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Start Up India: Gujarat

Gujarat has been a stronghold of manufacturing activities and enjoys leading position in terms of
industrialization and overall economic development. It has been one of the pioneering states in
spearheading innovations. The history of the state is full with sagas of enterprising people, who dared
to cross the seas and trade with Africa & European countries in ancient times. The growth of textile
mills in Ahmedabad made it Manchester of East. The Father of the Indian space programme, Dr.
Vikram Sarabhai gave Gujarat gifts of institutions like PRL and ISRO. Other significant institutes of
the state are Ahmedabad Textile Industries Research Association (ATIRA), National Institute of
Design (NID), NIFT and Centre for Environmental Planning and Technology (CEPT).

Recognizing the potential of entrepreneurship as a key driver for economic growth and social
development, Government of Gujarat established the Centre for Entrepreneurship Development
(CED) in 1979 and Entrepreneurship Development Institute of India (EDII) in 1983 to promote
entrepreneurship in the State. GVFL Limited (formerly Gujarat Venture Finance Limited) founded in
1990at the initiative of World Bank and supported by the Government of Gujarat, is widely regarded
as pioneer of Venture capital in India. Centre for Innovation Incubation and Entrepreneurship (CIIE)
was established in 2002 by Indian Institute of Management (IIM), Ahmedabad, as a national Centre
of Excellence in promoting entrepreneurship. Government of Gujarat also constituted the Gujarat
State Innovation Council in 2013 to encourage and incentivize innovation in the state. Ahmedabad
was classified as an 'Emerging City' for start-ups by NASSCOM in 2015. More than 60% of
Gujarat’s population is in the age group of 15-59 and this young workforce has an innovative and
entrepreneurial mind set.

Before the Government of Gujarat Startup Scheme that was launched in 2015,there were very few
incubators in Gujarat and they were all working in isolation from each other. There was no
institutional framework in the state to financially support and promote entrepreneurship. Government
of Gujarat realized that risk capital (Pre-seed) was lacking with even Angel Investors (seed capital),
not to speak of Venture Capitalists, who used to come in only when the product/ service was
validated and there was some initial revenue. Moreover, there were gaps in the ecosystem as far as
other aspects which support innovation such as support for intellectual property, mentor network,
institutions talking/ sharing best practices, collaborating to promote innovation and an organized
framework for funding. Also, innovation was centered only in select hubs in the state and it was
important that innovation spreads all across the state. Hence, it was necessary to galvanize the start-
up community to work together and with the state government. It was also imperative that funds

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