UP Cabinet Approves Startup Policy 2026, Rs 15 Lakh Seed Funding For New Ventures

Last Updated:July 07, 2026, 03:44 IST

Under the new policy, seed funding support for startups has been increased from Rs 7.5 lakh to Rs 15 lakh.

The Uttar Pradesh Cabinet on Monday approved the Uttar Pradesh Startup Policy 2026 and the Uttar Pradesh Startup Mission to boost innovation, entrepreneurship and investment in the state. The new policy aims to make Uttar Pradesh a leading startup hub by providing financial support, incentives and infrastructure to new ventures, with a special focus on artificial intelligence (AI) and deep-tech startups.

The policy was approved at a Cabinet meeting chaired by Chief Minister Yogi Adityanath. The government said the initiative will create new employment opportunities for youth and support the state’s goal of becoming a one trillion-dollar economy.

Under the new policy, seed funding support for startups has been increased from Rs 7.5 lakh to Rs 15 lakh. In special cases, the assistance can be increased up to Rs 50 lakh. The monthly sustenance allowance has also been raised from Rs 17,500 for one year to Rs 20,000 for two years.

Focus On AI, Deep-Tech And Innovation

The policy provides special incentives for startups working in emerging fields such as AI, machine learning, robotics, quantum technology and space technology. Deep-tech startups will be eligible for prototype support of up to Rs 20 lakh, seed funding of up to Rs 30 lakh and patience capital support of up to Rs 100 crore.

The government will also provide financial assistance for research and development activities, while startups will receive support for patents, quality certifications and loans.

To strengthen the startup ecosystem, the state will establish 20 new Centres of Excellence focusing on areas including AI, healthtech, agritech, robotics and space technology. Financial support for these centres has been increased from Rs 10 crore to Rs 12 crore.

Startup Mission To Strengthen Ecosystem

The Cabinet also approved the Uttar Pradesh Startup Mission, which will work under the Department of IT & Electronics as the nodal agency for startup-related activities.

The mission will focus on improving coordination between startups, investors, academic institutions, incubators and industry partners. It will also support incubation, mentorship and acceleration programmes across the state.

Minister for IT & Electronics Sunil Sharma said Uttar Pradesh currently has around 17,000 registered startups. He added that the new policy will help expand the startup culture to villages and smaller towns.

The policy also includes special grants for incubators. Incubators in Purvanchal and Bundelkhand will receive enhanced support, while the state will create platforms to encourage young entrepreneurs through startup competitions, innovation programmes and awareness campaigns.

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