Government proposes to launch innovation fund for MSMEs: Kalraj Mishra

NEW DELHI: The government proposes to launch an innovation fund exclusively for Micro, Small and Medium Enterprises (MSMEs) to encourage and promote knowledge-driven ventures, Union Minister Kalraj Mishra today said.

Mishra said the proposed fund, when established, would help in fostering entrepreneurship in rural areas amongst women and the SC/STs. The fund would also cover activities of the khadi, village and coir sectors, he said.

Besides, Mishra said the government has to play a key role in enhancing the country's R & D potential through higher fund allocation and simplification of policies.

"Very clearly India has to dedicate more funds and time to its Research & Development. The recent success of the Mars Orbiter Mission speaks volumes for the R&D capabilities and given the appropriate funds it is capable of scaling up its innovative productivity," Mishra said at the Global Research & Development Summit organised by Ficci.

"The Government has to play a vital role in promoting the R&D potential in India and therefore must first simplify its policies," the micro, small & medium enterprises ( MSME) Minister emphasised.

In India, the total spending on R&D is around 1 per cent of the GDP. The Government's spending is 2 to 3 times more than the industry's. The ratio being approximately 85 per cent Government, 15 per cent industry.

Internationally, however, countries like Israel spend more than 4 per cent of their GDP on R & D. Japan, South Korea and Scandinavian countries spend more than 3 per cent while the US, France and Germany spend over 2 per cent, and China more than 1.5 per cent of its GDP.

However, in most of these countries the industry spends more on R & D than the government, he pointed out.