Yogi govt clears Startup Policy 2026 with eye on UP's $1 trillion economy goal
The Uttar Pradesh government has approved the Startup Policy 2026, introducing a series of financial incentives and institutional reforms aimed at strengthening the state's rapidly
The Uttar Pradesh government has approved the Startup Policy 2026, introducing a series of financial incentives and institutional reforms aimed at strengthening the state's rapidly expanding startup ecosystem. The policy, cleared by the state Cabinet on July 6, is aligned with the government's vision of transforming UP into a USD 1 trillion economy by 2030, with innovation and entrepreneurship expected to play a central role. Read Full Story The new framework places special emphasis on emerging technologies such as artificial intelligence (AI), machine learning, robotics, aerospace and other deep-tech sectors. The policy significantly enhances financial support for startups at different stages of growth Eligible startups will be able to access seed funding of up to Rs 15 lakh Projects identified as strategically important can receive assistance of up to Rs 50 lakh. To improve access to early-stage capital, the government has also established a Rs 1,000 crore Startup Fund. Selected startups will be entitled to a monthly sustenance allowance of Rs 20,000 for a maximum period of two years Grant available for prototype development has been increased to Rs 10 lakh.
Startups will be eligible for reimbursement of up to Rs 2 lakh every year towards cloud computing services. One of the defining features of the Startup Policy 2026 is its focus on building a strong deep-tech ecosystem. The government has proposed long-term patient capital support of up to Rs 100 crore for large projects operating in strategic sectors, including AI, machine learning, robotics and aerospace, reflecting its intention to position Uttar Pradesh as a major destination for advanced technology-driven enterprises. The policy also introduces institutional changes aimed at improving implementation. A new autonomous body, the UP Startup Mission, will oversee the state's startup initiatives under the leadership of the Chief Secretary. The mission will replace UP Electronics Corporation as the nodal agency responsible for executing startup-related programmes and coordinating policy implementation. The government has retained its focus on inclusive entrepreneurship by continuing targeted incentives for women entrepreneurs, persons with disabilities, transgender entrepreneurs and individuals from economically weaker sections.
Additional benefits will also continue for startups established in the Purvanchal and Bundelkhand regions to encourage innovation and business creation in relatively underdeveloped parts of the state. EXTENSION OF STARTUP POLICY 2020 The new policy builds on the gains made under the Startup Policy 2020, which was amended in 2022. Under the earlier framework, the government had created a Rs 1,000 crore Corpus Fund that channelled investments through Alternative Investment Funds managed by SIDBI. It also offered prototype development grants of up to Rs 5 lakh, seed capital support of up to Rs 7.5 lakh for market entry, and reimbursement of patent filing expenses, including up to Rs 2 lakh for domestic patents and Rs 10 lakh for international patent applications. The policy had also targeted the establishment of at least one incubator in every district, with an overall goal of creating 100 incubators and supporting 10,000 startups. Government estimates indicate that Uttar Pradesh is now home to more than 17,000 startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT), placing it among India's leading startup ecosystems.
The BriefWire