Bengaluru is already on the global map of startup ecosystem and now the entire state is earning recognition on a national level. In a remarkable feat for the southern state, Karnataka has been ranked the 'Best Performer' in the Government of India's States' Startup Ranking-2021. Karnataka has earned the honour for developing a strong startup ecosystem in the state through holistic and inclusive policies for sector-focused incentives, regulatory sandboxes, and supporting innovation in disruptive sectors.
Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, released the ranking in New Delhi. Twenty-four states and seven Union Territories participated in the third Start-up ranking exercise with seven reform areas and 26 action points.
Karnataka was awarded the 'Best Performer' category in the rankings for launching engineering research and development policy to attract sector-focused incentives, creating regulatory sandboxes for startups to avail exemption from state and municipal laws and developing modernistic policies to support innovation in disruptive sectors. The acknowledgement was celebrated and applauded.
"Great news! Namma Karnataka startups lead the way. we are now declared as one of the best performers for our startup ecosystem in the @DPIITGoI States' Startup Ranking - 2021," Dr Ashwathnarayan C.N., Minister for Higher Education, IT & BT, Science & Technology; Skill Development, Entrepreneurship & Livelihood, said in a series of tweets. The portfolios that the minister holds represent as the nodal department for startups in Karnataka.
"Karnataka - Best Performer state in the #SRF2021 On behalf of Karnataka's start-up ecosystem contributors, participants and our @Startup_Kar Department, I thank Government of India for bestowing this recognition on our State," he added.
Dr Ashwathnarayan further shared details of what comes next for the state of Karnataka in order to keep the momentum going. He said that the aim is to attract Rs 5,000 crore worth of investments and create more than 43,000 new jobs.
"To facilitate the expansion of ESDM manufacturing in Karnataka, we will offer a 'Scheme of Special Incentives for ESDM Sector' complementing the Centre's NPE 2019 and SPECS, PLI & EMC 2.0 schemes," he explained.
Karnataka, a perfect home for startups
Karnataka is recognised as an innovative leader, a procurement forerunner, a capacity building pioneer and a funding leader. Rightly so, the state is home to over 4,000 registered startups. The Karnataka Startup Policy 2015-2020 has been designed to create a world-class startup ecosystem in the State through strategic investment and policy interventions, leveraging the robust innovation climate in the state.
Karnataka government has introduced various startups to facilitate growth and ease of doing business. Women Entrepreneurship Edge, Karnataka Innovation Society, Innovation Labs Programme and Startup Genome - Government of Karnataka Collaboration, are a few initiatives that yielded positive results.
The state government, as recent as 2020, introduced many schemes to support startups in multiple sectors. From Karnataka Electric Bike Taxi Scheme to Karnataka Innovation Authority Act 2020 and Engineering Research and Development, new policies have provided fiscal and non-fiscal incentives to startups. Bengaluru Tech Summit is a prime example of the state's focus on supporting startups. The government has supported startups in more ways than one, including and not limited to funding as grants, acceleration programs, workshops and mentorship.
