Kerala Startup community welcomes Rs. 1,000 crore Budget bonanza

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Trivandrum: The Startup community in Kerala, especially the Technology start-ups, have welcomed the Union Finance Minister’s announcement of Rs. 1,000 crores fund for supporting the start-up environment in the Budget for 2015-16.

While presenting the Budget in the Lok Sabha today, Shri Arun Jaitley said, “India has a well regarded and world-class IT industry with revenues of about US$ 150 billion, over US$ 100 billion of exports, employing nearly 40 lakh people directly. We are now seeing a growing interest in start-ups. Experimenting in cutting edge technologies, creating value out of ideas and initiatives and converting them into scalable enterprises and businesses is at the core of our strategy for engaging our youth and for inclusive and sustainable growth of the country. Concerns such as a more liberal system of raising global capital, incubation facilities in our Centres of Excellence, funding for seed capital and growth, and ease of Doing Business etc. need to be addressed to create lakh of jobs and hundreds of billion dollars in value.”

“With this objective, Government is establishing a mechanism to be known as SETU (Self-Employment and Talent Utilisation). SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start-up businesses, and other self-employment activities, particularly in technology-driven areas. I am setting aside Rs. 1,000 crore initially in NITI Aayog for this purpose”, he added.

In a statement, Sanjay Vijayakumar Chairman of the Kochi based Startup Village said the SETU programme would give a fillip to incubation of startups, especially in the technology sector. Rs. 150 crore for Atal Innovation Mission (AIM) to create world class innovation labs would increase budgetary flow to incubators and seed funds for start-ups, thereby accelerating job creation in the software sector.

“These announcements are significant as availability of funds has been a major stumbling block for early stage start-ups. It will have a positive impact on fostering a culture of entrepreneurship. The proposal to introduce a uniform bankruptcy code would encourage more youths to take up entrepreneurship as this policy would create a clear mechanism to address business failures, which is one of the most challenging scenarios that the startups in the IT-internet-telecom sector are facing”, he added.

Anil Philip
Kerala IT News

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