A bold step towards fostering a vibrant startup ecosystem and embracing the challenges of the digital age head-on.
The Kerala government unveiled a series of measures and incentives in its Budget for 2024-25, announced on Monday (February 5), aimed at fostering the local startup ecosystem and driving entrepreneurship in the state.
A significant portion of the budget, amounting to INR 90.52 Cr, has been earmarked for the ‘Kerala Startup Mission’ to bolster startups across the state. Of this allocation, INR 20 Cr is dedicated to establishing a ‘Technology Innovation Zone’ in Kochi, with the remainder allocated for youth entrepreneurship development programs.
Furthermore, the government has pledged an additional INR 30 Cr to accelerate startup investments through its Fund of Funds scheme. Finance Minister KN Balagopal highlighted that INR 46.10 Cr has already been allocated for the scheme, with investments witnessing a remarkable 3.9X growth.
To further support startup initiatives, an additional INR 6 Cr has been allocated for the ‘Innovation Acceleration Scheme’ in this year’s Budget. Additionally, INR 10 Cr has been set aside for expanding coworking centers, LEAP, across the state.
Balagopal also announced plans for the Kerala Startup Mission to establish work pods catering to entrepreneurs from other states, aiming to create a conducive environment for startup growth and collaboration.
Underlining the success of the Startup Mission, Minister Balagopal highlighted its role in generating 50,000 job opportunities and raising INR 5,500 Cr in investments through venture capital funding.
With the startup ecosystem thriving, Balagopal expressed optimism, noting that the number of startups registered in the state has surpassed the 5,000-mark. He also praised SaaS giant Zoho’s new campus at Kottarakkara for its potential to further fuel startup growth and job creation.
Addressing challenges faced by traditional retailers amidst the rise of ecommerce platforms, Balagopal proposed the formation of groups comprising local retailers to collectively address the challenge. He emphasized leveraging digital technology, modern management techniques, and artificial intelligence to support traditional retailers in adapting to the evolving retail landscape.
These measures come in the wake of the Kerala government’s proposal to formulate a comprehensive policy for AVGC-XR (animation, visual effects, gaming, comics, and extended reality), aimed at further bolstering the state’s vibrant creative industry sector. The draft policy is set to be unveiled soon for feedback from industry stakeholders, underscoring Kerala’s commitment to nurturing innovation and entrepreneurship across diverse sectors.
