Trivandrum: The Thiruvananthapuram based Kerala Startup Mission and Kochi based Startup Village, both organisations promoting start-ups in Kerala, have welcomed the government’s allocation of more than Rs. 200 crores in the 2016-17 Budget for various schemes aimed at strengthening the startup ecosystem, saying it is the biggest amount set aside to promote youth entrepreneurship in the State’s history.
“The fact that it exceeds the combined allocation of Rs. 163.29 crores to Kerala’s flagship IT Parks – Technopark, Infopark and Cyberpark – is an indicator of how much value the growing wave of entrepreneurship has added to Kerala’s society and economy; and also the potential of young people here”, said Sanjay Vijayakumar, Chairman, Startup Village.
Meanwhile, the Group of Technology Companies (GTech), the industry body of IT & ITeS companies in Government owned IT Parks in Kerala, has called the budget short-sighted and disappointing. Even as there is a marginal increase in the allocation of funds, the budget lacks creative recommendations to drive the accelerated growth of the industry here.
“The government should realise the importance of attracting IT corporations who can create employment opportunities in large volumes. No IT major has made a significant investment in Kerala in the past four years, which is extremely alarming. The current budget does not address this, and this approach could prove detrimental in the longer term”, said Anoop Ambika, Secretary, GTech.
The continued emphasis on entrepreneurship development and industry academia collaboration is a welcome move. Allocation towards the Technology Innovation Zone and Knowledge City are steps in the positive direction. However, there is a need to ensure sustainable entrepreneurship.
“It is important to ensure the growth of existing IT services and product companies. The industry has been proposing creative ways of marketing Kerala based companies in the international markets, to help them grow to the next level. However the budget has turned a blind eye on the proposals”, says Binu Jacob, Convenor, GTech.
It may be recalled that Chief Minister Shri Oommen Chandy has provided a total outlay of Rs. 482.87 crores for developing Information Technology and e-Governance in the State in his government’s Budget for 2016-17.
Kerala Biz News