"I have a great idea for a new product but have no funds. Is there any MSME scheme that can help me realise this idea and grow as a business?" — An enthusiastic young fellow asked me this question a few months ago, and it will come as no surprise for you to learn what I replied, "There isn't any". In India, there has always remained a big, very big gap between government support and industry innovation. Funds and quick effective support can make a critical difference to success when faced with challenges of innovating, but finding this is just next to impossible for us, till now.

But recently the National Innovation Council in its third annual report has informed that it is in the final stages of launching the 'India Inclusive Innovation Fund' for welfare of the Indian micro, small and medium enterprises (MSMEs). Speaking at the event, President Pranab Mukherjee said that the fund would back creative new solutions to developmental challenges — projects that improve quality of life for the poor. "Many innovative ideas suffer due to lack of funding options. This fund, through appropriate structure, will ensure that this does not happen in India any more," he said.

Some of the points mentioned in the council's 'Report to the People' on the proposed MSME innovation fund sound really good. First of all, it says the fund is built on the principle that innovative enterprise can profitably, scalably, and competitively engage citizens at the bottom of the economic pyramid and help them transform their lives for the better. The fund also proposes to invest in a new generation of Indian entrepreneurs who will focus on the problems of the poor, without compromising on economic success of their business.

The report also mentions that the innovation fund aims at supporting investment at different stages of the enterprise development cycle — from early stages, through later phases of scaling-up of potentially successful solutions and business models, and it will propose to seek capital from a range of sources: seed fund contributions from the government and its agencies; contributions from various Indian public sector enterprises, banks, and so forth; and contributions from private investors, corporates and investment firms.

Some of these talks, particularly those on 'inclusive growth' and 'growth and equitability' might sound a little bit lofty, but when we take this development — the first of its kind — as the first step, however small it is, towards creating a better environment for innovation for the industry — including the cash-strapped MSMEs in our country — we certainly have a reason to feel elated. But the future of the 'India Inclusive Innovation Fund' will largely depend on support and commitment of the government. Otherwise, this one too will remain on paper only.

I invite your feedback.