In the past few articles, I have been talking about the measures; various states in India have taken to promote startups in their state. In an event that falls in line with that trend, the Government of Maharashtra has allocated Rs. 5,000 crores to seed fund the startups in that state. The fund was allocated by Maharashtra State Innovation Society, chaired by Minister for Skill Development, Sambhaji Patil Nilangekar. The Government is also planning to take the help of corporates in that state to seed fund the startups in the state. The states that already have policies to develop startups in their state include Kerala, Karnataka, Telangana, Seemandhra, Odisha, Bihar, Madhya Pradesh, Rajasthan, Delhi and Kashmir.
According to Nyoooz, if the startups are in their gestation period, which is taken to be ten years for startups in the social sector and biotechnology sectors, the startups will receive 100% waiver in stamp duty and registration for their first transaction and will have 50% waiver for their second transaction. The main intention of the Maharashtra Government or Maharashtra State Innovation Society behind the allocation of the fund for the startups is to create around five lakh jobs for the youth in the state by 2023. According to the state’s policy, funding of startups belonging to the biotechnology, information technology, clean energy, and artificial intelligence sectors would be prioritized. A portion of the Rs. 5,000 crores allocated for startups would be used to build around 15 incubators for the startups in the state.
Taking the help of corporates to seed fund startups would be a win-win situation for both the corporates and the startups in the state. The startups can get access to corporates’ capital and the corporates can make use of the startups’ innovative ideas in their businesses. Apart from the 15 incubators for the startups, the Maharashtra Government also plans to build around three world-class accelerators for the startups.
India is a land of youthful talent. There are many talented and hardworking youth in India who have started a business of their own and whose startups provide essential products or services to the society. If all the remaining states in India take cue from the above-mentioned states and launch schemes to fund, incubate and promote startups in their state, the startups in India will become MNCs and make India proud in the global stage.