Delhi's Draft Industrial Policy Proposes Incentives for AI, Fintech
To support cutting-edge digital services like AI and fintech, the Delhi government has released a draft Industrial Policy 2025–2035 that calls for the establishment of a Rs 400 crore venture capital fund and the reimbursement of Rs 50 crore in capital investments.
To create job prospects, the draft focuses on investing in frontier tech services such as AI, big data, banking, financial services and insurance (BFSI), gaming, animation, biotech, IT, and iT-enabled services.
According to the draft document, the IT and ITeS sector's economic contribution to Delhi has significantly decreased as a result of the lack of commercial office space.
The government seeks to increase the number of large office spaces available, provide reliable power and transportation, and support active research and development efforts in cutting-edge technology, the statement stated.
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Based to the report, the main fiscal incentives suggested to draw investments to the frontier tech industry are 50% fixed capital investment reimbursement (including land) for companies operating in the sector over a five-year period, up to a project's maximum of Rs 50 crore.
A six percent annual interest subsidy for the first five years, 100 percent reimbursement of State GST for five years, 100 percent reimbursement for patent filing up to Rs 5 lakh per patent, and 50 percent exemption from wheeling and transmission fees as well as interstate power purchase fees are also included.
Additionally, the draft policy suggests creating an industry venture capital fund of Rs 400 crore.
A 'Delhi Frontier Tech Services Cell' is one of the greenfield interventions suggested by the government to promote frontier tech services.
Furthermore, it recommends leveraging Delhi Skill and Entrepreneurship University's Rozgar Bazaar, establishing plug-and-play IT parks through public-private partnerships, and bolstering the ecosystem of intellectual property rights by expediting patent applications.
For the growth of the frontier tech services sector, the government has designated industrial areas at Baprola, Ranikhera, and Kanjhawala.
The proposed strategy aims to promote a "future-ready, non-polluting industrial ecosystem in Delhi by promoting high value, innovation-driven sectors."
The draft strategy calls for increasing outreach within academic and research institutions, providing R&D with Rs 10 lakh in support, and establishing a site to showcase current R&D capabilities, infrastructure, and funding.
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Other interventions suggested in the draft policy included the creation of small research and innovation clusters for technological advancements, the adoption of best practices and idea sharing, cooperation between the public and private sectors for capacity building and training, the creation of new grants, and the redesign of existing grants.
The proposal states that the Industries department will carry out the policy and organize the distribution of the incentives to different sectors. An 'inter-Departmental Committee' will advise the Cabinet on the approval of incentives in different industries.