Karnataka To Launch Preferential Public Procurement Policy To Help Startups

The Karnataka government is likely to soon unveil a preferential public procurement policy with a focus on buying products and services from startups to boost the startup ecosystem in the state. 

Speaking at the Big Tech Show, organised by the Karnataka government in Mysuru, the state’s IT-BT minister Priyank Kharge said that besides the sector-specific ease of doing business initiatives, the government is now working on the development of a preferential public procurement policy.

“This policy will ensure government support for startups with unique intellectual property registered through our startup cell and actively involved in ‘Beyond Bengaluru’ initiatives,” a Moneycontrol report quoted Kharge as saying.

Kharge said that the state government itself can become the first customer under the policy, facilitating procurement of products and services from startups with unique intellectual property

The event was organised by the Karnataka Digital Economy Mission (KDEM) at the Infosys campus in Mysuru, as the city is being positioned as one of the emerging global hubs for the cybersecurity and semiconductor sectors, including Electronics System Design and Manufacturing (ESDM).

According to Kharge, Karnataka being home to one-third of India’s tech talent, the government is committed to support the ecosystem. Currently, the state has over 25,000 startups, of which 15,000 startups are receiving government support. 

“For the first time in the country, we have established a Skill Advisory Council for emerging technologies to provide the skills that our nation needs,” he said. 

Commenting on the government’s commitment to nurture the tech ecosystem of the state, Kharge highlighted that the state has dedicated Centers of Excellence in IoT, cybersecurity, data science, AI, semiconductor fab, aerospace, robotics, and animation. 

Further, by the end of the year, the state is poised to have more such centres of excellence to boost the fintech, manufacturing, wireless products, gaming, health science sector among others. The centres will be led by industry experts and help accelerate inventions and innovations.

Additionally, the Karnataka government is planning to partner with nearly 50 countries by 2024 for the development of a Global Innovation Alliance. This initiative is aimed at enabling the startups in the state to get access to the global market and collaborate with companies in other countries. With this partnership, the government also wants to open new economic corridors for the state’s startups including the cybersecurity corridor and the marine biotech corridor.

The measures are part of the Karnataka government’s efforts to nurture more startups in the state, particularly beyond Bengaluru. Last month, Kharge said the government has a sector-based strategy to develop the startup ecosystem in other cities and regions of the state.

In September, while addressing the Global Fintech Fest 2023, Kharge said that the state is working on a fintech programme to unite the government, venture capital and banking sector. Under this, the government will set up centres of excellence to focus on nurturing talent, leadership, entrepreneurship and fostering innovation.