The Uttar Pradesh government has approved the new Startup Policy 2026 and launched a new Startup Mission to encourage entrepreneurship in the state.
Under the new policy, financial support for startups has been increased, including higher monthly allowances, prototype grants, and seed funding.
A great example of startup success is Anjali Singh, who started Jute for Life in the small village of Bhulbhulpur in Lucknow district with an investment of just ₹10,000.
Today, her business has achieved a turnover of ₹5 crore and has created employment opportunities for 250 women.
Inspired by such success stories, the UP government has introduced the new policy to create a better environment for startups across the state.
Higher Financial Support for Startups
Under the new Startup Policy, the government’s initial support allowance for startups has been increased from ₹17,500 to ₹20,000 per month.
Earlier, this support was available for one year, but it will now be provided for two years.
The government has also doubled the prototype grant from ₹5 lakh to ₹10 lakh. Similarly, seed funding has been increased from ₹7.5 lakh to ₹15 lakh. In special cases, seed funding can be increased up to ₹50 lakh.
New Startup Mission and Focus on AI
The government has also created an independent UP Startup Mission, which will be headed by the Chief Secretary. The mission will manage all startup-related activities, replacing the UP Electronics Corporation.
The new mission includes cloud reimbursement of up to ₹2 lakh per year and a ₹1,000 crore startup fund.
The government will give special attention to advanced sectors such as Artificial Intelligence (AI) and deep-tech.
According to Anjali Singh, whose startup Jute for Life has become a success, the new startup policy can prove to be a major boost for small entrepreneurs in Uttar Pradesh.
Special Benefits for Deep-Tech and Inclusive Growth
The policy includes special provisions for deep-tech sectors such as AI, machine learning, robotics, and aerospace. Large projects in these fields can receive patient capital of up to ₹100 crore.
The policy also continues to support women entrepreneurs, persons with disabilities, transgender entrepreneurs, and people from economically weaker sections.
In addition, startups established in the Purvanchal and Bundelkhand regions will continue to receive extra incentives, encouraging entrepreneurship in these backward areas of the state.
A Step Towards a $1 Trillion Economy
The new Startup Policy is directly linked to Uttar Pradesh’s goal of becoming a $1 trillion economy by 2030. The Yogi government believes that startups will play a major role in achieving this ambitious target.
