New startup policy launched in J&K, focus to set up 2,000 startups by 2027

The newly launched “New Jammu & Kashmir Start-up Policy- 2024-27” signifies a major step forward for J&K. This policy outlines a comprehensive framework to empower aspiring entrepreneurs and propel the region towards becoming a thriving startup hub. Let’s delve deeper into this policy and explore the government’s multifaceted role in its success.

In Short:

• J&K’s new startup policy aims to establish 2,000 startups by 2027.
• The government will set up a Venture Capital Fund of Rs. 250 Crores.
• The policy provides entrepreneurship facilities to students and women.

Key Highlights of the New J&K Startup Policy

Ambitious Goal

Establish 2,000 startups in J&K by 2027.

Comprehensive Support System

Financial aid, mentorship, infrastructure, and regulatory ease for startups.

Rs. 250 Crore Venture Capital Fund

Provides crucial financial support to recognized startups.

Focus on Sustainability

Prioritizes quality over quantity for long-term economic growth.

Empowering Women Entrepreneurs

Supports women-led startups, fostering inclusivity..

Government Role in this New Startup Policy

Venture Capital Fund: The government’s Rs. 250 Crore Venture Capital Fund, with an initial infusion of Rs. 25 Crores, provides crucial seed funding to promising startups. This demonstrates their commitment to nurturing innovation and entrepreneurship in the region.

Supportive Ecosystem: The policy facilitates the establishment of incubation centers, seed funding, and additional support for startups working in diverse fields.

What is a Venture Capital Fund?

A Venture Capital Fund is a pooled investment vehicle that invests in startups and small businesses with high growth potential. These investments are generally characterized as high-risk/high-return opportunities. The fund is typically managed by a venture capital firm, and the investors are usually institutions or high-net-worth individuals. The aim is to achieve above-average returns despite the risk.

Registered Start-Ups In J&K

As of March 4, 2024, Jammu & Kashmir boasts 722 registered startups, demonstrating a thriving entrepreneurial spirit. These startups operate across diverse sectors, with the leading areas being:

• Construction & Engineering (49%)
• Skill Development (12%)
• Oil & Gas Transportation (12%)
• IT Consulting (8%)
• Business Support Services (7%)
• Food Processing (6%)
• Agri-Tech (5%)

Interestingly, J&K also fosters gender inclusivity, with a notable 254 women-led startups, paving the way for a more diverse and vibrant startup ecosystem.

How to Access the Venture Capital Fund

For DPIIT-recognized startups, applying for seed funding involves the following steps:

Step 1: Determine Your Business Valuation

Understand the value of your business in the current market.

Step 2: Determine How Much Capital You Need

Calculate the amount of funding required to achieve your business goals.

Step 3: Find the Right Venture Capitalists

Identify venture capitalists that align with your startup’s mission.

Step 4: Prepare an Executive Summary & Business Plan

Create a detailed business plan and an executive summary that highlights your business model, market analysis, and financial projections.

Step 5: Apply for the Scheme

The DPIIT-recognized startup can apply through the official Startup India Portal. Click on the ‘Apply Now’ button and proceed with ‘Apply Now’ for startups.

Step 6: Negotiate Your Terms

Once you have received interest from a venture capitalist, negotiate the terms of the investment.

Step 7: Prepare for Due Diligence

Be ready for a thorough examination of every aspect of your business.

Impact on the Local Economy

The new policy is expected to significantly impact the J&K economy by:

Stimulating Innovation: Encouraging the development of new ideas and solutions.

Creating Jobs: Fostering new businesses and employment opportunities.

Driving Economic Growth: Contributing to the region’s economic development.

Conclusion

The J&K Startup Policy signifies a proactive approach towards fostering innovation and entrepreneurship in the Union Territory. By offering a comprehensive support system and addressing potential challenges, the government aims to create a fertile ground for startups to flourish. The success of this policy has the potential to transform J&K’s economic landscape and empower its citizens to contribute to a brighter future.

FAQs

What is the startup ecosystem in Jammu and Kashmir?

The startup ecosystem in J&K comprises local versions of national players like Ola, Uber, Amazon, Flipkart, and Zomato. It also includes over 100 technology-based startups registered with DPIIT/Startup India working across sectors.

Which business is most profitable in Jammu and Kashmir?

Some of the most profitable businesses in J&K include the horticulture business, handicraft business, and fisheries business. Silk textiles, fabric and woolen textiles, woods industries, agro-based industries, and paper-making are also prominent industries.

Can I become a part of the Jammu & Kashmir Start-up Policy for free?

Yes, you can become a part of the J&K Start-up Policy without any initial cost.

Who is eligible for the J&K Startup Policy?

Any individual or entity fulfilling the criteria outlined in the policy can apply.