Jammu And Kashmir Start-up Policy 2024: Fostering Entrepreneurship And Innovation-Led Growth

Policy Update

Vishal Kumar

Background

For decades, the economic narrative of Jammu and Kashmir was confined to the traditional “Big Three”: tourism, horticulture, and handicrafts. While these sectors provided a cultural identity and basic livelihood, they remained highly susceptible to external shocks, such as climatic shifts and seasonal volatility. With more than 3.6 lakh educated young people currently seeking employment in the Union Territory (Labour and Employment Department, 2025), the public sector has reached a saturation point, unable to absorb the influx of talent. Historically, this lack of local opportunity forced a significant “brain drain”, where graduates from premier local institutions migrated to other Indian states or abroad to pursue their ambitions.

The landscape began to shift following the abrogation of Article 370. The subsequent years saw a noticeable stabilisation in the security environment and, critically, a reduction in the frequent internet shutdowns that had previously crippled digital businesses. By 2020, entrepreneurs found they could plan with a level of predictability that was hitherto impossible. To capitalise on this newfound stability, the J&K administration, under Lieutenant Governor Manoj Sinha, approved the Jammu and Kashmir Start-up Policy 2024-27 on February 23, 2024. Superseding the older 2018 framework, this policy aims to transform the Union Territory into one of India’s leading innovation hubs by 2027 by converting scientific research into commercial ventures.

Functioning

The Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) serves as the nodal agency responsible for executing the policy’s multi-layered interventions, which are designed to support a start-up through every phase—from the initial spark of an idea to global market scaling.

Some of its key features are:

Financial Architecture and the Venture Capital Fund: A central pillar of the policy is the creation of a ₹250 crore Venture Capital Fund. Recognising that local start-ups often struggle to move past the ideation stage due to a lack of institutional backing, the government has committed an initial infusion of ₹25 crore. This “anchor capital” is designed to de-risk the ecosystem and attract further investments from private angel investors and accelerators, specifically to help recognised businesses scale their operations.
Tiered Seed Funding Support: For early-stage ventures, the policy provides a one-time seed assistance of up to ₹20 lakh, disbursed in four equal instalments. This funding is specifically earmarked for activities such as prototype development, product marketing, or any activity required for the initial scaling of a venture. However, to ensure quality and fiscal discipline, this support is currently capped at 25 start-ups per year.
Talent Incubation and Academic Integration: The policy moves beyond mere finance by institutionalising a network of 12 incubation centres across elite institutions like IIT Jammu, NIT Srinagar, IUST, and SKUAST. A unique feature is the “Gap Year” or Student Entrepreneur in Residence (SER) concept, where universities allow students to take a year off to build a company full-time, with a guaranteed path to return and complete their syllabus. Furthermore, schools and colleges are advised to update their curricula to include compulsory or optional courses in “Entrepreneurship Development” to inspire an aspirational shift in students.
Regulatory Relaxation and Market Access: To help local companies compete, the policy mandates that J&K government departments relax public procurement norms. Recognised start-ups are exempted from requirements of prior experience and prior turnover, provided they meet technical specifications. Founders are also provided with travel assistance-up to ₹1 lakh for international and ₹25,000 for domestic travel-to attend conferences and pitch to global investors.
Infrastructure and Mentorship: The administration provides access to fully serviced co-working spaces with high-speed internet at campuses in Pampore and Bari-Brahmana. To bridge the knowledge gap, a special fund of ₹10 lakh is set aside for “complex technical mentorship,” allowing start-ups to consult with reputed international experts.

Performance

The registration data reflects an astronomical surge in interest, although administrative disbursement of funds has only recently gathered momentum. Since 2021, the number of start-ups has grown from a base of just 69 to 1,306 by March 2026, marking a 1,793 per cent increase.

The following table summarizes the growth in registrations and institutional activity over the last three financial years:

Financial Year	Registered Start-ups	Mentoring Sessions	Boot Camps	Funding Rounds
2023–24	198	1	0	0
2024–25	293	4	0	1
2025–26*	779	6	43	3
Total	1,270	11	43	4

Source: J&K Entrepreneurship Development Institute (JKEDI)

Key Milestone Achievements:

Financial Sanctions: In the 2025-26 fiscal year, the government sanctioned ₹3.60 crore for 18 start-ups. However, actual disbursement has been cautious, with only ₹90 lakh released so far (₹5 lakh per startup) as of early 2026.
High-Value Investments: The horticulture sector has shown major promise, exemplified by Qul Fruitwall, which secured ₹60 crore from a Belgium-based investor (Incofin) in 2024.
National Visibility: Regional brands have successfully entered the national mainstream. Tramboo Sports and FastBeetle raised ₹30 lakh and ₹90 lakh, respectively, through national platforms like Shark Tank India.
Start-up Recognition: Under the Annual Startup Awards, GR8 Sports of Anantnag was declared the “Top Startup of the Year 2025” for its contribution to cricket bat manufacturing.

Impact

The Start-up Policy is beginning to alter the socio-economic fabric of the region, shifting the mindset from job-seeking to job-creation mainly through the following:

The Rise of Women Entrepreneurs: Perhaps the most significant impact is the scale of women’s participation. According to JKEDI, in 2024, 333 of 917 registered start-ups were women-led. Women-led MSME registrations also surged from 13,352 in 2021–22 to over 44,708 in 2023–24, indicating a massive entry of women into the formal economy.
Commercialisation of Research: Institutions like SKUAST-K have demonstrated that academic research can have commercial value. Their innovation ecosystem has produced more than 100 funded start-ups and secured over 120 granted patents, raising nearly ₹28 crore for incubated ventures (SKUAST-K Innovation, Incubation and Entrepreneurship Centre, 2026).
Widening the Sectoral Base: While construction and engineering account for nearly half of all ventures, there is a steady rise in high-tech solutions. Start-ups are now digitizing tourism experiences, providing tech-driven agricultural solutions, and building market-facing models for traditional handicrafts.
Grassroots Outreach: Through 43 boot camps and 1,105 outreach programmes in districts like Anantnag and Kulgam, the administration has managed to take the start-up culture to the panchayat level, encouraging rural youth to look beyond conventional employment.

Emerging Issues

Despite the statistical growth, several “alarm bells” regarding the actual delivery of benefits have been raised by stakeholders.

Stagnant Fund Disbursement: A major grievance is the delay in releasing financial aid. According to a reply by the Industries and Commerce Department in the Jammu and Kashmir Legislative Assembly (February 2026), no seed capital was provided during the 2023-24 and 2024-25 financial years. Funding only began to reach beneficiaries in 2025-26, and even then, only 25% of the sanctioned amount has been released to several start-ups.
High Dissolution Rates: The ecosystem shows signs of fragility. As of October 2025, 41 recognised start-ups were dissolved or struck off. Experts attribute this to weak business models, persistent funding constraints beyond the initial stage, and limited access to wider markets.
Scale vs. Need: The current cap of seed-funding support for only 25 start-ups per year is seen as insufficient for an ecosystem that is now registering over 700 start-ups annually.
Limited Private Investment: Despite government support, Jammu and Kashmir continues to attract relatively little venture capital and angel investment compared with established start-up hubs such as Bengaluru, Hyderabad and Delhi-NCR. Many start-ups remain dependent on public funding, making it difficult to scale once initial government assistance ends.
Market Access Constraints: Many start-ups face difficulties in accessing national and international markets because of geographical remoteness, limited industry networks, higher logistics costs, and weak integration with larger supply chains. This is particularly challenging for product-based enterprises.
Talent Retention: Although educational institutions produce skilled graduates, many relocate to larger metropolitan cities in search of better employment opportunities and entrepreneurial ecosystems. Retaining experienced technical and managerial talent remains a challenge for local start-ups.
Operational and Structural Hurdles: Founders continue to struggle with inconsistent power supply and regulatory friction. Concerns have also been raised regarding GST-related challenges and the lack of a dedicated grievance redressal mechanism that functions in real-time.
Information Asymmetry: While outreach has increased, many entrepreneurs in tier-II and tier-III regions still lack clear information on how to navigate the complex application processes for patent aid and travel incentives.

Way Forward

To ensure that Jammu and Kashmir’s start-up boom is sustainable and not merely a “registration bubble,” a strategic reset is required.

Mountain Science Specialisation: J&K should stop trying to replicate the software models of Bengaluru and instead focus on becoming a global hub for “Mountain Innovation”. This includes specialising in high-altitude agriculture, disaster forecasting, water management, and precision horticulture-areas where the region has a natural research advantage.
Accelerated Policy Implementation: Stakeholders have unanimously urged the government to speed up the release of sanctioned funds. Clearing the financial backlog is vital to maintaining investor confidence and preventing the premature closure of high-potential ventures.
District-Level Infrastructure Upgrades: The government must complete the establishment of mini smart classrooms and fully serviced training hubs at the district level to bridge the digital literacy gap.
Clustered Value Chains: Strengthening the link between laboratories and markets is essential. University-industry partnerships should be expanded to ensure that patented research is directly connected to manufacturers and private investors.
Strengthen Access to Private Capital: Establish co-investment mechanisms involving the government, venture capital firms, angel investors and corporate funds to reduce dependence on public financing and improve access to follow-on funding.
Expand Market Access: Support start-ups through export facilitation, e-commerce partnerships, participation in national and international trade fairs, and procurement opportunities under government purchasing programmes to help them reach wider markets.
Create a Dedicated Grievance Redressal System: Establish a digital single-window platform where entrepreneurs can report issues related to funding, approvals, taxation and compliance, with defined timelines for resolution.

By moving from a model of mere numerical growth to one of institutional accountability and sectoral specialisation, Jammu and Kashmir can truly leverage its youthful ambition to build a resilient knowledge economy.

References

Daily Excelsior. (2026, February 11). No seed capital provided to startups in 2023–24, 2024–25: Govt. https://www.dailyexcelsior.com/no-seed-capital-provided-to-startups-in-2023-24-2024-25-govt/
Government of Jammu and Kashmir. (2024, February 23). Government Order No. 29–JK(IND) of 2024: Jammu and Kashmir Start-up Policy, 2024-27. https://industriescommerce.jk.gov.in/Orders%202024/29%20IND%20OF%202024.pdf
Jibran, S. (2024, September 30). Jammu & Kashmir: A Rising Hub for Startups and Innovation. Kashmir Observer. https://kashmirobserver.net/2024/09/30/jammu-kashmir-a-rising-hub-for-startups-and-innovation/
KL News Network. (2026, February 3). Jammu Kashmir Government Rolls Out Startup Policy, Seed Funding and Incubation Support. Kashmir Life. https://kashmirlife.net/jammu-kashmir-government-rolls-out-startup-policy-seed-funding-and-incubation-support-423567/
Kashmir Observer Editorial. (2026, July 21). Kashmir’s Next Economy. https://kashmirobserver.net/2026/06/30/kashmirs-next-economy/
Kashmir Observer News Service. (2024, May 21). Startup Policy J&K: JKEDI, T-Hub Host Workshop for Startups, Incubators & Innovators. https://kashmirobserver.net/2024/05/21/startup-policy-jk-jkedi-t-hub-host-workshop-for-startups-incubators-innovators/
Livemint. (2024, February 23). Entrepreneurship boost: All you need to know about J&K’s new startup policy. https://www.livemint.com/companies/start-ups/jks-new-startup-policy-to-boost-entrepreneurial-spirit-in-students-women-and-hnis-all-you-need-to-know-11708670537716.html
Malik, I. A. (2026, April 1). OPINION | Jammu & Kashmir startups soar with women leading growth. https://www.moneycontrol.com/news/opinion/jammu-kashmir-startups-soar-with-women-leading-growth-13876777.html

About the Contributor:

Vishal Kumar is a Research & Editorial Intern at IMPRI. He is currently pursuing a Master’s degree in Political Science at the University of Jammu, Jammu and Kashmir. His research interests include Political Economy, Public Policy, governance and political Philosophy.

Acknowledgement:

The author would like to thank the reviewers and IMPRI team for the guidance throughout the process.

Reviewed by:

Madhuritha D and Sruti Halder

Disclaimer:

This article is intended for academic purposes only. The views expressed are those of the author and do not necessarily reflect the views of IMPRI or any government institution.