ITC, Flipkart, Mercedes-Benz among firms joining DPIIT to promote startup manufacturing

The Department for Promotion of Industry and Internal Trade (DPIIT) has signed agreements with more than 50 firms, including ITC, Flipkart, and Mercedes-Benz, to promote a manufacturing and innovation ecosystem for startups, an official said.

The department has reached out to large corporates, industry associations, unicorns, and sector veterans to encourage the establishment of manufacturing incubators and collaborations with emerging manufacturing startups.

“So far, the department has inked memorandum of understandings (MoUs) with over 50 firms for this,” the official said.

The initiative aims to strengthen the startup ecosystem by fostering innovation in manufacturing and supporting the creation of incubators to help startups scale efficiently.

Among the companies that have partnered with DPIIT under these MoUs are boAT, HDFC Capital Advisors, Hero Moto, Zepto, Kotak Mahindra Bank, Yes Bank, Paytm, Walmart, and Ather Energy.

Officials said manufacturing startups often need greater ecosystem support to grow, and incubators play a crucial role by providing pilot, scaling, and manufacturing facilities that offer plug-and-play options and reduce high capital expenditure.

These incubators enable startups to access shared facilities for product development and early-stage manufacturing, supporting growth and scalability within the ecosystem. They also serve as a bridge between startups and larger companies, offering access to pilot facilities, test beds, prototyping units, design centres, and market access support.

In addition to technology management and risk capital facilitation, the incubators help startups navigate early challenges and connect with established industry players.

Such incubators, the official added, can be set up by corporates, academic institutions, or research organisations to create a networked platform for manufacturing innovation in India.

(With inputs from PTI)