India plans dedicated startup towns inspired by Silicon Valley

New Delhi: India has three vibrant startup hubs in Bengaluru, Delhi and Mumbai, but commerce minister Piyush Goyal believes dedicated startup townships can help replicate the success of Silicon Valley.

Goyal said the focus towns will provide resources, guidance and financial support to startups while promoting innovation, collaboration and knowledge sharing, and launch the Indian Startup Knowledge Access Registry (BHASKAR) under the Startup India initiative.

The initiative aims to serve as a centralized platform for stakeholders such as startups, investors, mentors, service providers and government agencies, in line with India’s broader goal of positioning itself as a global innovation and technology hub.

California’s Silicon Valley is the global hub for technology and innovation and home to some of the world’s largest tech companies, including Apple Inc., Google parent Alphabet Inc. and Meta Platforms Inc., which owns WhatsApp, Instagram and Facebook.

Also read | Startup IPOs are back in force

“It is time to start thinking about creating a whole new township for entrepreneurs, start-ups, innovators and people with ideas. It should be like a society, spread over about 200 acres to develop an ecosystem that encourages the exchange of ideas,” Goyal said.

“Often, someone might have a great idea but no clear path or support to make it a reality. This town will provide that platform, helping innovators connect with the right resources and networks to make their ideas a reality.”

Also read | India identifies over 20 countries for space startup opportunities

Central registry for startups

India’s commerce ministry has asked officials from the Department for Promotion of Industry and Internal Trade (DPIIT) to assess the need for setting up dedicated startup towns with all stakeholders.

Under the Startup India programme, the Indian government already operates several digital platforms for India’s startup ecosystem, including the Startup India Investor Connect Portal for fundraising; the National Mentor Portal for mentoring; the Startup India Hub for stakeholder engagement; and the Startup India Showcase, which highlights the best performing startups selected through various government schemes.

In addition, the Startup India Seed Fund program also helps startups with proof of concept, prototype development, product trials and market entry.

DPIIT Joint Secretary Sanjiv said, “BHASKAR will serve as a digital central registry of stakeholders involving nearly 1.5 lakh startups and provide search, interaction and knowledge sharing capabilities. The platform will focus on streamlining collaboration to address existing challenges in the ecosystem and promote entrepreneurship and job creation.”

Also read | Blockchain startups boom after government unveils national framework

India, now the world’s third-largest startup ecosystem after the United States and China, saw venture capital funding grow 42% between January and July, according to analytics firm GlobalData, with $6.3 billion raised across 672 deals during the period.

The government provides startup registration to businesses that have been operating in India for up to 10 years and are registered as a private limited company, partnership firm or limited liability partnership. In addition, the annual turnover of such companies must not exceed ₹100 crores in any financial year since incorporation of the company.

Also read | Bigger than takeout? Investors flock to back faith-based tech startups