Kashmir Startups Submit Growth Plan Ahead of Budget Session
As Jammu & Kashmir prepares for its upcoming budget session, a comprehensive blueprint has been presented to the government with the goal of transforming the region’s startup ecosystem into a catalyst for economic growth.
The detailed document, submitted by Kashmir Angel Network, an investment group based in Srinagar, reflects insights gathered from 19 local startup founders. It outlines strategic recommendations to address longstanding challenges that have hindered innovation in the valley.
According to the report, the startup ecosystem in Kashmir has reached a pivotal moment. It has evolved from a mere collection of ideas to a burgeoning community of revenue-generating enterprises poised for expansion.
Many of the startups surveyed have progressed beyond the ideation phase and are now operating in early or mid-commercial stages. While these businesses are generating revenue, they encounter difficulties in securing working capital. Half of the startups are self-funded, while mid-stage companies face significant funding gaps. This stage is referred to as the “Valley of Death,” where startups have established product-market fit but lack the resources to scale effectively.
Across various sectors, digital services and education account for 25% of the startups, while hospitality, tourism, agriculture, and emerging fields such as drones and 3D printing make up the remainder.
The report highlights three primary obstacles to growth. Firstly, access to capital is identified as a key concern. Founders express the need for risk-tolerant, founder-friendly funding options as opposed to conventional bank loans.
Secondly, regulatory challenges pose a significant barrier. Three-quarters of founders point to the absence of streamlined clearance processes as a major obstacle. Only 37% feel well-informed about existing government initiatives. Approval timelines spanning from six to twelve months are described as a serious threat by founders.
The third challenge revolves around talent acquisition. Startups face challenges in recruiting skilled technical personnel and lack access to high-quality mentorship from experienced entrepreneurs with expertise in scaling businesses.
To address these challenges, the report recommends targeted interventions that cater to the needs of founders. These include the establishment of a unified digital platform for registrations, compliance, and scheme applications, as well as the implementation of a mandatory 30-day service-level agreement for government approvals and fund disbursement.
Additionally, the report suggests providing subsidies for operational expenses such as co-working spaces, electricity, internet connectivity, statutory compliance, and patent filings. It proposes allocating 2-3% of procurement to local startups to ensure market access.
Furthermore, the blueprint calls for the creation of a dedicated fund of ₹50 crore for digital and technology startups, to be evaluated by industry experts and seasoned entrepreneurs. The report emphasizes the importance of early-stage risk capital, mentorship, and market access as essential components for fostering innovation-driven growth in the region.
Kashmir Angel Network underscores that these interventions can prevent viable startups from failing, generate high-value employment opportunities, retain talent, and drive the transition towards a digital and service-oriented economy.
The document urges the government to prioritize quality over quantity, focusing on sector-specific strategies with measurable outcomes rather than grant-heavy, compliance-centric programs.
In conclusion, the report emphasizes that strategic interventions in the Kashmir startup ecosystem have the potential to create valuable jobs, retain talent, and stimulate economic growth. It calls for collaborative efforts between founders and policymakers to ensure the successful implementation of these initiatives.
