- Uttar Pradesh Government has officially approved the Startup Policy 2026, a strategic initiative aimed at bolstering the state’s burgeoning startup ecosystem.
- The policy, sanctioned by the state Cabinet on July 6, is designed to align with the government’s ambitious goal of turning Uttar Pradesh into a USD 1 trillion economy by 2030.
- The new framework particularly prioritises emerging technologies, including artificial intelligence (AI), machine learning, robotics, and aerospace, to facilitate the growth of deep-tech sectors.
- Eligible startups will have access to seed funding of up to ₹ 15 lakh, while projects identified as strategically important may receive assistance of up to ₹ 50 lakh.
- Additionally, the government plans to establish a ₹ 1,000 crore Startup Fund to improve access to early-stage capital.
- Selected startups will be eligible for a monthly sustenance allowance of ₹ 20,000 for a period of two years, aiding in their operational costs during critical early stages.
- The grant for prototype development has been raised to ₹ 10 lakh, enabling entrepreneurs to innovate more effectively.
- One notable feature of the policy is the reimbursement scheme for cloud computing services, allowing startups to claim up to ₹ 2 lakh annually.
- The policy outlines the provision of long-term patient capital support of up to ₹ 100 crore for larger projects in strategic industries.
- A new autonomous body, the UP Startup Mission, will oversee the state’s startup initiatives and will operate under the leadership of the Chief Secretary.
- The government also maintains its commitment to inclusive entrepreneurship by providing targeted incentives for women entrepreneurs, individuals with disabilities, transgender entrepreneurs, and those from economically weaker sections.
- Moreover, additional benefits will be offered to startups established in the Purvanchal and Bundelkhand regions.
The Uttar Pradesh government has officially approved the Startup Policy 2026, a strategic initiative aimed at enhancing the state's startup ecosystem. This policy, sanctioned by the state Cabinet on July 6, aligns with the government's ambitious goal of transforming Uttar Pradesh into a USD 1 trillion economy by 2030.12
The new framework prioritizes emerging technologies such as artificial intelligence (AI), machine learning, robotics, and aerospace, facilitating the growth of deep-tech sectors. Eligible startups can access seed funding of up to Rs 15 lakh, while strategically important projects may receive assistance of up to Rs 50 lakh.345
To improve access to early-stage capital, the government has established a Rs 1,000 crore Startup Fund. Selected startups will also be entitled to a monthly sustenance allowance of Rs 20,000 for two years, aiding operational costs during critical early stages. The grant for prototype development has been raised to Rs 10 lakh, and a reimbursement scheme for cloud computing services allows startups to claim up to Rs 2 lakh annually.789
A new autonomous body, the UP Startup Mission, will oversee the state's startup initiatives under the Chief Secretary's leadership. The government remains committed to inclusive entrepreneurship, providing targeted incentives for women, individuals with disabilities, transgender entrepreneurs, and those from economically weaker sections. Additional benefits will also be offered to startups in the Purvanchal and Bundelkhand regions.111213
Government estimates indicate that Uttar Pradesh is home to over 17,000 startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), with eight unicorns and more than 70 incubators and innovation centers.
“Eligible startups can access seed funding of up to ₹15 lakh, while strategically important projects may receive up to ₹50 lakh. The policy also establishes a ₹1,000 crore Startup Fund and offers a monthly sustenance allowance of ₹20,000 for two years.”
The CSR Journal
