Content

1. Electronics Development Fund
2. EXERCISE GARUDA 25

Electronics Development Fund

Why in News?

• PIB reported that the Electronics Development Fund has invested ₹257.77 crore in 8 Daughter Funds, enabling ₹1,335.77 crore downstream investments into 128 startups.
• EDF-supported startups have created 23,600+ high-tech jobs and generated 368 Intellectual Properties (IPs) as of 30 September 2025.

Relevance :

GS-III: Economy & S&T

• Boosts semiconductor, ESDM, AI, robotics, cybersecurity innovation.
• Strengthens R&D, IP creation, design-led manufacturing.
• Addresses deep-tech funding gaps and reduces electronics import dependence.

GS-III: Government Policies

• Case study of Fund-of-Funds model, public–private investment mobilisation.
• Supports Digital India, Make in India, Atmanirbhar Bharat.

GS-II/III: Development & Security

• Enables strategic tech capabilities (drones, AI, cybersecurity).
• High-value job creation and startup ecosystem strengthening.

What is the Electronics Development Fund (EDF)?

• Launched in February 2016 by MeitY to create a “Fund of Funds” model for electronics, nano-electronics, and IT innovation.
• Objective: Build India’s Electronics System Design & Manufacturing (ESDM) ecosystem through risk capital for technology startups.
• Structure: Government invests in Daughter Funds → These invest in startups developing deep-tech products and IPs.

Strategic Objectives (Conceptual Foundation)

• Strengthen Innovation & R&D – Promote domestic capability in electronics and advanced technologies.
• Support Venture/AIF Funds – Provide anchor capital to Category I & II SEBI-regulated Alternative Investment Funds.
• Foster Indigenous Product Development – Promote IP creation and reduce import dependence.
• Enhance Domestic Design Ecosystem – Promote local ESDM design for strategic and commercial sectors.
• Enable Strategic Tech Acquisition – Encourage purchase/acquisition of critical foreign technologies.
• Build National IP Pool – Strengthen India’s IP ownership in frontier tech.

Operational Framework (How EDF Works)

• Institutional Architecture
  • Anchor Investor: Ministry of Electronics & IT (MeitY)
  • Trustee & Sponsor: Canara Bank
  • Investment Manager: Canbank Venture Capital Funds Ltd.
• Key Features
  • Functions as a Fund of Funds; invests indirectly through Daughter Funds.
  • Maintains minority participation, catalysing large private-sector co-investments.
  • Daughter Funds must be SEBI-registered Category I/II AIFs.
  • Daughter Fund managers have autonomy in investment decisions.
  • EDF covers the entire electronics/IT value chain, from hardware design to deep tech startups.
  • Selection of Daughter Funds based on strict due diligence.

Performance & Achievements (Data-Driven Analysis)

Financial Footprint

• Total EDF Investment: ₹257.77 crore
• Total Downstream Investment by Daughter Funds: ₹1,335.77 crore
• Leverage Ratio: For every ₹1 invested by EDF → ~₹5.18 mobilised in the ecosystem.

Startup-Level Outcomes

• Total Startups Supported: 128
• Job Creation: 23,600+ jobs
• Intellectual Properties Generated: 368 IPs
• Exits: 37 exits
• Cumulative Returns to EDF: ₹173.88 crore

Priority Sectors Supported

• IoT
• Robotics
• Drones
• Autonomous Vehicles
• HealthTech
• AI/ML
• Cybersecurity
• Semiconductor & Embedded Systems

Overview

Relevance to Electronics Manufacturing & Digital Economy

• EDF plugs India’s early-stage funding gap in deep tech.
• Critical to India’s semiconductor and design-led manufacturing goals.
• Aligns with Make in India, Digital India, and Atmanirbhar Bharat.

Economic & Strategic Significance

• Reduces import dependence on critical electronics (India’s annual imports >$70 bn historically).
• Boosts domestic design, raising India’s share in global electronics value chains.
• Strengthens strategic tech sectors (AI, robotics, cybersecurity, drones) important for national security.

Policy & Governance Evaluation

• Minority participation model ensures market efficiency and avoids micromanagement.
• Fund-of-Funds design mitigates risk and creates multipliers in private funding.
• Transparent SEBI-regulated structure improves investor confidence.

Challenges / Limitations

• Financing gap persists for hardware-heavy startups with long gestation periods.
• India still lacks large-scale deep-tech venture capital depth compared to US/China.
• Scaling from prototype to commercial production remains challenging for ESDM.

Future Imperatives

• Increase EDF corpus aligned with semiconductor strategy.
• Deeper linkages with academia (IITs, IIITs) and R&D labs.
• Integration with Production Linked Incentive (PLI) schemes.
• Strengthen exit ecosystem (IPOs, strategic acquisitions).

Conclusion

• The Electronics Development Fund is a key pillar in India’s shift from electronics assembly to electronics design leadership.
• Its Fund-of-Funds model has successfully mobilised private capital, supported deep-tech startups, created high-value IP, and strengthened India’s innovation ecosystem.
• EDF now occupies a strategic position in India’s long-term tech self-reliance and semiconductor roadmap.

EXERCISE GARUDA 25

 Why in News?

• PIB announced India’s participation in Exercise Garuda 25, the 8th edition of the bilateral air exercise with the French Air and Space Force (FASF), held at Mont-de-Marsan, France (16–27 Nov 2025).
• IAF deployed Su-30MKI fighters, supported by C-17 Globemaster III and IL-78 flight refuellers.

Relevance :

GS-II: International Relations

• Key pillar of India–France defence partnership.
• Defence diplomacy tool; strengthens Indo-Pacific alignment.

GS-III: Defence & Internal Security

• Enhances IAF interoperability, BVR/EW capability, multi-domain readiness.
• Improves preparedness for high-intensity and coalition operations.

What is Exercise GARUDA?

• Bilateral air exercise between the Indian Air Force (IAF) and the French Air & Space Force (FASF).
• Launched in 2003 as part of expanding India–France strategic defence cooperation.
• Hosted alternately in India and France.
• Among the longest-running IAF international air exercises.

Key Features of GARUDA 25 (2025 Edition)

• Host: France (Mont-de-Marsan Air Base).
• Date: 16–27 November 2025.
• IAF Deployment: Su-30MKI; C-17 for strategic airlift; IL-78 for mid-air refuelling.
• French Deployment: Rafale (F3R), Mirage-2000 variants, support aircraft.
• Exercise Scenarios:
  • Advanced air combat
  • Air defence and joint strike missions
  • Multi-domain coordination
  • Complex BVR and EW settings

Objectives (Strategic & Tactical)

• Strengthen interoperability with a major strategic partner.
• Exposure to advanced NATO-aligned air combat doctrines.
• Training in air superiority, joint strike, and defensive counter-air ops.
• Enhance long-range strike capability through IL-78 refuelling support.
• Increase personnel exchanges and operational best-practice sharing.

Operational Significance

• Enables Su-30MKI to engage with European multirole fighters in realistic contested airspace.
• Supports IAF’s transition towards network-centric, multi-domain operations.
• Boosts proficiency in BVR combat, EW tactics, and mixed fighter package ops.
• Enhances joint planning and execution of combined air campaigns.

India–France Defence Cooperation Context

• France is a long-term defence partner (Mirage-2000 → Rafale).
• Part of the tri-service exercise framework: Varuna (Navy), Shakti (Army), Garuda (Air).
• Strong alignment on Indo-Pacific priorities including maritime security and open sea lanes.

Broader Strategic Context

• Fits India’s push for high-end military exercises with trusted partners.
• Improves preparedness for high-intensity combat and coalition operations.
• Supports indigenisation by validating domestic systems in multinational settings.
• Enhances defence diplomacy, especially with European strategic actors.
• Strengthens capability for long-duration missions in contested operations.

Significance for the Indian Air Force

• Improves operational readiness through realistic multinational scenarios.
• Enhances Dissimilar Air Combat Training (DACT) exposure for pilots.
• Strengthens interoperability for future UN/multilateral contingencies.
• Contributes to IAF’s evolving combat doctrine and integrated air defence architecture.

Past Editions at a Glance

• Conducted in: 2003, 2006, 2010, 2014, 2019, 2022, 2023/24, 2025.
• Venues included Istres (France), Jodhpur (India), and Mont-de-Marsan (France).
• Progression from basic DACT to full-spectrum, multi-domain combat simulations.