Kashmir Startups Submit Bold Growth Plan Ahead Of Budget

As Jammu & Kashmir gears up for its next budget session, the government has already received a detailed blueprint aimed at turning the region's startup ecosystem into a growth engine.

The document, submitted by Srinagar-based investment group Kashmir Angel Network, draws on insights from 19 local startup founders. It lays out clear recommendations to tackle the structural hurdles that have long slowed innovation in the valley.

The report notes that the ecosystem has reached a critical point.“It is no longer a collection of ideas but a growing group of revenue-generating businesses poised for expansion,” it states.

Most startups surveyed have moved beyond ideation, operating in early or mid-commercial stages. They generate revenue but struggle with working capital. Half are entirely bootstrapped, while mid-stage companies face acute funding shortages. KAN calls this the“Valley of Death,” where startups have product-market fit but lack the capacity to scale.

Sector-wise, digital services and education each make up 25 percent of startups, while hospitality, tourism, agriculture, and emerging sectors like drones and 3D printing make up the rest.

The report identifies three key barriers to growth. First is access to capital. Founders want risk-tolerant, founder-friendly funding rather than traditional bank loans.

Second is regulatory friction. Seventy-five percent of founders cite the lack of single-window clearance as a major hurdle. Only 37 percent say they are fully aware of existing government schemes. Approval timelines stretch from six to twelve months, which founders describe as“an existential threat.”

Third is talent. Startups struggle to hire skilled technical staff and lack high-quality mentorship from entrepreneurs experienced in scaling businesses.

To tackle these challenges, the report proposes targeted, founder-focused interventions. These include a singledigital platform for registrations, compliance, and scheme applications, alongside a mandatory 30-day service-levelagreement for government approvals and fund disbursement.

It also recommends subsidies for operational costs, including co-working space, electricity, internet, statutory compliance, and patent filings. The government should reserve 2-3 percentof procurement for local startups to guarantee market access.

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