Karnataka Minister Urges Policy Reset to Accommodate New Technologies at ET Soonicorn Summit
In an address at the ET Soonicorn Summit, Karnataka Minister Priyank Kharge emphasized the need for the government to reset its policies in order to accommodate new technologies and sectors. He cited examples such as the bans faced by ride-sharing companies like Ola, Uber, and Rapido in different cities, as well as the 28% Goods and Services Tax (GST) on online gaming firms. According to Kharge, these policies hinder the growth of new businesses and reflect a lack of understanding of the technology behind them.
The Soonicorn summit, attended by startup executives and investors from various sectors including software-as-a-service, spacetech, cleatech, mobility, artificial intelligence (AI), logistics, and parts manufacturing, provided a platform for discussions on the challenges faced by startups and the need for collaboration between the government and industry.
Kharge also highlighted the importance of upskilling initiatives and urged startups and industry executives to collaborate with the government in this regard. The government is willing to bear 50% of the upskilling costs, with the industry and candidates sharing the remaining 50%. Kharge acknowledged the concerns raised by industry leaders regarding the lack of employable skills among engineers and the outdated syllabus. To address these concerns, the government has formed a skill advisory committee with participation from industry, academia, and the government.
The Karnataka government is expanding its centers of excellence (COE) to provide upskilling opportunities in sectors such as cybersecurity, internet of things (IoT), agri-innovation, data science and AI, semiconductors, aerospace, robotics, animation, VFX, and gaming. Furthermore, the government aims to strengthen the Karnataka Innovations Authority and introduce a preferential public procurement policy, offering startups the opportunity to have their products tested in a sandbox environment and potentially become the government’s first customer.
Alongside discussions on governance issues at startups and the benefits of going public, the event also featured panels on deep tech startups and manufacturing. Panel participants highlighted the need for ethical due diligence when investing in startups and the importance of finding startups with the right team, technology, and market size in the case of deep tech investments. Manufacturing startup Zetwerk’s CEO discussed the difficulty of raising seed funding in the manufacturing space and emphasized the golden era of manufacturing in India. He also revealed plans to open manufacturing capacities in both India and the United States.
Overall, the ET Soonicorn Summit provided an opportunity for key stakeholders in the startup ecosystem to come together, discuss challenges, and explore opportunities for collaboration. The event highlighted the importance of policy resets to foster innovation and accommodate new technologies, while also addressing the need for upskilling initiatives and improved investor due diligence in the startup ecosystem.
