To boost the startup ecosystem in Jammu and Kashmir, the administration has drafted a new startup policy, which is expected to be notified within a month, Lieutenant Governor Manoj Sinha said.
The new policy will provide a roadmap for nurturing innovation, creating jobs, and driving economic growth in the region that has previously witnessed political unrest for more than three decades, Sinha said.
“Startups recognised by the J&K government will receive one-time seed funding assistance of up to Rs 20 lakh disbursed in four equal instalments. The government will grant capital assistance to establish or scale up incubator and accelerator infrastructure in J&K, providing up to Rs 50 lakh per incubator,” he said.
Sinha added that the primary motive is to ensure the presence of at least one incubator in every district. The policy will also facilitate the growth of untapped cutting-edge sectors in the region.
Vikramjit Singh, commissioner secretary Industries & commerce J&K, told Moneycontrol, “There was already a startup policy launched in 2018 but during five years a lot has changed in the startup sector and therefore the policy was revised and updated accordingly”.
The new startup policy has been sent to various departments for comments after which it will be sent to the administrative council for approval, he said.
Amid the unemployment crisis in the region, the government has claimed that more than 600 startups were registered in the Valley after the launch of the 2018 startup policy.
According to entrepreneurs, Kashmir has a huge potential for startups and with that abundant resources are also available in the region.
In July last year, J&K emerged as a top performer among UTs and north-eastern states in the ranking of states on support to startup ecosystems, according to the Union government.
Rs 50,000 crore opportunity
Ishfaq Mir, co-founder of Kashmir Box, an e-commerce startup, told Moneycontrol that some of the main potential areas having significant growth prospects include e-commerce, agri-tech, fintech, logistics, arts and culture, tourism, and health.
"These key sectors not only present a staggering target market of over Rs 50,000 crore waiting to be tapped, but some sectors also require timely intervention. For instance, the artisans' sector is grappling with challenges and requires adapting to modern times and ensuring a sustainable livelihood for craftsmen,” Mir said.
To unlock the Rs 50,000 crore opportunity, another entrepreneur Muheet Mehraj, who started LaunchPad J&K, an initiative to facilitate entrepreneurs in the region, said a lot of steps are being taken through LaunchPad, such as community building exercise, setting up a fund and providing a structured incubation and acceleration facility for startups.
“I have seen a growing interest for startups in Kashmir and the youth in the Valley have both passion and perseverance for startups. Only last week more than 600-700 aspiring entrepreneurs reached us for the startup conclave in Srinagar,” Mehraj told Moneycontrol.
Kashmir’s first-ever startup conclave was recently organised by the two Kashmir-based startups Fastbeetle and Kashmir Box in collaboration with the Department of Industries and Commerce, Kashmir at Sher-e-Kashmir International Convention Centre (SKICC) on the banks of Dal Lake in the city.
Reducing unemployment
According to Mir, there is a huge potential for doing business in Kashmir and startups can foster economic growth in the region.
For example, he said, the startups can utilise the abundant human capital available, help local unemployed youth get jobs and become one of the driving forces for the economic growth in Kashmir.
The 2022 survey conducted by J&K’s Department of Employment revealed that UT has more than 6.63 lakh educated youth who are looking for jobs. Both government and entrepreneurs believe that startups can absorb educated youth, which can help in reducing unemployment.
Mir said the major problem startups in Kashmir currently face is a lack of funding. For example, he said angel funding, a lifeline for many startups worldwide, is still in its nascent stages in the Union Territory and the concept remains largely unfamiliar to the local populace.
Singh, however, said the government is currently focusing on helping startups come to the level where they would able to get funding from investors across the country.
Incubator infrastructure
Irtif Lone, a startup expert in Kashmir, told Moneycontrol that the government is setting up a large number of incubators across educational institutions and seed money in favour of startups is also being planned. But there is also a need to bring in angel networks and venture capital firms through successful business houses and create alternate investment options for the startups, particularly based on the scaling-up projections, he said.
“Mentoring by startup founders is also equally vital for startups,” Lone said.
An official at J&K Entrepreneurship Development Institute (JKEDI) told Moneycontrol that the new startup policy can boost the startup ecosystem in Kashmir. “There was a startup policy before as well but it was not implemented. A good startup policy is necessary mainly when a large number of youngsters are creating startups and providing jobs to unemployed youth.”
Apart from the startup policy, budding entrepreneurs can get support and mentorship under the government's comprehensive startup assistance programme. “To grow the startup ecosystems in J&K, the government is collaborating with Startup India, angel investor networks, financial institutions, and premier institutes. We are also going to allocate a carpet area of 11,200 square feet of built spaces at competitive prices at Rangreth for IT, ITeS and tech startup sectors. Also, the surplus spaces at JKEDI will now be made available to startups,” the LG said.
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