Thiruvananthapuram –February 6, 2024: In a bid to invigorate the local startup ecosystem, the Kerala government has earmarked INR 90.52 Cr in the state’s Budget for 2024-25. The allocation includes INR 20 Cr for establishing a ‘Technology Innovation Zone’ in Kochi, with the remainder dedicated to youth entrepreneurship development programs under the ‘Kerala Startup Mission.’
In addition, the government has committed an extra INR 30 Cr to expedite startup investments through its Fund of Funds scheme. Kerala’s Finance Minister, KN Balagopal, highlighted that the scheme has received INR 46.10 Cr to date, experiencing a 3.9X growth in investment value.
The Announcement for Startups:
Balagopal announced an additional INR 6 Cr for the ‘Innovation Acceleration Scheme’ to support startup initiatives. Moreover, INR 10 Cr has been allocated to expand the state’s coworking centres, LEAP. The minister also revealed plans for the Kerala Startup Mission to establish work pods catering to entrepreneurs from other states.
“The Startup Mission was able to generate 50,000 job opportunities in the state and raise INR 5,500 Cr as investments to startups via venture capital funding,” said Balagopal, expressing optimism about the state’s startup ecosystem, which has surpassed 5,000 registered startups. He mentioned that SaaS giant Zoho’s new campus at Kottarakkara will contribute to startup growth and job creation.
Balagopal acknowledged the challenges faced by traditional retailers due to the rise of e-commerce platforms. In response, he proposed the formation of groups comprising local retailers to collectively address challenges such as bulk purchasing, supply chain management, logistics, and inventory management. The minister emphasized leveraging digital technology, modern management techniques, and artificial intelligence with support from universities and management institutions.
These initiatives follow the recent proposal by the Kerala government for a comprehensive policy focusing on AVGC-XR (animation, visual effects, gaming, comics, and extended reality). The draft policy is set to be disclosed soon to gather feedback from industry stakeholders.
This strategic allocation in the budget underscores the government’s commitment to fostering innovation, entrepreneurship, and sustainable growth in the startup ecosystem, contributing to Kerala’s emergence as a vibrant hub for emerging businesses.
