Finance Minister K.N. Balagopal has emphasised on the need for infrastructure development and enhanced connectivity that are crucial factors in maintaining a healthy startup ecosystem in the State.
Expressing concern over the economic turmoil in Sri Lanka, he also called for reviving focus on boosting the production sectors of the State to ensure that the local economy remained on a sound footing.
He was inaugurating the Public Procurement Summit 2022, a business-to-government (B2G) conclave, organised by the Kerala Startup Mission (KSUM) for startups to showcase their products to government departments and PSUs here on Tuesday.
Mr. Balagopal said startups have a major role in strengthening the State’s economy and leveraging their innovative ideas could lead to remarkable growth in various sectors. Startups have potential in scaling up agriculture and other production areas through value-addition. Healthcare and animal husbandry are other sectors that could witness immense growth through innovation.
According to him, the government has set its sights on investing heavily in basic infrastructure. An amount of ₹1.30 lakh crore will be utilised for national highway development during the next five years. Such initiatives are vital in boosting production in the State, he said.
Public procurement from startups had been formalised by the Kerala State IT Policy of 2017 that mandated government to become an early adopter of promising technology startups in the State. The procurement scheme has facilitated 135 procurements worth over ₹12 crore from startups
Mr. Balagopal said the government is mulling over raising the ceiling on purchase of startup products. Currently, startup products and services that cost up to ₹20 lakh can be directly procured, while those costing between ₹20 lakh and ₹1 crore will have to be purchased through a limited tender process. The government is considering a proposal to raise the limit of purchase through tender to ₹3 crore.
General Administration Department principal secretary K.R Jyothilal, who chaired the inaugural session, said the State is fast becoming the startup capital of the country and held immense potential in clean tech and health tech sectors. He also advocated a liberal approach in extending financial aid to startups.
KSUM chief executive officer John M. Thomas also spoke. Senior bureaucrats delivered presentations on critical sectors at the event.
