Sunrise sectors include artificial intelligence, geospatial systems (drones), semiconductors, spacetech, genomics, green energy and cleantech
The draft industrial policy will incentivise these sectors with subsidy on investment and fixed capital, indirect tax reimbursement from the state’s portion and apprenticeship incentives
It will be released in January 2023 and will be effective from April 1, 2023
The government of Kerala has unveiled the draft industrial policy where the State will focus on its strengths and foster investments in sunrise sectors. The draft also added that it will focus on upskilling opportunities for the youth, on the sectors that will bring the fourth industrial revolution and improve the inflow of sustainable investments in Kerala’s startup ecosystem.
Kerala’s minister for industries, law and coir, P Rajeeve said the new policy would be shared with stakeholders for inputs in 10 days. It will be released in January 2023 and will be effective from April 1, 2023.
The Centre, during the Union Budget 2022-23 classified artificial intelligence, geospatial systems (drones), semiconductors, spacetech, genomics, green energy and cleantech (EV) among the sunrise sectors in the country.
Kerala’s draft industrial policy will incentivise these sectors with subsidy on investment and fixed capital, indirect tax reimbursement from the state’s portion and apprenticeship incentives to foster entrepreneurship and enable investments within the State.
Overview Of The Startup Ecosystem In ‘God’s Own Country’
According to government data, Kerala-based startups claim to have bagged over $93 Mn in equity investments and INR 8.4 Cr in direct government procurement. Overall, the State is home to more than 3,100 startups and 40 incubators.
Time and again Kerala has proved to be one of those states focussing on infrastructure-heavy innovation. The Indian startup ecosystem is dominated by software startups but the State has been a hub for IoT and hardware-focussed startups. It was also one of the first States to introduce a startup-oriented policy back in 2014.
According to Inc42’s 2021 report on Kerala’s startup ecosystem, the State had over 80 hardware startups. It also boasted 230+ technical colleges whose entrepreneurship cells were training over 10K future entrepreneurs.
It also houses the ‘The Maker Village’ – a joint venture between the Centre’s IT Ministry, the State government and the Kerala Startup Mission (KSUM), making it a hotbed for electronics/hardware and EV startups in the country. Prominent startups from the State include deeptech Agrima Infotech, biotech Zaara, robotics startups Genrobotics, ASIMoV Robotics and Sastra, among others.
In June 2022, the State also set up an INR 250 Cr venture capital fund for fostering startups’ growth in the state.
