Misleading Start-Ups Report? Opposition Slams Kerala Govt for Paying $48K to Fabricate Growth Data

Kerala’s opposition leader VD Satheesan on Wednesday accused the state government of paying $48,000 to the US-based Startup Genome between 2021 and 2024. The opposition leader during a press conference claimed that the state government has paid the start-up for a fabricated report that falsely highlights extraordinary growth in Kerala's startup sector.

Satheesan said that the state’s chief minister, Pinarayi Vijayan, was promoting this report to claim the development of the startup ecosystem in Kerala. He further alleged that the LDF government used this report to falsely claim a 254% growth in Kerala's startup ecosystem.

Also Read: Invest Kerala Summit: Adani Group, UAE-Based Firms Set to Invest; Total Pledge of Rs 1.53 Lakh Crore

The Allegation

The minister questioned the methodology of the report that compared startup data from Covid-struck years (2019 to 2021) with post-pandemic data from 2021 to 2024. How can the startup data of pandemic times, when most economic activities were frozen, be compared to the data of post-pandemic times when most startups and industries resumed, he criticised.

He also argued that the misleading comparison by the report exaggeratedly presented the state’s startup growth rate. "This is a clear case of the government paying an agency to paint a rosy picture of the state's economy. If the LDF government believes in transparency, let them publish all agreements and payments made to Startup Genome," he challenged.

Satheesan questioned the government's dependence on a paid foreign agency instead of allowing independent assessments. He accused the LDF government of manufacturing success stories in the absence of real progress. "There is no such survey. This is a deliberate attempt to mislead the public and create confusion," he claimed.

Also Read: Kerala to Become New Global Hub of Cutting-Edge Manufacturing Industries: Minister P Rajeev

The Response

Kerala Startup Mission (KSUM) responded to the allegations by stating that the Startup Genome is an organisation that has done credible work with more than 160 economic and innovation ministries and public/private agencies in over 55 countries. The organisation claimed the start-up to be reputed as a totally independent organisation that does not surrender in front of any external pressure or bias.

KSUM clarified that Startup Genome reports are closely monitored by global innovation ecosystems to ensure the good practices of governments, innovation agencies and startup clusters, and formulate development strategies in the light of the insights provided by them.

Lastly, Kerala has been a member of the ecosystem since 2021 and has given $48,000 as a membership fee so far over a period of four years. Apart from Kerala, states like Tamil Nadu, Karnataka and Telangana are also members, the organisation said.