Quit job, become entrepreneur to get ₹25k/month: Karnataka Minister

Karnataka IT Minister Priyank Kharge announced at the Moneycontrol Startup Conclave in Bengaluru on August 9 that aspiring entrepreneurs who have left their jobs will receive a monthly stipend of Rs 25,000 for a year to help them cover basic domestic expenses.

“We are soon launching an entrepreneurship programme, perhaps the first of its kind in the country, where if someone has quit their job to become an entrepreneur, we will pay a stipend of Rs 25,000 per month for a year. It's a small amount considering the high inflation, but at least we will ensure that domestic expenses are taken care of,” Kharge said.

The same programme under the name of Rajiv Gandhi Entrepreneurship Programme (RGEP) was suggested to be launched by  Karnataka CM Siddaramaiah in the Union budget 2024-25.

According to IT-BT department officials, RGEP is designed for young entrepreneurs with a science or engineering background who will receive guidance from K-tech innovation hubs and the stipend.

Karnataka As A Startup Hub:

Kharge also highlighted why entrepreneurs from other states have registered their businesses in Karnataka. According to him, Bengaluru evolved from being a hub for back-office operations to becoming a leader in research and development. 

He said Karnataka ranks number 1 in the Innovation Index and is the top state in service exports. Additionally, Karnataka has established the Global Innovation Alliance with 32 countries, creating specific corridors for startups registered with the Karnataka government to ensure they get market access abroad.

Minister Kharge highlighted his government's efforts to make Karnataka a leading startup ecosystem, including establishing the Global Innovation Alliance with 32 countries. He mentioned specific corridors for startups registered with the Karnataka government and plans for sector-specific corridors, such as an AI corridor with San Francisco.

Kharge said, “We have also established the Global Innovation Alliance with 32 countries, creating specific corridors for startups registered with the Karnataka government to ensure they get market access abroad. For instance, we have startups that have set up shop in Germany, Australia, and Belgium.”