“Uttar Pradesh launches new startup grants to empower young entrepreneurs, offering financial aid, mentorship, and incubation support. With a focus on innovation, the state aims to boost its startup ecosystem, targeting youth in tech, agriculture, and manufacturing. The initiative includes seed funding and tax incentives to drive economic growth.”
Uttar Pradesh Bolsters Startup Ecosystem with New Grants
The Uttar Pradesh government has rolled out a series of startup grants aimed at fostering innovation among young entrepreneurs, positioning the state as a burgeoning hub for new businesses. Announced in August 2025, the initiative targets individuals under 35, offering financial assistance, mentorship, and access to incubation centers to nurture early-stage ventures. The program, spearheaded by the Department of MSME and Export Promotion, aligns with the state’s Startup Policy 2020, which seeks to create 100 incubators and support 10,000 startups by 2027.
Under the new scheme, eligible startups can access seed funding of up to ₹50 lakh for proof of concept, prototype development, and market entry. The grants are non-dilutive, meaning entrepreneurs retain full equity, a significant draw for young founders. Additionally, the state has introduced tax exemptions for DPIIT-recognized startups for the first three years, easing financial burdens. Special provisions cater to women and entrepreneurs from marginalized communities, offering up to 85% loan guarantees through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The initiative also includes the UP Startup Accelerator Program, which provides mentorship from industry experts and access to co-working spaces. As of September 2025, over 1,200 applications have been received, with 300 startups shortlisted for funding. The state has allocated ₹500 crore for the program, with disbursements managed through partnerships with incubators like the Atal Incubation Centres and Technology Business Incubators (TBIs). Sectors such as agritech, healthtech, and manufacturing are prioritized, reflecting UP’s economic strengths.
Data from the Department of MSME indicates that Uttar Pradesh has seen a 65% rise in startup registrations since 2023, with cities like Noida, Lucknow, and Kanpur emerging as key hubs. The state’s startup ecosystem now boasts over 8,000 registered ventures, contributing to 1.2 lakh jobs. The new grants aim to further this growth, targeting Tier II and III cities to democratize entrepreneurial opportunities. The government has also partnered with private accelerators like Zone Startups India to provide global market access.
To apply, startups must be registered with DPIIT, incorporated within the last two years, and demonstrate innovative solutions with scalable potential. The application process, hosted on the UP Startup Portal, is streamlined to ensure transparency. Successful applicants receive milestone-based funding, with progress monitored by an Experts Advisory Committee. The initiative has drawn praise for its focus on inclusivity but faces challenges in ensuring timely disbursements and reaching rural entrepreneurs.
Disclaimer: This article is based on information from government announcements, official portals like startupindia.gov.in, and recent reports on Uttar Pradesh’s startup ecosystem. Data is accurate as of September 2025. For the latest updates, refer to official government websites.