India’s electronics sector has witnessed significant transformation in recent years, emerging as a global hub for electronics design and manufacturing. To support this growth and foster innovation, the Government of India launched the Electronics Development Fund (EDF) on February 15, 2016. The fund aims to promote research, development, and entrepreneurship in electronics, nano-electronics, and information technology.
The EDF functions as a Fund of Funds, investing in professionally managed Daughter Funds such as early-stage angel and venture funds. These Daughter Funds provide risk capital to startups and companies developing advanced technologies, helping build a self-sustaining electronics ecosystem that encourages product design and intellectual property creation in India.
The EDF is designed to create a strong foundation for innovation and research in the electronics and IT sectors. It supports funds that invest in startups, encourages the development of new products and technologies, strengthens domestic design capabilities, builds a national intellectual property base, and facilitates strategic acquisitions to reduce import dependence and promote self-reliance.
The fund operates through a professionally managed framework to ensure efficient investment and innovation. Key stakeholders include the Ministry of Electronics and Information Technology as the anchor investor, Canara Bank as trustee and sponsor, and Canbank Venture Capital Funds Ltd. as the investment manager. Each Daughter Fund is registered in India and complies with applicable regulations, ensuring transparency and alignment with EDF’s objectives. Participation is generally on a minority and non-exclusive basis, allowing greater private investment and professional fund management.
As of September 30, 2025, the EDF has invested 257.77 crore in eight Daughter Funds, which have subsequently invested 1,335.77 crore across 128 startups. The supported companies operate in sectors including Internet of Things, robotics, drones, autonomous vehicles, HealthTech, cybersecurity, and artificial intelligence and machine learning, generating over 23,600 jobs and creating or acquiring 368 intellectual properties. Daughter Funds have exited 37 investments, generating cumulative returns of 173.88 crore.
The Electronics Development Fund has played a pivotal role in nurturing innovation and entrepreneurship in India’s electronics and IT sectors. By providing risk capital and promoting intellectual property creation, it has helped build a vibrant, self-reliant electronics ecosystem and strengthened the foundation for sustained technological growth in the country.
