In a significant move to boost entrepreneurship in the union territory, the Jammu and Kashmir administration has given the nod to an innovative startup policy during an administrative council meeting chaired by Lieutenant General Manoj Sinha on Thursday, February 22. The ambitious plan aims to foster the growth of 2,000 startups in the region by 2027, setting the stage for a vibrant entrepreneurial ecosystem.

As part of the initiative, the administration will establish a venture capital (VC) fund with an initial infusion of INR 25 crore and a total outlay reaching INR 250 crore. The VC fund’s establishment will follow consultations with the UT’s department of finance, and the J&K Entrepreneurship Development Institute (JKEDI) will play a crucial role in facilitating land for startups, ensuring a seamless process.

Under this newly approved policy, the government will extend one-time seed funding support of up to INR 20 lakh for 25 startups annually. This financial assistance, provided in four equal instalments, will be available to startups recognized by JKEDI, the nodal agency for startups in the region. The cap of 25 startups per year is a strategic decision, balancing the available budget with the aim of effectively supporting a manageable number of startups.

The three-year Jammu and Kashmir Startup Policy, spanning from 2024 to 2027, allocates nearly INR 40 crore for budgetary support. The focus of the policy is on injecting seed capital into selected startups. To ensure successful implementation, a panel of key government officials will oversee the process, while both government and private entities, alongside high-net-worth individuals (HNIs), are poised to support aspiring entrepreneurs in establishing their ventures.

This initiative comes after more than three months of anticipation since Lieutenant General Manoj Sinha announced in October the impending drafting and notification of a new Jammu and Kashmir Startup Policy. The new policy will supersede the previous one unveiled in 2018 and reflects the administration’s commitment to stimulating entrepreneurship, creating job opportunities, and fostering economic growth in the region.

Jammu and Kashmir, currently home to 721 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), has been categorized as an ’emerging ecosystem’ in the recently released ‘States’ Startup Ranking 2022.’ Notably, the region’s authorities have emphasized its potential, particularly in the agritech sector. Union Minister Jitendra Singh highlighted in January 2024 that the UT is rapidly emerging as a prominent agritech startup hub in the country.