's inclusive approach brings together a diverse array of stakeholders, fostering a collaborative environment where academia, industry, government, investors, mentors, and others collectively contribute to the growth of innovation and its far-reaching effects.


  • Awareness and Outreach Deficiency: The lack of widespread awareness limits NIDHI's potential impact, necessitating strategic efforts to effectively reach and engage potential beneficiaries.
  • Mentorship and Expertise Gaps: A shortage of experienced mentors, experts, and trainers poses a hurdle to nurturing startups effectively, demanding initiatives to bridge this expertise gap.
  • Coordination and Standardization Challenges: The absence of standardized processes and cohesive coordination among various components and stakeholders can impede the seamless functioning of NIDHI.
  • Monitoring and Evaluation Shortcomings: Inadequate mechanisms for monitoring and evaluation may hinder the measurement of NIDHI's progress and the fine-tuning of its initiatives for optimal results.
  • Market Access and Investor Connectivity: Startups' struggles to access markets, reach customers, and attract investors call for concerted efforts to facilitate these crucial connections and opportunities.
  • Regulatory and Policy Hurdles: The absence of a supportive regulatory and policy environment can hinder startups' growth and development, necessitating efforts to create a conducive ecosystem.

Way forward

  • Comprehensive Awareness Campaigns: Launch targeted awareness campaigns through diverse media platforms to ensure that potential beneficiaries are informed about NIDHI's offerings and benefits.
  • Mentorship and Training Initiatives: Develop mentorship and training programs to foster a pool of qualified mentors, experts, and trainers, enhancing startup guidance and support.
  • Standardization and Collaboration Framework: Establish a unified framework that encourages coordination and standardization across NIDHI's components and stakeholders, promoting streamlined operations.
  • Robust Monitoring and Evaluation System: Create a transparent and rigorous system for monitoring and evaluating NIDHI's activities, enabling data-driven decision-making and continual improvement.
  • Market Access and Investor Partnerships: Forge strategic partnerships to facilitate startups' access to markets, customers, and investors, thereby accelerating their growth trajectory.
  • Policy Advocacy and Simplification: Collaborate with policymakers to streamline regulatory processes and create a conducive policy environment, fostering a nurturing ecosystem for startups.


  • NIDHI stands as a catalyst for innovation and entrepreneurship in India, providing a vital platform for nurturing creative minds. Its multifaceted approach, though facing challenges, holds the promise of transforming ideas into impactful ventures. By fostering collaboration between academia, industry, and aspiring entrepreneurs, NIDHI paves the way for economic growth and societal advancement. Continued support, adaptability, and a focus on inclusivity will be key to realizing NIDHI's full potential and propelling India towards a more innovative and prosperous future.

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NIDHI Companies: https://www.iasgyan.in/daily-current-affairs/nidhi-companies


Q. Why is promoting entrepreneurship crucial for India's economic growth, and what is the significance of fostering a culture of entrepreneurship? What are the key challenges hindering entrepreneurial development in the country, and what strategies can be implemented to overcome these obstacles and pave the way forward for a thriving entrepreneurial ecosystem?