As part of its Budget 2023–24 announcements, the Karnataka government made a number of incentives for entrepreneurs in the state public on Friday, July 7.
Chief Minister Siddaramiah suggested spending INR 50 Cr. to establish an incubation institute called INNOVERSE in his budget address. The complex will house numerous cutting-edge amenities and support regional startups. A grant of INR 10 Cr has been set aside in the budget for this purpose this year.
In addition, INR 1 Cr has been set aside in the current fiscal year for the ‘Propel’ project, which aims to accelerate the adoption of solutions developed by state-funded companies. The overall project cost will be around INR 5 crore.
The budget also offers INR 1 Cr seed money for its ‘GIA-MAP’ (Global Innovation Alliance-Market Access Programme). A total of INR 3 Cr has been set up for the effort. GIA-MAP, which was launched in 2019, is anticipated to assist startups in entering new markets, establishing international collaborations, and increasing global sales.
Siddaramiah introduced an INR 4 lakh insurance policy for gig workers in the state when presenting the budget. Under the new declaration, the government would pay the entire price, and gig workers will be able to acquire a life insurance cover of INR 2 Lakh as well as an accidental cover of INR 2 Lakh.
Furthermore, the state would establish a center of excellence in MedTech and healthtech at a cost of INR 50 crore. In the Budget 2023-24, an initial amount of INR 10 Cr has been set aside as part of this.
A new technology transfer organization (TTO) will also be established in the state, allowing new-age incubation facilities to engage in technology transfer. The current budget has authorized a grant of INR 1 Cr to be built at a total cost of INR 4 Cr.
The budget also includes funding for the establishment of a wireless and wired technology center using the private-public partnership (PPP) model. To be erected at a cost of roughly INR 25 Cr, the government has allocated INR 5 Cr in this year’s budget.
The Karnataka State Research Foundation (KSRF) was also proposed in the budget to efficiently monitor and evaluate the implementation of the Karnataka Research, Development, and Innovation Policy.
The perks could be useful for the startup hub, which has been stymied by the financial winter. While the announcements provide some relief, it has to be seen whether they reach the grassroots level.
