Uttar Pradesh approves Startup Policy 2026 with ₹1,000 crore startup fund
The policy also provides a monthly sustenance allowance of ₹20,000 for 2 years to help founders during the early stages of building their businesses.
Uttar Pradesh Cabinet has recently approved the Startup Policy 2026, introducing a comprehensive framework to strengthen the state’s innovation ecosystem through financial incentives, incubator support, intellectual property assistance and targeted measures for deep-tech startups and underrepresented entrepreneurs.
A key highlight of the policy is the creation of a ₹1,000 crore Startup Fund to improve access to early-stage capital. Eligible startups can receive seed funding of up to ₹15 lakh, while strategically important or high-impact ventures may receive support of up to ₹50 lakh.
The policy also provides a monthly sustenance allowance of ₹20,000 for 2 years to help founders during the early stages of building their businesses.
To encourage product innovation, the government has doubled prototype development grants to ₹10 lakh and introduced annual cloud service reimbursements of up to ₹2 lakh.
The policy places particular emphasis on frontier technologies, offering dedicated support for startups working in artificial intelligence (AI), machine learning (ML), robotics, aerospace and other deep-tech sectors. Eligible ventures can also access patient capital through the Startup Fund, with support extending up to ₹100 crore for select high-potential deep-tech projects.
The policy significantly strengthens startup infrastructure by providing capital grants of up to ₹1.25 crore for incubators and up to ₹1.5 crore for incubators established in Purvanchal and Bundelkhand. Eligible incubators can additionally receive annual operational grants of up to ₹40 lakh, encouraging the development of startup ecosystems beyond the state’s established innovation hubs.
To improve implementation, the government has approved the establishment of the Uttar Pradesh Startup Mission as an autonomous body, replacing UP Electronics Corporation Ltd. as the nodal agency. Headed by the state’s Chief Secretary, the mission will oversee policy execution, coordinate stakeholder engagement and facilitate the deployment of startup support programmes.
The policy also places a strong emphasis on inclusive entrepreneurship, with dedicated incentives for women entrepreneurs, economically weaker sections, persons with disabilities, transgender entrepreneurs, and startups operating from Purvanchal and Bundelkhand. In addition, it promotes innovation among students and educational institutions while encouraging intellectual property creation, industry collaboration and improved market access for emerging startups.
Through the Startup Policy 2026, Uttar Pradesh aims to accelerate innovation-led economic growth, strengthen its position as one of India’s leading startup destinations and contribute to the state’s broader ambition of becoming a $1 trillion economy by 2030.