Three points you will get to know in this article:
• Local startup ecosystem raised $551 million since 2014
• Kerala leads in fostering hardware startups nationwide.
• Fintech and SaaS are pivotal in startup investments.
Kerala has gained commendation from the central government for its forward-looking approach to fostering and ensuring the continuous advancement of the startup ecosystem within the state. The state has actively taken various measures to achieve this, including innovative strategies like incorporating startup engagement in public procurement.
The National Deep Tech Startup Policy (NDTSP), formulated by the Office of the Principal Scientific Advisor to the Government of India, has duly acknowledged and applauded Kerala’s endeavors in this realm. This policy serves as a comprehensive framework designed to tackle the hurdles faced by deep tech startups and to introduce well-defined policy interventions that will augment the overall ecosystem.
Within this context, it is noteworthy that Kerala has taken proactive measures in the implementation of initiatives aimed at augmenting public procurement from startups. While the Indian government has been diligently working towards boosting startup involvement in public procurement, Kerala stands out for its proactive execution of this initiative.
The policy envisions the utilization of public procurement as a strategic tool to showcase the practicality and viability of deep tech products in the market. Many state governments have embraced this concept, recognizing the potential of public procurement as a marketplace for startups. Kerala, being one of these proactive states, demonstrates its commitment to fostering a conducive environment for startup growth and innovation.
In essence, Kerala’s proactive stance in cultivating a thriving startup ecosystem has garnered recognition at the national level, with its innovative approach to public procurement serving as a model for others to emulate.
‘Efficiently executed direct procurement for a startup’
It also noted that the Kerala government has strongly inducted and implemented the startup direct procurement for government departments and organisations. The proposed policy emphasizes the importance of these actions in fostering startup growth, considering their potential limitations in undertaking extensive contracts.
Consequently, prominent enterprises can opt for subcontracting specific project subcomponents, thereby seamlessly integrating startups into the overall value chain.
Relocations to startups
Adding to that, the other relaxations given to startups by the state are with regard to cooperation in public tenders, tender fees, earnest money deposit, prior experience and turnover, the draft policy noted.
The Government of Kerala has granted departments the authority to directly procure products from startups registered with the Kerala Startup Mission, for amounts up to ₹20 lakh excluding GST. This procurement can take place without undergoing a formal tendering process, pending approval by the technical committee.
Moreover, the Government of Kerala has authorized various entities such as departments, boards, PSUs, and corporations to acquire IT products valued at up to ₹100 lakh through a limited tender process, specifically open to startups registered under the Kerala Startup Mission.
It is important to note that the Kerala government’s efforts to bolster the startup ecosystem extend beyond the realm of public procurement, demonstrating a commitment to fostering a uniquely user-friendly and innovative environment.
Kerala’s proactive approach to nurturing its startup ecosystem has earned commendation from the central government and serves as a model for others. By embracing innovative strategies like startup engagement in public procurement and implementing the National Deep Tech Startup Policy, Kerala demonstrates its commitment to fostering growth and innovation. The state’s initiatives, such as direct procurement for startups and relaxed regulations, showcase its dedication to creating a user-friendly environment for startup success. Kerala’s efforts extend beyond public procurement, reflecting a comprehensive commitment to advancing its startup ecosystem.
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