Why in the news?

• Electronics Development Fund has supported 128 Indian start ups with an investment of 257.77 Crore rupees.

Electronics Development Fund (EDF)

• What is it?:
  • The Electronics Development Fund (EDF) is created by the Government of India as part of the Digital India Programme.
  • Its purpose is to provide Risk Capital funding to promote innovation, research, development and competitiveness in Electronics, ICT, Nano-electronics sectors.
• Nodal Ministry: Ministry of Electronics & Information Technology (MeitY).
• Objectives:
  • Support creation of a vibrant ecosystem of venture capital funds focused on:
    • Electronics System Design & Manufacturing (ESDM)
    • ICT & IT-based startups
    • Nano-electronics innovation
  • Encourage indigenous product development to reduce import dependence.
  • Strengthen India’s ability in IPR creation, high-tech R&D and innovation.
• Nature of the Fund:
  • EDF is structured as a Fund of Funds (FoF).
  • Government participates as a “Fund Manager” and “Anchor Investor” through Canbank Venture Capital Fund Ltd (CVCFL).
  • EDF does not invest directly in companies; instead, it invests in Daughter Funds (VC/Angel Funds).
• Significance:
  • India is one of the world’s largest consumers of electronics; EDF helps build domestic capability.
  • Acts as a bridge between R&D and commercialisation.
  • Encourages private venture capital participation in high-risk technology sectors.
  • Facilitates creation of deep-tech electronics startups with global competitiveness.
• Achievements:
  • Multiple “Daughter Funds” have been approved under EDF.
  • Startups supported through EDF cover areas such as Semiconductor design, IoT devices, Medical electronics, Telecom equipment, Smart manufacturing etc.
  • EDF is highlighted as a key enabler for self-reliance in electronics manufacturing.