National Initiative for Developing and Harnessing Innovations

The National Initiative for Developing and Harnessing Innovations (NIDHI) is a comprehensive programme launched by the Department of Science and Technology (DST), Government of India, to strengthen the innovation and start-up ecosystem of the country. It focuses on nurturing ideas and innovations (knowledge-based and technology-driven) into successful and scalable enterprises. The initiative aims to create a robust network of technology incubators, start-ups, and funding mechanisms to accelerate India’s transition into an innovation-led economy.

Background and Genesis

The NIDHI programme was introduced in 2016 under the umbrella of the National Science and Technology Entrepreneurship Development Board (NSTEDB), a body established by the DST. It was designed to support the government’s broader agenda of promoting ‘Startup India’, ‘Make in India’, and ‘Atmanirbhar Bharat’ initiatives.
NIDHI was conceived to fill the critical gaps in the innovation chain — from ideation to commercialisation — by providing targeted support at each stage of enterprise development. It represents a holistic innovation support system encompassing infrastructure, funding, mentoring, and market access.
The programme operates through a network of Technology Business Incubators (TBIs) and Innovation and Entrepreneurship Development Centres (IEDCs) established in academic and research institutions across India.

Objectives of NIDHI

The primary objectives of the National Initiative for Developing and Harnessing Innovations are:

• To nurture knowledge-based and technology-driven innovations into viable and scalable start-ups.
• To promote entrepreneurial culture among students, researchers, and innovators in academic institutions.
• To provide financial and infrastructural support across the stages of the innovation value chain.
• To create and strengthen the innovation and incubation ecosystem through institutional linkages and capacity building.
• To support early-stage funding mechanisms that enable start-ups to cross the ‘valley of death’ between prototype development and market entry.
• To foster industry-academia collaboration and promote indigenous technology development for societal and industrial impact.

Components and Structure of NIDHI

The NIDHI initiative is structured as a multi-component programme, each addressing a specific segment of the innovation and entrepreneurship pipeline. Its key components are as follows:

1. NIDHI-PRAYAS (Promoting and Accelerating Young and Aspiring Innovators and Startups):
   • Provides grant funding of up to ₹10 lakh to individuals or teams to translate innovative ideas into working prototypes.
   • Targets early-stage innovators and first-time entrepreneurs.
   • Implemented through PRAYAS centres located within approved TBIs.
2. NIDHI-EIR (Entrepreneur-in-Residence):
   • Offers a fellowship of up to ₹30,000 per month for 12–18 months to aspiring entrepreneurs.
   • Encourages graduates and researchers to pursue entrepreneurship instead of conventional employment.
3. NIDHI-SSS (Seed Support System):
   • Provides seed funding of up to ₹1 crore to promising start-ups incubated at DST-supported TBIs.
   • Aims to bridge the gap between prototype development and commercialisation.
4. NIDHI-CoE (Centres of Excellence):
   • Establishes high-quality incubation and innovation centres with advanced facilities in select institutions.
   • Focuses on sector-specific innovation areas such as biotechnology, clean energy, and advanced materials.
5. NIDHI-TBI (Technology Business Incubators):
   • Core component that provides physical infrastructure, technical support, and mentoring for start-ups.
   • Supports incubation of early-stage ventures in collaboration with industry experts and investors.
6. NIDHI-Accelerator:
   • Assists mature start-ups to scale up through mentorship, market access, and investor networking.
   • Helps in securing venture capital and global partnerships.
7. NIDHI-Grand Challenges and NIDHI-SIH (Student Innovation Hubs):
   • Promotes problem-solving and product innovation among students through competitions and innovation hackathons.
8. NIDHI-S4SI (Start-up Support for Scaling Innovations):
   • Provides targeted funding and mentoring support for scaling successful start-ups that have achieved early traction.

Together, these programmes form a comprehensive innovation value chain covering ideation, incubation, acceleration, and scale-up.

Institutional Mechanism and Governance

The NIDHI initiative is implemented through a multi-tier structure coordinated by the National Science and Technology Entrepreneurship Development Board (NSTEDB) under DST.

• Department of Science and Technology (DST): Policy formulation, funding allocation, and oversight.
• NSTEDB: Administrative and operational management of NIDHI components.
• Implementing Agencies: Academic and research institutions, including IITs, NITs, IISERs, and universities, act as host organisations for incubators.
• NIDHI Seed Fund and PRAYAS Centres: Serve as local implementation nodes that identify, mentor, and support innovators.

Additionally, partnerships with industry bodies, venture capital firms, and state governments are encouraged to leverage co-funding and market linkages.

Funding and Support Mechanisms

The NIDHI initiative operates through a grant-based and equity-linked support model. Funding under various sub-programmes is provided by the DST to implementing incubators, which in turn disburse financial assistance to start-ups and innovators.
Key funding channels include:

• Prototype grants (PRAYAS): ₹5–10 lakh per project.
• Fellowships (EIR): ₹30,000–₹35,000 per month.
• Seed funding (SSS): Up to ₹1 crore per start-up.
• Infrastructure grants: For setting up incubator facilities, labs, and equipment.

Support is also extended for capacity building, training, and international collaboration to strengthen the innovation ecosystem.

Achievements and Impact

Since its inception, NIDHI has made a substantial impact on India’s innovation and entrepreneurship landscape. Some notable achievements include:

• Establishment of over 160 Technology Business Incubators (TBIs) and 65 PRAYAS Centres across India.
• Support to more than 5,000 start-ups and 8,000 innovators through grants, mentorship, and incubation.
• Creation of over 1.2 lakh direct and indirect jobs in the innovation ecosystem.
• Several successful start-ups have emerged from NIDHI-supported incubators, particularly in sectors like healthcare, clean energy, agri-tech, deep-tech, and AI.
• Contribution to India’s rise in the Global Innovation Index, where India moved into the top 40 innovative economies by 2024.

The initiative has also helped strengthen regional innovation ecosystems by promoting start-ups in Tier II and Tier III cities, thus decentralising entrepreneurial activity.

Challenges and Limitations

Despite its wide reach, NIDHI faces several challenges:

• Limited scalability of incubator infrastructure in rural and semi-urban areas.
• Dependence on government funding without sufficient private capital mobilisation.
• Variation in quality of incubation services across centres.
• Need for post-incubation support for start-ups in advanced stages.
• Insufficient awareness among grassroots innovators about available support mechanisms.

To overcome these, the government is focusing on public-private partnerships, greater industry participation, and stronger monitoring frameworks to ensure accountability and impact.

Significance and Way Forward

The National Initiative for Developing and Harnessing Innovations represents a holistic policy framework for fostering innovation-led entrepreneurship in India. By linking academia, industry, and government, it creates a pipeline for converting ideas into commercially viable technologies.
Going forward, NIDHI is expected to:

• Expand the network of incubation and innovation centres across all states.
• Introduce sector-specific accelerators focusing on deep-tech and sustainability.
• Strengthen global linkages through international incubation partnerships.
• Align its objectives with the National Deep Tech Startup Policy and Science, Technology, and Innovation Policy (STIP 2020).