Budget opens up new avenues for startups: KSUM

Trivandrum / February 5, 2024

Thiruvananthapuram, Feb. 05:  The state budget for 2024-25 has proposed a slew of growth-oriented measures that will further strengthen Kerala’s flourishing startup ecosystem by opening up vast opportunities for startups.

The budget, presented by Finance Minister Shri K N Balagopal in the Kerala Assembly today, made an allocation of Rs 90.52 crore to step up activities of the Kerala Startup Mission (KSUM), the nodal agency for entrepreneurship development in the state.

Of this, Rs 70. 52 crore is meant for various youth entrepreneurship development projects and Rs 20 crore for setting up the Technology Innovation Zone at KINFRA Hi Tech Park at Kalamassery.

Highlighting the success of the Fund of Funds scheme to accelerate startup investment, the budget made a provision of Rs 20 crore for the scheme. An amount of Rs 46.10 crore was made for the scheme previously, whose investment value has grown 3.9 times.

The budget also earmarked Rs 10 crore for extending LEAP centres cross the state that will provide working space for small groups of IT professionals.

Apart from allocations to KSUM and its projects, a raft of measures proposed by the Finance Minister for the development of Kerala’s digital ecosystem will have a positive impact on the startup domain.

The proposal to convene an international AI conclave in July promises a big exposure to startups in this cutting-edge domain. Startups will also benefit from the proposal to hold a round table to prepare an action plan to make Kerala a robotic hub, he said.

Similarly, the proposal to provide assistance to entrepreneurs in digital entertainment including Animation, Visual effects, Gaming and Comics (AVGC) will open up a vast arena before the fledgling tech firms.

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