States like Karnataka and the undivided Andhra Pradesh are much ahead of its counterparts in the country in terms of Information Technology (IT) industry. Its capital cities Bengaluru and Hyderabad became major IT hubs in the 2000s, attracting big multinational companies. But it didn’t happen overnight; it took decades of developing the right ecosystem to reach there. Former Chief Minister of Karnataka SM Krishna (1999-2004) and his Andhra Pradesh counterpart Chandrababu Naidu were no doubt instrumental in taking the capital cities of their respective states to the global level, but many believed it was responsible for their downfall in state politics, over rural anti-incumbency sentiments. However, the two IT hubs became cash cows for the states in terms of revenue, providing thousands of employment opportunities to the people. Startup ecosystem was already in place in these two cities much before the government of India launched Start Up Policy in 2016. No wonder the two cities remain top startup hubs in the country. Strong entrepreneurship culture, availability of skilled workforce, tech-savvy population, etc., that were developed over several years, set the cities apart from the rest.
However, most Indian states are still far behind in developing startup ecosystem even today, more so in the Northeast. Amid dwindling employment opportunities in public sector, the government of Nagaland announced its startup policy in the budget 2019-20 with an aim to create a culture of entrepreneurship, promote innovation among the youth and to help jobseekers become job creators. The policy has provisions for eligible startups to avail financial assistance and concessions on GST, broadband, power, patent filing, marketing, women entrepreneurs, and others. Despite economic activities being disrupted by the COVID-19 pandemic, several initiatives were taken up under the policy and MoUs signed with several organisations to run incubation centres with an aim to create environment for startups to grow. There is no concrete data available but the growth of startups in the state is evident. The Minister for Development of North Eastern Region G Kishan Reddy had said in the Lok Sabha earlier this year that the department for Promotion of Industry and Internal Trade had recognised 21 startups from Nagaland. The active participation of many startups from the state in the just concluded CSR and Investment Conclave also indicates that entrepreneurship culture is taking shape in Nagaland. This momentum should be maintained for a sustainable economy. The state government should continue to support and nurture startups and entrepreneurs for long-term gains. In the meantime, entrepreneurs should not succumb to competition by giving up promising enterprises midway, which is something not uncommon in our society. Community support is also vital for startups, especially those related to technology, to thrive.