The Karnataka government is gearing up to roll out new sector-based booster kits for startups in the state within the next month. Priyank Kharge, the IT/BT Minister, shared with The Hindu that these new kits are designed to be more practical and tailored to specific sectors, aiming to address the unique needs and challenges faced by startups.
Kharge highlighted the government’s efforts to understand the requirements of different sectors. For instance, in biotech startups, scaling up is the primary challenge after the proof of concept stage, while for robotics startups, tie-ups with organizations like ARTPARK could be beneficial. The government is engaging with various sectors to identify specific ways to support startups effectively.
The existing startup Karnataka booster kit, launched in 2016, offers software tools, cloud credits, mentorship, access to incubators and government funding, as well as legal and financial consultancy services. Kharge emphasized that the new kits are a result of ongoing discussions with startups to understand their evolving needs.
In response to the current funding environment, Kharge mentioned the government’s collaboration with venture capitalists (VCs) to develop strategies that add more value to startups. The government is also working on a framework to reduce the number of startup failures and promote their success through initiatives like the ELEVATE program.
The ELEVATE program, which recently closed for applications, received significant interest, indicating the enthusiasm among startups for such initiatives. Additionally, the government is keen on collaborating with startups to address urban infrastructure and mobility challenges, planning an urban solutions summit to facilitate these discussions.
Kharge criticized the central government for imposing high angel tax, which he believes hinders innovation and startup growth in India. He urged the central government to ease these policies to support initiatives like Startup India and promote innovation within the country.
