Here’s how government-led initiatives are propelling startup growth in Rajasthan

Reaffirming its commitment to fostering a thriving entrepreneurial ecosystem, iStart Rajasthan has entered the Animation, Visual Effects, Gaming, and Comics (AVGC) industry with the government’s latest Budget for 2024-25. 

Establishing facilities statewide exclusively for the purpose, Amit Purohit, Program Manager, iStart Rajasthan, said, “The state government is executing four hubs in key cities in the name of Atal Innovation Studios and Accelerators, and has allocated Rs 1,000 crore to set up the infrastructure and provide capacity building support for startups, media professionals, and SMEs in this space.” 

Purohit, who was speaking at a fireside chat session during TechSparks 2024 in Bengaluru, discussed how youth-centric initiatives are aimed to nurture young talent in cutting-edge technologies.

“We aim to train and empower 50,000 youth over the next few years, specifically in the space of AVGC. We are doubling down our focus on capacity building – whether it's on AI, animation, video, graphics, gaming, coding and robotics,” he said.

 Rajasthan emerged as one of the ‘Top Performers’ earlier this year in the Department for Promotion of Industry and Internal Trade (DPIIT)-initiated States’ Startup Ranking Framework for 2022. With a 35% year-on-year increase in the number of startups in the last fiscal year, the state is leading the way in supporting a vibrant entrepreneurial environment. 

“The growth rate is only set to increase because we have just physically executed our 66 launchpads. In every district school and district college, the initiative has its own incubator, its own manpower, and its own programme,” Purohit said.

The initiative is trying to create a platform where any startup can leverage the value chain of the government through in-built infrastructure and add layers of innovation within the programme. 

Launched in 2017, Rajasthan’s flagship programme aims to support startups through funding, mentoring and incubation. To date, iStart has supported nearly 5,000 startups with many more to rise by the end of the year.  

Purohit asserted that Rajasthan is the first state to amend the Procurement Act, where any startup is entitled to get work orders up to the tune of minimum Rs 75 lakh per financial year solely by nomination, without requiring them to submit an ‘expression of interest’ or ‘request for proposal’.

He also invited the audience to the Rising Rajasthan Global Investment Summit 2024 scheduled for December in Jaipur. 

Purohit said Rajasthan has a very different perspective to investment promotion. “Unlike conventional startup policies which mandate startups to be registered in a particular state, Rajasthan only requires them to have a sales office and not a registered office to avail of the policy benefits – whether it's funding, infrastructure support, capacity building, outreach support, travel exposure visits, and even leveraging the procurement benefits of the programme,” he said. 

He was also quick to note that Rajasthan was one of the first states to execute digital effectiveness in government schemes, pointing to the state’s implementation of direct benefit transfers back in 2015. 

“It gives me immense pride to see how most government schemes today in Rajasthan are running on an AI engine, where you don't have to touch base with any government officer. All the basic processes have become enhanced with the advent of digital solutions, ecommerce, and innovative technologies adopted by the government,” he said.

Sharing his experience in working in the government, Purohit said, “While it's a process-oriented environment, it's still very person-centric.”