SRINAGAR: With a growing number of startups in Jammu and Kashmir moving beyond the ideation stage into revenue-generating businesses, a Srinagar-based industry body has urged the government to back the sector with faster approvals, easier compliance and a dedicated Rs 50 crore technology fund in the 2026–27 Budget.
The Kashmir Angel Network (KAN), which works with early and growth-stage entrepreneurs in the Valley, has submitted a formal policy proposal to the government, arguing that the region’s startup ecosystem is no longer short of ideas or schemes, but of “execution mechanisms” that translate policy intent into on-ground outcomes.
Based on a structured survey of 19 active founders across sectors, the network said most startups are now in early or mid-commercialisation stages, earning revenues but struggling to scale due to working capital shortages, regulatory delays and rising compliance costs.
The study found that nearly half of the surveyed ventures are fully bootstrapped, relying on personal or family savings, leaving little room for expansion or risk-taking. Founders described access to capital as the single biggest obstacle, particularly for companies that have proven their business model but lack the liquidity to grow operations.
KAN said this “mid-stage trap”, often referred to as the Valley of Death in startup terminology, is preventing otherwise viable enterprises from hiring staff, investing in technology and expanding into new markets.
The ecosystem spans a mix of sectors, with digital services and education accounting for roughly half the activity, followed by hospitality, tourism, agriculture and emerging technologies such as drones and 3D printing.
Apart from funding constraints, administrative bottlenecks were flagged as a major deterrent. Around three-fourths of respondents cited the absence of a single-window clearance system as the primary regulatory challenge, forcing founders to approach multiple departments for registrations, approvals and scheme applications.
Approval timelines of six to 12 months for grants and clearances were described as “existential threats” for small firms operating in fast-moving markets, where delays can render support ineffective by the time it arrives.
Awareness of government schemes was also low, with only about a third of founders saying they were fully informed about existing policies, which the network attributed to procedural complexity and fragmented communication.
To address these issues, KAN has recommended the creation of a unified digital portal that would handle all registrations, compliance filings and applications through a single interface. It has also called for a mandatory 30-day service level agreement for government approvals and fund disbursals to ensure timely support.
On the financial side, the network has proposed subsidies covering up to 50 per cent of statutory compliance costs such as GST filings, registrations and patent applications, along with support for co-working spaces, electricity and high-speed internet to ease operational burdens on early-stage ventures.
To create stable revenue streams, KAN has suggested reserving 2–3 per cent of government procurement for local startups, enabling them to secure predictable contracts and build credibility with private investors.
A key demand is the launch of a ring-fenced Rs 50 crore fund dedicated to digital and technology startups, to be evaluated by domain experts and experienced entrepreneurs rather than generalist committees. The proposal also seeks recognition of modern digital expenses such as cloud services and software subscriptions as eligible costs under government support.
KAN said these measures should be seen as investments rather than subsidies, arguing that enabling startups to survive and scale would generate high-value employment, reduce talent migration and diversify the region’s economy toward services and technology.
“The ecosystem has reached an inflection point,” the network noted, adding that targeted interventions at this stage could shift Jammu and Kashmir from a largely grievance-driven economy to one powered by innovation and enterprise.
The recommendations have been formally submitted for consideration in the upcoming Budget, with the organisation offering to work with the government as an implementation and advisory partner to bridge gaps between policy design and delivery.
