Relevance: GS Paper III – Indian Economy (Electronics Manufacturing Policy); GS Paper II – Government Initiatives
Source: Press Information Bureau, Ministry of Electronics & IT

The News

The Government of India’s Electronics Development Fund (EDF) has invested ₹257.77 crore across eight daughter funds, which in turn have committed ₹1,335 crore to 128 selected start-ups in the electronics and IT sectors. These supported firms have generated over 23,600 jobs and produced 368 intellectual property (IP) assets, reinforcing India’s push towards self-reliance in electronics manufacturing.

What is the Electronics Development Fund?

The EDF is a fund-of-funds model managed under the Ministry of Electronics & Information Technology (MeitY), aimed at promoting innovation, design development, and indigenous electronics manufacturing. It operates by investing in professionally managed daughter funds, which fund technology start-ups across deep tech, IoT, electronics system design, and semiconductor domains.

Key Facts at a Glance

Why It Matters

• Accelerates progress toward Atmanirbhar Bharat in electronics and semiconductors.
  
• Aligns with National Electronics Policy, aiming to grow electronics manufacturing to US$300 billion by 2026–27.
  
• Supports SDG 9 – Industry, Innovation and Infrastructure, and SDG 8 – Decent Work and Economic Growth.
  
• Demonstrates a successful model of public-private partnership and tech-start-up ecosystem fostering.
  

UPSC Prelims Practice Question

With reference to the Electronics Development Fund (EDF), consider the following statements:

1. EDF directly manufactures electronics products in the country.
   
2. EDF follows a fund-of-funds model investing in daughter funds which support start-ups.
   
3. One of the objectives of EDF is to create a national pool of intellectual property in electronics.
   

Which of the statements are correct?
(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 2 and 3 only

Answer: (d) 2 and 3 only

One-line Wrap: The Electronics Development Fund underscores India’s strategic push into high-technology manufacturing, innovation and start-up empowerment, reinforcing its role as a rising global electronics hub.