Daikin India Joins Hands with DPIIT to Boost Startup-Led Innovation

In the midst of rising temperatures, energy demands, and urgent climate action, a powerful shift is underway—one that places Indian startups at the center of green innovation. In a landmark move that could redefine the roadmap for hardware and manufacturing startups in the cooling sector, Daikin Airconditioning India Pvt. Ltd. has inked a strategic partnership with the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India.

This collaboration isn’t just another corporate MoU. It signals the coming together of two forces: a global air-conditioning powerhouse and a national vision to empower Indian innovators in climate-smart technology.

Daikin-DPIIT - What’s the Big Idea Behind the Partnership?

At its core, the agreement aims to nurture product-centric Indian startups working in key areas like:

• Energy optimization

• Climate-resilient technologies

• Cooling innovations tailored for rural India

While the air-conditioning industry has long been dominated by established players, the need of the hour is innovation that is not just efficient but also sustainable and localized. That’s where this partnership steps in—to bridge the gap between market-ready climate solutions and early-stage manufacturing talent.

Daikin India has committed to offering mentorship, pilot project support, and technical incubation to startups that align with these priorities. The initiative will focus on creating an ecosystem where young Indian companies can thrive with the right backing—technically and commercially.

The Cooling Sector’s Startup Moment

India's air-conditioning market is booming, with growth projections estimating exponential demand—both in urban metros and rural hinterlands. As access to modern amenities becomes more equitable, the need for low-cost, energy-efficient, and sustainable cooling becomes non-negotiable.

“India’s air-conditioning market is poised for robust growth, and this partnership is a timely step to empower Indian startups that are driving innovation in climate tech and localized manufacturing,” the DPIIT said in a statement.

This sentiment finds resonance with the ‘Make in India’ and ‘Startup India’ campaigns, which have consistently pushed for the development of resilient, self-sustaining, and globally competitive manufacturing ecosystems.

For hardware startups in the cooling and climate tech space—traditionally sidelined by software-dominated startup narratives—this partnership could be a game changer.

Why This Partnership Matters

This is not the first time a multinational has joined hands with the Indian government to support local innovation. But Daikin’s focused attention on hardware-led manufacturing startups, particularly in an essential and under-tapped segment like cooling, makes it especially significant.

Let’s look at what makes this collaboration unique:

• Bringing Deep Expertise to the Table: As a 100% subsidiary of Japan’s Daikin Industries Ltd., Daikin India brings decades of global experience and cutting-edge R&D in the HVAC (heating, ventilation, and air-conditioning) space.

• From Pilot to Product: Startups often struggle to move from idea to scale due to lack of access to real-world testing and market pilots. Daikin’s involvement can give these innovators access to live environments, customer feedback loops, and possibly even procurement opportunities.

• Focus on Rural Innovation: In a country where rural India is still underserved in terms of reliable and affordable cooling solutions, this initiative puts much-needed spotlight on rural-first innovations. These could range from solar-powered cooling devices to low-GWP (Global Warming Potential) refrigerant systems tailored for low-energy usage.

• Building the Climate-Tech Value Chain: With the climate-tech sector gradually finding its footing in India, this kind of government-industry collaboration adds muscle to the value chain. From concept to commercialization, such partnerships could provide the missing links.

The Larger Context: Climate Urgency Meets Startup Energy

Climate change isn’t knocking at the door—it’s already in. From heatwaves in Delhi to water crises in Bengaluru, India is experiencing the brunt of global warming. Cooling is no longer a luxury; it’s a climate necessity. Yet, the solutions can’t come at the cost of increased carbon footprints.

This is where climate-conscious cooling startups—working on green refrigerants, off-grid cooling, and efficient energy management systems—have a crucial role to play. And with the backing of industry leaders like Daikin and policymakers from DPIIT, they now have the ecosystem to experiment, grow, and scale.

This move is also expected to create ripple effects across related sectors like electronics, clean energy, smart manufacturing, and IoT, fostering a broader innovation culture around sustainable infrastructure.

What’s Next for Startups?

If you’re a startup innovating in climate cooling, rural tech, or green manufacturing, this could be your moment. While the full details of selection criteria and engagement models are yet to be rolled out, DPIIT’s involvement suggests a structured and transparent approach.

We can also expect further announcements in terms of:

• Calls for applications and startup cohorts

• Industry roundtables and mentoring sessions

• Pilots for product validation

• Opportunities for co-development and possible procurement

The Daikin-DPIIT collaboration isn’t just about air-conditioning. It’s about building a cooler, greener, and more startup-driven India. It opens up a vital corridor between global industrial knowledge and Indian grassroots innovation.

As India aspires to become a global manufacturing hub and lead the charge in climate action, such partnerships serve as crucial proof points. The next big idea in cooling may well come from a small lab in Bengaluru or a workshop in Pune—with Daikin’s lab doors and DPIIT’s policy windows wide open to help it succeed.