After the Centre government move to form a INR 1000 Cr fund to promote innovation among tech startups, its time for state government to play a mentor role to encourage them. Moving in line, the Karnataka government is all set to announce an exclusive fund for startups in the upcoming budget to be presented on March 13.
The state government has already started working on an ambitious plan to have at least 10,000 startups by 2023 and set up many new age incubators to promote student startups.
Speaking on the plans, the person familiar with the plans said, “We want to make Bangalore the global hub of innovation and startups. Modi-led government at the Centre has just announced formation of a INR 1,000 Cr fund for the purpose. With Bangalore leading the country in terms of number of startups, the thinking in the state is to set up our own fund of about 50 crore to 100 crore. The Chief Minister is expected to incorporate the suggestion in his budget.”
It is to be noted that CM Siddaramaiah has held a pre-budget meet with officials of IT, BT and Science and Technology departments and responded positively on announcing new incentives to encourage setting up of Electronic and Systems Design Manufacturing units.
Earlier in last year, the state government has also joined hands with IT industry body, Nasscom to launch one of Asia’s largest startup warehouse of 50,000 square feet in Bangalore. Nasscom already operates a startup warehouse in Bangalore, which is of around 9,000 sq ft. Besides, Nasscom has recently launched a 6,000 sq ft startup warehouse in Kolkata with a capacity of 60 seats.
In January 2013, Startup Village and the Kerala government launched an initiative called SVSquare. Under this initiative it selects promising young entrepreneurs from India every year and send them on an all-expense paid trip to the U.S. Startup Village aims to launch 1,000 technology startups over the next 10 years and start the search for the next billion-dollar Indian company.