India has emerged as an innovation hub, but next wave will come from Bharat: Shivaji Dhawad, InFED-IIM Nagpur

The IIMN Foundation for Entrepreneurship Development (InFED), the business incubator of IIM Nagpur, believes that India’s next wave of innovation, inclusivity, and sustainability will be driven by entrepreneurs from Bharat—individuals tackling real-world challenges in tier II and tier III regions. While India has emerged as a vibrant innovation hub, the next wave will come from the grassroots, says Shivaji Shriram Dhawad, COO, InFED-IIM Nagpur.

In a conversation with ET Digital, Dhawad also explains how InFED supports start-ups by refining pitches, developing financial models, articulating impact, and facilitating connections with VCs, angel networks, and CSR funds during seed and early stages. Edited excerpts:

The Economic Times (ET): What are the aspects of entrepreneurship, start-up growth, and ESG initiatives at InFED, IIM Nagpur?

Shivaji Shriram Dhawad (SSD): At InFED, we believe that India’s next leap in innovation, inclusivity, and sustainability will be powered by entrepreneurs from Bharat —those solving real-world problems across tier II and tier III regions.

Our work sits at the intersection of entrepreneurship and development. InFED nurtures early-stage and grassroots innovators—from rural micro-entrepreneurs and forest-based artisans to student innovators and first-generation founders. Through curated bootcamps, mentoring, incubation support, and market linkages, we aim to build capacity where it is needed the most.

We also focus on start-up growth and acceleration. From MVP to market, we guide start-ups through structured incubation, funding access, and go-to-market strategies. InFED’s Virtual CFO Services, AI Master Trainer programs, and Export Incubation Cells are some of the unique interventions driving scalable, investable businesses.

In addition, InFED’s ESG-aligned approach embeds sustainability into enterprise. From the forest economy initiative to fellowships for ESG founders, we are enabling ventures that respect people, profit, and the planet. Our climate-smart skilling models, especially for tribal and rural communities, are creating livelihoods that last.

ET: How can start-ups and MSMEs from any part of the country typically reach InFED? What’s the process of screening, and is there a fee?
SSD: There is no fee for the screening process. Start-ups can connect with InFED directly through various modes, such as e-mail or directly contacting us through the contact details mentioned on the website. The process is very simple, and any start-ups across the country can apply.

The process overview includes the submission of an executive summary or business plan that covers several key aspects, including industry experience, emotional endurance, coachability, passion, entrepreneurial experience, commitment, management skills, a market access plan, financial status, job creation potential, growth prospects, marketability, R&D commitment, product lifecycle, manufacturing process, and time to market.

In stage 2, InFED conducts research and due diligence on the business, team, and industry. Additional information or revised submissions may be requested, and applicants must provide a declaration permitting this due diligence.

ET: Where is India’s start-up ecosystem headed? Has the country truly emerged as a vibrant hub for innovation?
SSD: India’s start-up story is no longer confined to metro cities or elite campuses. The real shift is happening in tier II and tier III towns—where the aspirations are high, the problems are local, and the potential is untapped.

India has indeed emerged as a vibrant innovation hub, but the next wave will come from the grassroots. At InFED, we are witnessing first-hand how young entrepreneurs from smaller towns are building solutions rooted in their local—from climate-resilient agriculture to rural fintech, tribal crafts to export-ready ODOP products.

The future lies in decentralising incubation and funding access, bridging skill gaps through contextual capacity building and making local problems investable and scalable.

ET: Do you also help small businesses, MSMEs, and start-ups that are part of your incubator in raising capital?
SSD: Yes, absolutely. At InFED (IIM Nagpur), supporting start-ups in raising capital is a core part of our incubation journey, especially for entrepreneurs from tier II and tier III towns, who often lack access to early-stage networks.

We help start-ups through pitch refinement, financial modelling, and impact articulation; seed and early-stage connections with VCs, angel networks, CSR funds, and government schemes; and handholding for Startup India, BIRAC, MeitY, MSME schemes, and strategic CSR alliances.

We also help start-ups streamline compliance, term sheet negotiations, and due diligence. InFED doesn’t just incubate ideas; we build fundable businesses, especially in underserved regions. We believe capital should follow innovation—and that includes innovations from Bharat.

ET: What are your upcoming plans?
SSD: As India’s development story deepens beyond metros, InFED (IIM Nagpur) is committed to becoming a catalyst for entrepreneurship-led transformation in tier II and tier III regions.

Our upcoming plans are rooted in scale, depth, and sustainability. We are looking at launching satellite incubation touchpoints in underserved districts, partnering with academic institutions and district industry centers for local outreach, and building export readiness, market access, and fulfilment support for ODOP and non-ODOP entrepreneurs.

We are also focusing on scaling the AI Master Trainer Program for village-level entrepreneurs (VLEs) across India and introducing contextual AI tools for agriculture, crafts, and rural commerce.

In terms of climate-smart livelihood initiatives, we are working on piloting green enterprise models in forest and tribal belts through the Zero Mile Forest Economy Initiative and promoting circular economy start-ups in mobility, energy, and waste management.

In addition, we are launching a virtual CFO services desk to support start-ups, FPOs, and SHGs with fundraising and financial compliance and creating co-investment models with CSR, government, and private investors.