Review Time: Govt Asks 5 States To Share Their Action Plan To Boost Startup Ecosystem

Aiming at the success of ‘Startup India Action Plan’, the government has asked five states to share the policies and initiatives taken by them to boost startups during the last one year.

The five states which include Gujarat, Telangana, Karnataka, Rajasthan and Kerala, have been invited by the government in the first states conference on the Startup India initiative. A senior official close to the development said that these five states will present the work they have done for the startup ecosystem, as a learning for  the other states.

The official said, “We are laying stress on increasing engagement between the startup stakeholders. Many issues have to be dealt at the state level and, hence, they need to be far more pro-active.”

The state officials will also provide an update on the progress made on the action plan and work done on easing labour and environment laws for startups such as easing the regulatory burden and exempting from inspection for three years under the labour laws.

The conference is being organized by the Department of Industrial Policy and Promotion (DIPP) that will also have the five states share funding models for startups and details of reforms on the anvil. The department has been engaging with the state governments in building incubation capacities for young entrepreneurs, since PM Narendra Modi kicked off the ‘Startup India, Standup India’ campaign in January this year.

DIPP has also set up an inter-ministerial board to verify the eligibility of startups opting to avail tax and IPR-related benefits.

The government is aiming to boost the startup ecosystem in India and encourage the young entrepreneurs. Just two days back, the government announced plans to set up an incubation cell at the Indian Institute of Foreign Trade (IIFT) to help startups expand their business in the international markets. Last month, the government also approved the INR 10, 000 Cr corpus of ‘Fund of Funds for Startups’ in line with the ‘Startup India Action Plan’.

State Announcement Related To the Startups

• In March, Karnataka Chief Minister, Siddaramaiah, announced that the government will set up four technology business incubators across the state in 2016-17. The state government had also set up the Karnataka Semiconductor Venture Fund with $15 Mn (INR 100 Cr) corpus to provide venture capital to chip companies.
• The Karnataka government had also announced to come up with a startup booster kit to help companies register their startups with Karnataka Biotechnology and Information Technology Services (KBITS).
• In April this year, Jharkhand’s Director of State industries, K Ravikumar, had planned to create a $15 Mn (INR 100 Cr.) venture fund for startups.
• In February, Uttar Pradesh Government proposed $15 Mn (INR 100 Cr.) corpus.
• In May 2014, Odisha Government deployed a VC fund of $15 Mn (INR 100 Cr.) to seed fund MSME sector startups.

The development was first reported by ET.

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