Goa Startup Policy 2020

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The GOA Startup Policy, officially known as the Goa Startup Policy 2021, is an initiative by the Government of Goa to foster entrepreneurship and innovation in the state.
What are the main aims and objectives?

To make Goa one of the most preferred start-up destination of India, and make it feature in the top 25 start-up destinations in Asia by 2025. Stated objectives: 

  • To make Goa an aspirational geographical and human resources base for high value start-ups.
  • To invite the best entrepreneurial minds to make Goa their professional base, and thereby build a robust start-up eco-system in the state.
  • To provide assistance to the Goan entrepreneurs and local start-ups.
  • To endeavour to create at least 100 successful start-ups in Goa in the next 5 years, targeting generation of employment for at least 5000 Goans.
How does the program work?

The Goa Startup Policy 2021 works through a multi-faceted approach to foster a thriving startup ecosystem in the state. Here's an overview of its key operational aspects:

Implementation Structure:

The policy is implemented through the Startup Promotion Cell (SPC), which acts as the nodal agency. This cell is responsible for registering startups, certifying their eligibility, and overseeing the development of the startup ecosystem in Goa. The SPC handles various functions including administration, communication, due diligence, and ecosystem development.

Startup Definition and Registration:

Under this policy, a startup is defined as an entity that is up to ten years old from its date of incorporation or registration in Goa, with an annual turnover not exceeding INR 100 crore in any preceding financial year. Eligible entities can be Private Limited Companies, Registered Partnership Firms, or Limited Liability Partnerships. The SPC manages the registration process for these startups.

Financial Support:

The policy provides various financial incentives to support startups at different stages of their development. This includes:

  • A venture capital fund (VCF) that operates as a 'fund of funds', investing up to INR 1 crore in promising startups.
  • Subsidies for startups operating from co-working spaces or incubators.
  • Reimbursement of expenses for startups operating from leased or privately owned premises.
  • Seed capital support for early-stage startups.

Skill Development and Employment:

To boost local employment and skill development, the policy offers:

  • Salary reimbursements for startups hiring local talent, with a maximum of INR 15,000 per month per recruit.
  • Skill development programs and initiatives to enhance the employability of Goan students in startups.
  • Introduction of DIY modules in schools and online open courses at the university level to develop technical and problem-solving skills.

Infrastructure Support:

The policy aims to develop technology and innovation hubs, incubation centers, and research and development labs over the next three years. It also provides grants for establishing incubation centers within educational institutes.

Intellectual Property and R&D Support:

To promote innovation, the policy offers:

  • 50% reimbursement of R&D expenses, including salaries of PhD holders employed by startups.
  • Patent filing cost reimbursements.
  • IPR reimbursement and trademark reimbursement schemes.

Regulatory Easing:

The policy allows registered startups to operate 24x7 and provides for self-certification under various labor laws, reducing regulatory burdens on young companies.

Ecosystem Development:

The SPC works on developing a mentor network and organizes various events to foster connections within the startup community. It also collaborates with industry and academia to strengthen the overall ecosystem.

Monitoring and Adaptation:

The policy is designed to be responsive to the changing dynamics of startups, entrepreneurs, and industry. It will evolve based on feedback and changing needs to maintain Goa's competitive edge in the startup ecosystem.

What is the overall cost?

There is no available information on the cost of implementing the GOA Startup Policy 2021

How was it implemented?

The creation of the Goa Startup Policy 2021 was a collaborative and thoughtful process that began in early 2020. The Goa Startup Promotion Cell (SPC) initiated the development of the new policy, taking into account the experiences and outcomes of the previous 2017 policy, which had expired in 2020 and was extended twice for six months each until September 30, 2021.

In crafting the new policy, the SPC sought input from various stakeholders and existing startups in the state. This approach ensured that the policy would address the real needs and challenges faced by entrepreneurs in Goa. Additionally, the cell reached out to the Centre's Department for Promotion of Industry and Internal Trade (DPIIT) for ideas and guidance, leveraging national-level expertise in startup ecosystem development1.

The policy development process took into consideration Goa's unique position and aspirations. The government aimed to create a policy that would not only support local entrepreneurs but also attract talent and investment from outside the state. This dual focus was designed to build a robust startup ecosystem within Goa, capitalizing on the state's cosmopolitan culture, quality of life, and clean environment as selling points for potential entrepreneurs.

Throughout the development phase, which lasted from early 2020 to late 2021, the policy underwent several revisions and refinements. The government increased the budget allocation for startup support to four times the previous amount, indicating a significant commitment to the sector. Finally, after nearly two years of work, the Goa Startup Policy 2021 was approved and notified by the state government on November 11, 2021, setting the stage for a new era of entrepreneurship and innovation in Goa.

What impact has been measured?

So far, the government has disbursed over ₹3.5 crores (approx. $412,500) in state grants to startups. The policy has also led to a notable increase in startup registrations, with 441 startups now recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). Various incubators have also been established, providing crucial support:

  • FiiRE (Forum for Innovation Incubation Research and Entrepreneurship) has disbursed ₹4.5 crores (approx. $530,000) and offers 114 seats.
  • AIC GIM Atal Incubation Centre has disbursed ₹1.2 crores.
  • BITS Goa Innovation, Incubation & Entrepreneurship Society (BGIIES) has disbursed ₹3 crores (approx. $350,000)
What lessons can be learned?

In late July 2020, the Goa Technology Association questioned the move to revise the 2017 startup policy when several startups have failed to benefit from the startup schemes.The Goa Startup Policy 2017 offered 14 incentives, but the SPC has received 77 applications from startups for these schemes. Of these 77 applications, 68 startups applied for just three schemes, while nine applications were for five schemes. The remaining six schemes got no takers. 

CURATED BY

Yatin K Thakur

Founder & Managing Partner
Asiarath
United Arab Emirates