In a State of Competition: Startup Hubs and Ecosystems
Indian states are now competing with each other to create their own startup hubs and ecosystems. Chief Ministers don't want to be left out and want to prove themselves to be better than the others.
Economic Times reports that even as the Centre is working on its own national-level policy to boost the startup ecosystem, over half-a-dozen state governments are scrambling to come up with their own sets of incentives to lure these new businesses into making regional centres their hubs. While Karnataka - the hub of technology and new-age businesses - is about to release its policy over the next month or so; and Andhra Pradesh and Rajasthan have been the first states to unveil their policy statements, Uttar Pradesh, Telangana, Tamil Nadu and West Bengal are the latest to join the bandwagon. According to officials in the know, states have reached out to stakeholders for inputs and have started conversations to draft policies.
While the intent may be noble, experts argue that just doling out incentives may not be enough to attract startups. Governments should instead look at addressing deeper issues such as physical infrastructure, taxation and labour in order to make a real contribution to the ecosystem, they say. A UP official confirmed to ET that the Akhilesh Yadav government has started preliminary discussions on a startup policy. "It is definitely an idea and should start taking shape soon... The state is seized of the need to facilitate an environment and provide enabling infrastructure so that startups can flourish," said the official.