Union Finance Minister Arun Jaitley’s budget proposal to allocate an additional Rs. 1,000 crore for start-ups is expected to give a boost to the start-up ecosystem in the city.
According to IT industry body Nasscom, Bengaluru contributes 28 per cent of the total start-up activity in the country.
Mr. Jaitley also announced alternative initiatives wherein start-ups can raise more capital to fund the growth.
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He said, “We also have to encourage and grow the spirit of entrepreneurship in India and support new start-ups. Thus can our youth turn from being job-seekers to job creators.”
In July last, Mr. Jaitley announced Rs. 10,000 crore for the start-up ecosystem.
The government also announced Atal Innovation Mission and earmarked Rs. 150 crore for the innovation promotion platform involving academics, entrepreneurs, and researchers.
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‘Seeing the shift’
On the new announcements, Sharad Sharma, co-founder of start-up Think iSPIRT, said, “The government certainly sees a shift in the IT industry in India towards software product start-ups.”
The announcements have brought cheer to many young entrepreneurs in city. However, many said the previous budget proposals were yet to be implemented.
Alan D’Souza, CEO of a Bengaluru-based start-up, Vavia Technologies, said, “The government, rather than announcing additional funds, needs to focus on how utilisation of such funds have impacted job creation and later announce additional support for the same.”
‘Utilisation is key’
Saurabh Srivastava, co-founder of Indian Angel Network, which invests in early stage start-ups, said, “The proposal on Rs. 1,000 crore for incubation is good but a lot will depend on its utilisation.”
The city contributes 28 p.c. of the total
start-up activity
in the country