The government is planning to float a $1 billion self- sponsored fund to encourage the development of 'Made in India' technologies to boost local gear manufacturing. The proposal from the National Manufacturing Competitiveness Council is at present being examined by the Department of Telecommunications (DoT).

The proposed fund will provide equity to start-ups promoted by individuals of Indian origin on the condition that the product is developed and manufactured in India. Further, the fund will retain majority ownership in such start ups and be the final authority for decision making on all proposals related to management control.

The preferential market access (PMA) policy mandating a minimum 30 per cent local sourcing of telecom is limited to government contracts and the introduction of the fund will help boost local manufacturing in the private sector as well.