Govt. mulls Rs. 1-trillion fund to spur local deep-tech.

La Excellence IAS Academy

Govt. mulls Rs. 1-trillion fund to spur local deep-tech.

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La Excellence IAS Academy | March 11, 2024 | Science and Technology

Syllabus: GS-III, Subject: Science and Technology, Topic: Emerging Technology, Issue: Deep Tech

Context: Capital support scheme to encourage indigenous deep-tech and cutting-edge technologies.

Deep technology:

  • It refers to advanced technologies based on some form of substantial scientific or engineering innovation.
  • The innovations are “deep” in that they are sophisticated, very advanced answers to complex challenges or issues.

Governments Support:

  • Financial support to encourage adoption of indigenous deep-tech and cutting-edge technologies in defence, energy and electronics.
  • Initial period of five years, scheme to be run by
    • National Bank for Financing Infrastructure and Development (NaBFID) and
    • National Investment and Infrastructure Fund (NIIF)

Challenges in deep tech:

  • Need for greater investment in R&D.
  • Improvement in infrastructure.
  • Addressing regulatory and policy hurdles.
Prelims Connect (Institutions in News):

National Bank for Financing Infrastructure and Development (NaBFID)

●             India’s fifth All India Financial Institution (AIFI),established in 2021 under NaBFID Act 2021.

●             Core function: it directly or indirectly lends, invests in, or attracts investments for infrastructure projects across India.

●             Regulated and supervised by Reserve Bank of India.

National Investment and Infrastructure Fund:

●             Established in 2015.

●             Anchored by the Government of India but functions with operational independence.

Collaborative investment platform: It attracts capital from both domestic and foreign sources to fund infrastructure and related sectors in India


+1 Advantage for Mains (Data Point)

India’s gross expenditure on R&D is at around 0.7% of GDP compared with its BRICS peers— China (2.4%), Brazil (1.3%) and Russia (1.1%).

Source: Indian Express

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