In an era where government jobs are becoming increasingly scarce, the onus of generating employment opportunities has fallen squarely on the private sector.
The Jammu and Kashmir administration has taken a crucial step in this direction with the launch of its ambitious ‘New Startup Policy 2024-27’, envisioning the creation of 2000 startups by 2027 to address J&K’s employment challenges.
Lieutenant Governor Manoj Sinha unveiled the much-anticipated policy, hailing it as a “giant leap for startups and innovators” in Jammu and Kashmir.
The policy aims to establish the union territory as one of India’s leading startup ecosystems by 2027, fostering an environment conducive to entrepreneurship and job creation.
The administration has set its sights on nurturing a thriving startup ecosystem, with a comprehensive blueprint that includes establishing incubation centres, facilitating access to investors and funding, and providing a range of support services to budding entrepreneurs.
A key target under the policy is the establishment of at least 2000 new startups in Jammu and Kashmir over the next five years. To ensure these startups have access to the necessary capital, the administration has committed to setting up a Venture Capital Fund of Rs 250 crore, initially seeded with Rs 25 crore from the government’s coffers.
“The venture capital fund shall be managed professionally and shall attract funding from various market sources, such as angel investors, entrepreneurs, accelerators, incubators, and other funding entities, to reach a total fund value of Rs 250 crore,” the policy document states.
Furthermore, the government has decided to establish loan guarantee programmes to facilitate access to credit for eligible startups recognised by the Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) and the Department of Promotion of Industry and Internal Trade (DPIIT).
These startups will be able to avail loans under the Credit Guarantee Scheme for Startups, as per the rules and regulations laid down by the DPIIT.
Additionally, the policy provisions for seed funding of up to Rs 20 lakh, to be provided in four installments to startups recognised by JKEDI. This financial support is expected to play a crucial role in nurturing innovative ideas and fostering entrepreneurial growth.
To ensure effective implementation and monitoring, the administration has constituted a High-Level Empowered Committee (HLEC), chaired by the Chief Secretary. This 12-member committee will take necessary decisions to encourage innovation, modify startup policies, and issue guidelines as needed.
Complementing the HLEC’s efforts, a 10-member Startup Task Force, headed by the Administrative Secretary of the Industries and Commerce Department, has been established to monitor the policy’s implementation and the decisions made by the HLEC regularly.
As Jammu and Kashmir strives to establish itself as a leading startup ecosystem, the private sector’s role in generating employment opportunities has become paramount. The New Startup Policy 2024-27 represents a significant step towards empowering entrepreneurs, fostering innovation, and addressing the region’s employment challenges through the creation of a vibrant startup culture.