These states have launched startup policies to give fillip to the ecosystem
While only four states had startup policies before the Startup India policy was announced, more than 18 states have launched policies and schemes thereafter. There are a total of 21 states and Union Territories with startup policies now in place. We take a quick look at the states that launched schemes this year.
The Centre launched the Startup India Policy in January 2016 with the aim of building a strong ecosystem to promote startups and entrepreneurs across the country. While the startup narrative was largely dictated by cities such as Bengaluru, Delhi-NCR, Mumbai, Chennai, Hyderabad and Pune, startups are now emerging in smaller cities too, including unlikely such as Shillong, Imphal, Srinagar and Panjim.
The Department of Industrial Policy and Promotion (DIPP) reveals the total number of startups registered with the Startup India Hub stands at 2,46,665 across India. While 12,867 have been recognised by the government, 129 have received funding from the government’s fund.
This year, a few more states have come out with policies specifically designed to harness the potential of startups. These states have laid out the groundwork in terms of policy framework and the incentives being offered.
Uttarakhand
Uttarakhand, known for its tourism, formally launched its startup policy in February 2018. As part of its new policy, it has angel investors, incubators, etc. in place and a council to monitor the progress of these startups.
Some of the key highlights of the State government’s policy include a monthly allowance of Rs 10,000 for each startup, marketing assistance of up to Rs 5 lakh and exemption from stamp duty, which is beneficial while acquiring premises for an office.
What really stands out in Uttarakhand’s startup policy is the sops it offers to startups that are keen on filing patents, whether in India or abroad.
The state’s key focus areas for startups are travel, tourism, food processing, agriculture, education, healthcare, biotech and pharma.
Maharashtra
India’s industrial powerhouse and the state that contributes nearly 15 percent of India’s GDP, Maharashtra also came out all guns blazing in terms of its ambition for the startups.
The state unveiled its startup policy in May this year and has set targets for the next five years, with plans to develop 15 incubators.
The policy plans to attract Rs 5,000 crore of investment, facilitate the incorporation of 10,000 startups and create employment opportunities - both direct and indirect - for five lakh people.
The state is offering a slew of incentives for the startups that include lightening the regulatory framework for these businesses (in terms of self-certification), easier norms of procurement, patent filing assistance, etc. The Maharashtra government does not see its capital Mumbai as the key startup hub as it is also keen to promote other locations such as Pune, Nashik, Aurangabad and Nagpur, with each city having its own area of expertise.
Meghalaya
One of the seven sisters in the Northeastern region in the country, Meghalaya has also jumped on the bandwagon with the launch of its startup policy in August this year.
The policy states, “It is high time the state place its weight behind this culture of entrepreneurship to synergise the energy and innovative potential of the youth of Meghalaya. This startup policy shall act as a catalyst in the economic growth of Meghalaya creating models for scalability and replicability across the state resulting in large scale employment opportunities.”
The state plans to create an enabling environment and supporting ecosystem that facilitates at least 500 startups in the next five years.
Towards this end, the Meghalaya government will be providing both fiscal and non-fiscal incentives. Among the fiscal incentives planned are GST reimbursement, stamp duty reimbursement, digital upgradation subsidy, lease rental reimbursement, power subsidy, etc.
Among the key non-fiscal incentives, it plans to provide market access in terms of government procurement where 20 percent should be procured from these firms.
Manipur
Although Manipur formulated its startup policy way back in 2016, the real boost came for this segment this year. It officially launched the startup conclave in August this year with a financial allocation of Rs 150 crore for the next five years.
The policy states, “It is high time the state places its weight behind this culture of entrepreneurship to synergise the energy and innovation potential of the youth of today’s Manipur.”
The policy has identified four stages for the startups - idea stage, product development, commercial development and expansion.
At each of these stages, the Manipur government will provide various kinds of fiscal and non-fiscal incentives. It also plans to create a network of entrepreneurship development centres and also assist in creating business incubation centres, to give a boost to the startups.
At the state’s startup conclave this year, of the total 334 firms that participated, 29 were selected at the revenue stage, 200 were selected under the idea stage and 105 were shortlisted for the entrepreneur support scheme.
Jammu and Kashmir
The state of Jammu and Kashmir, which has witnessed considerable amount of internal strife for decades, has now come out with a startup policy. The J&K Startup Policy 2018 was approved by the State Administrative Council in the month of September.
The state, which is rich in natural resources and has a strong handicraft industry, is looking to promote entrepreneurship. The incentives provided under the policy include a monthly allowance of Rs 12,000 for a period of one year during the incubation period.
Also, recognised startups will receive a one-time assistance of Rs 12 lakh for product research and development. The state government has also made amendments to its Seed Capital Fund Scheme and Youth Startup Loan Scheme to enhance the limits on the disbursal of the amount.
Goa
The top tourist destination of the country, Goa now aims to be among the top 25 startup destinations in Asia. Though the state formulated its policy in 2017, the real rollout began only this year, with the launch of the startup policy in April.
The Goa government will be providing various incentives such as IT infrastructure reimbursements of Rs 1 lakh per quarter to startups, which is the maximum permissible limit.
The state also plans to encourage 100 early-stage ventures to succeed in the next five years. It has created an internet-based single window portal exclusively for startups as well as a startup promotion cell.
The Goa government is also providing several capital incentives in terms of R&D expenses and salary expenses when they hire local talent, etc. The startup policy has also promised to expand base of digital talent in the state.
