In a positive sign amid COVID19 lockdown in 2020, Jammu and Kashmir witnessed a registration of 64 start-ups which is the highest number of units established since the launch of Startup India scheme by Prime Minister Narendra Modi in 2016.
As per the official figures, 64 new startups were registered by the Jammu and Kashmir government which is higher than the number it has recorded previously. In 2018 and 2017, 47 and 15 startups had come up in Jammu and Kashmir with most of them associated with the hospitality sector. The year 2016 recorded a lesser number of start-ups as only two units were registered by the department of industries. In 2021, till February 25 startups have been registered.
Startup India, a flagship initiative of the Government of India was launched on January 16, 2016. The initiative aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive to growth of startups. Since the launch of Startup India initiative, a total of 44,534 Startups has been recognised by DPIIT as on 24th February 2021.
In Jammu and Kashmir, 191 startups have been registered so far, ranking the union territory at 21th number in the list of states with maximum startups.
A senior Industries and Commerce department official said that “it is an encouraging sign that new starts up coming up in Jammu and Kashmir. It has become possible mainly by the investor friendly policies of the J&K government.”
To enable the start-up ecosystem and create awareness, outreach and scouting of start-ups, www.startupjk.com has also been launched by the Jammu and Kashmir administration with focus on sectors food processing, agriculture, renewable energy, handicrafts and handloom.
According to official documents, an entity shall be considered as a Startup: Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation. Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.