Karnataka is working on a procurement policy that will require government departments and bodies to also source a significant part from startups.
While inaugurating an event to plan strategies to take Karnataka towards building a USD 1 trillion economy, IT/BT Minister Priyank Kharge said, “This is going to be a game-changer policy for the entire startup ecosystem.”
The event was organised by the FICCI in collaboration with the state government’s Planning & Statistics department. The state government was framing the rules, which is expected to out in about a month, according to the minister.
The government may allocate 5 per cent of its procurement to startups. This opportunity would be open to startups registered with the state government, allowing them to provide goods and services to government departments. This policy aims to support startups, as they often struggle with fulfilling large government orders due to their small size. Even a 5 per cent share in a procurement size of Rs 10,000 crore would be significant for startups.
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