SUMMARY
- The Karnataka state government is set to allocate Rs 25,000 monthly over a year to assist individuals who have chosen to leave their employment to venture into entrepreneurship.
- Karnataka IT-BT Minister Priyank Kharge made the announcement at the Moneycontrol Startup Conclave in Bengaluru on August 9.
- Kharge said that the state will fund startups and ensure they receive a pilot project within the government if they meet their standards.
The Karnataka state government is set to allocate Rs 25,000 monthly over a year to assist individuals who have chosen to leave their employment to venture into entrepreneurship.
Karnataka IT-BT Minister Priyank Kharge announced at the Moneycontrol Startup Conclave in Bengaluru on August 9, “We are soon launching an entrepreneurship programme, perhaps the first of its kind in the country, where if someone has quit their job to become an entrepreneur, we will pay a stipend of Rs 25,000 per month for a year. It’s a small amount considering the high inflation, but at least we will ensure that domestic expenses are taken care of.”
Karge emphasized the popularity of the Karnataka state government’s Elevate initiative, describing it as “the most cherished scheme for startups.”
Moreover, if startups are registered with the Karnataka state government and have participated and emerged triumphant in the Elevate initiative, the state government will be their first customers, according to Kharge.
In his budget proposal for 2024-25, the Karnataka Chief Minister Siddaramaiah announced the launch of the Rajiv Gandhi Entrepreneurship Programme (RGEP). The IT-BT department officials mentioned that the RGEP is built for young entrepreneurs with a background in science or engineering, offering them a monthly allowance of Rs 25,000 for a year, integrated with support from K-tech innovation hubs.
Kharge noted that entrepreneurs from various states have registered their businesses in Karnataka to benefit from this nurturing environment for. He added “Bengaluru didn’t become the world’s fourth-largest technology cluster overnight. We evolved from being primarily a hub for back-office operations and IT-enabled services to becoming a leader in research and development. This progress has fueled significant innovations and inventions. Karnataka ranks number 1 in the Innovation Index, and we are the top state in service exports.”
Additionally, the state has formed the Global Innovation Alliance with 32 nations, establishing dedicated pathways for startups registered with the Karnataka government to secure market access overseas. For example, startups have established operations in Germany, Australia, and Belgium.
The minister stated that they are in the process of creating sector-specific pathways for startups, including an AI corridor with San Francisco as a sister city to Bengaluru. “No other state government is willing to undertake such risks for startups. We are already doing so, and more importantly, we are providing opportunities.”
Kharge went on to add, “The theme of Moneycontrol’s Startup Conclave is ‘Persist, Reset, and Rebuild.’ The Karnataka government is aligned with this theme. We are committed to our policies, ready to reset our support for businesses and employment generation, and fully prepared to rebuild. Our aim is to foster an environment where everyone has the chance to become an entrepreneur.” said Kharge.
Kharge said that no other state government holds as many conclaves as Karnataka. “By November, we will be hosting Bengaluru Tech Summit, Social Innovation Summit, Urban Solutions Summit, Clean Water Summit, and Circular Economy Summit. These summits will focus on real-life problems that are plaguing the government. We are looking for disruptors, like startups, who will accept the government’s challenges—whether it’s portability of water, mobility, solid waste management, or process automation within governance.”
Kharge stated, “If we find a solution that meets our standards, we will fund startups and ensure they receive a pilot project within the government. No other state government offers such a comprehensive 360-degree solution for startups.”
He also mentioned the public procurement policy aimed at making the government the initial client for startups in disruptive technologies.
