Economic Undertakings

Startups are a vital component of Kerala’s economy, says Finance Minister KN Balagopal

Thiruvananthapuram: Kerala Finance Minister KN Balagopal said on Tuesday that startups play a major role in boosting the economy of the state as leveraging their innovative ideas can lead to remarkable growth in various sectors .

In his remarks after the inauguration of the Business to Government (B2G) Summit, organized by Kerala Startup Mission (KSUM), as a platform for startups to showcase a wide range of products and services required by government departments and businesses Public Sector (PSU), he said, “Startups are a vital component of Kerala’s economy.

“Startups can also contribute enormously to the growth of all key sectors, including healthcare and animal husbandry.”

“The government is planning to raise the ceiling for purchasing products and services from startups. Now, startup products and services up to Rs 20 lakh can be purchased outright and those costing Rs 20 lakh to Rs 1 crore can be procured through a limited tender process. The government plans to raise the cap on limited tenders from Rs 1 crore to Rs 3 crore,” Balagopal added.

Citing the economic turmoil in Sri Lanka, he said the difficulties faced by the island nation are a reminder of the need to develop a strong local economy as a reverse trend of globalization is taking place.

He stressed that startups must learn to grow beyond their initial success and that the government has a duty to help startups come up with innovative ideas. About Rs 97 crore has been set aside in the budget for startups apart from Rs 250 crore as venture capital funds, he said.

KSUM is the nodal agency of the Government of Kerala for entrepreneurship development and incubation activities in the state.