DPIIT encourages large companies to collaborate with startups for business growth
- Ahead of the Startup Mahakumbh event in April, the government is encouraging large companies to collaborate with startups to tackle business challenges and promote entrepreneurship.
New Delhi: In preparation for the second edition of the Union government’s Startup Mahakumbh 2025 event, the Department for Promotion of Industry and Internal Trade (DPIIT) has urged large companies to collaborate with startups to address business challenges.
Such collaboration would be a way to promote the growth of emerging entrepreneurs, DPIIT secretary Amardeep Singh Bhatia said on Friday.
“Large companies may already have a significant workload, and when facing challenges, rather than allocating more internal resources, they might prefer to collaborate with external partners to find solutions. In this regard, we are encouraging them to work with startups,” Bhatia said, adding that several companies have come forward and signed memorandums of understanding for such collaborations.
Also read | Banks are stepping up partnerships with startups
Bhatia official also said that measures like the abolition of angel tax were helping startups return and register their firms in India.
“We are hoping that in the 10th year of the Startup India initiative, we will encourage private enterprises and companies to collaborate more with startups. This could include outsourcing certain tasks, working together to develop new products, and offering support through mentorship, access to labs, and testing facilities,” Bhatia added.
The secretary also said the government encouraged Indian startups to collaborate with international companies.
With many countries possessing large sovereign and investible funds, the government is also eager to assist Indian startups in connecting with these funds for fundraising opportunities.
DPIIT Joint Secretary Sanjiv said Saudi Arabia had shown interest in participating in the Startup Mahakumbh event, which is scheduled for April. The department has also urged corporate houses to place orders and increase procurements from startups.
“This year, we plan to have 75 challenges, in which companies will pose questions and share problem statements. The emphasis is that startups will get work out of it and can become part of the supply chain of big companies,” Sanjiv said.
To promote innovation and entrepreneurship, the government launched the Startup India initiative on 16 January 2016. The DPIIT has recognized about 150,000 entities as startups.
Under the Startup India initiative, the government is implementing three flagship schemes—the Startup India Seed Fund Scheme (SISFS), Fund of Funds for Startups (FFS), and Credit Guarantee Scheme for Startups (CGSS)—to support startups at various stages of their business cycle.
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Business NewsNewsDPIIT encourages large companies to collaborate with startups for business growth
First Published:10 Jan 2025, 08:21 PM IST
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