THIRUVANANTHAPURAM: Kerala Finance Minister K.N. Balagopal said on Tuesday that startups play a critical role in the state's economy since their innovative ideas can lead to significant growth in a variety of industries.
"Startups are a significant component of the Kerala economy," he said after inaugurating the Business to Government (B2G) summit, organised by Kerala Startup Mission (KSUM) as a platform for startups to showcase a wide range of products and services required by government departments and public sector undertakings (PSUs).
Startups can also make a vital contribution to the expansion of all key sectors, such as healthcare and animal husbandry." "The governemnt intends to raise the limit on purchases of startup products and services. Startup items and services costing up to Rs 20 lakh can now be purchased immediately, but those costing between Rs 20 lakh and Rs 1 crore must go through a limited tender procedure. The government intends to raise the limit on limited tenders from Rs 1 crore to Rs 3 crore, the finance minister said.
Citing the economic tumult in Sri Lanka, he said the trouble faced by the island nation is a reminder of the necessity for developing a strong local economy since a reverse trend of globalisation is taking place currently.
He stated that businesses must learn to expand beyond their early success, and that the government has a responsibility to assist entrepreneurs with new ideas. Apart from the Rs 250 crore set up for the Venture Capital Fund, another Rs 97 crore has been made out in the budget for startups, he said. The Kerala government's focal agency for entrepreneurship development and incubation initiatives is KSUM.
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