India’s electronics sector has undergone a profound transformation, rapidly establishing itself as a significant global hub for both electronics design and manufacturing. To sustain this momentum and cultivate a dynamic culture of innovation, the Government of India launched the Electronics Development Fund (EDF) on February 15, 2016. Conceived as a strategic financial instrument, the EDF’s core mandate is to champion research, development, and entrepreneurship across the critical fields of electronics, nano-electronics, and information technology (IT).

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The success of the EDF is rooted in its innovative operational model: it functions as a “Fund of Funds”. This structure involves the EDF investing capital into professionally managed “Daughter Funds,” such as early-stage angel and venture funds. This indirect investment approach is crucial, as it allows for professional fund management while encouraging greater private sector participation. These Daughter Funds, in turn, are empowered to provide essential risk capital to emerging startups and companies dedicated to developing cutting-edge, advanced technologies. This mechanism has been pivotal in nurturing a resilient, self-sustaining electronics ecosystem that actively promotes indigenous product design and the creation of intellectual property (IP) within India.

The governance of the fund is structured to ensure accountability and professional management. The Ministry of Electronics and Information Technology (MeitY) serves as the anchor investor, providing strategic oversight. Canara Bank acts as the sponsor and trustee, with Canbank Venture Capital Funds Ltd. managing the investments. Each Daughter Fund is required to be registered in India and adhere to applicable regulations, guaranteeing transparency and alignment with the EDF’s national objectives.

The EDF’s impact on India’s technological landscape is measurable and significant. As of recent reporting (September 30, 2025), the fund has made a direct investment of ₹257.77 crore across eight Daughter Funds. Leveraging this foundational capital, these Daughter Funds have successfully deployed a total of ₹1,335.77 crore to support 128 startups and ventures nationwide.

The financial support provided by the EDF framework has directly contributed to the creation of over 23,600 high-skilled jobs within the supported enterprises, showcasing its role as a powerful engine for employment generation in advanced technology domains. Furthermore, the fund has played a decisive role in generating or facilitating the acquisition of 368 intellectual properties (IPs), establishing a valuable national resource pool. The fund also demonstrates financial prudence, with Daughter Funds having successfully exited 37 investments, generating cumulative returns of ₹173.88 crore.

The startups supported by the EDF are at the forefront of the technological revolution, operating in key sectors that will define India’s future economy. These include the Internet of Things (IoT), Robotics, Drones, Autonomous Vehicles, HealthTech, Cybersecurity, and Artificial Intelligence and Machine Learning (AI/ML). By providing early-stage risk capital to these frontier areas, the EDF is effectively positioning India as a global hub for sophisticated technological innovation.

The Electronics Development Fund is more than just a source of capital; it is a vital pillar supporting India’s ambition for self-reliance. By strengthening domestic design and development capabilities and reducing the country’s dependency on imported components and technologies, the EDF is directly advancing the national goal of Aatmanirbhar Bharat (Self-Reliant India). It continues to lay a strong foundation for sustained technological growth, nurturing a vibrant entrepreneurial ecosystem that is essential for a future driven by innovation.