CM Yogi Adityanath Unveils Inc42’s UP Startup Ecosystem Report 2025

SUMMARY

Backed by a supportive government and its policies, a state-of-the-art infrastructure, and a thriving entrepreneurial ecosystem, the region is home to more than 14,000 DPIIT-registered startups

The state’s prowess on the startup front has been such that of the total startups currently being fostered in the region more than 7,000 new-age ventures are being spearheaded by women

The state has also emerged as a key player in AI adoption, semiconductor manufacturing, and electric vehicle production. Under its Semiconductor Policy 2024, the state has approved INR 32,000 Cr for manufacturing units near Jewar International Airport

Uttar Pradesh (UP) has undergone an unrivalled transformation in the last decade or so. Also known as the Heartland of India and for its rich cultural heritage, the state today is one of the top five startup ecosystems being fostered in the country.

Backed by a supportive government and its policies, state-of-the-art infrastructure, and a thriving entrepreneurial ecosystem, the region is home to more than 14,000 DPIIT-registered startups, according to Inc42’s The State of Uttar Pradesh Startup Ecosystem Report 2025, unveiled by Chief Minister Yogi Adityanath during Inc42’s Griffin Retreat in Agra.

Griffin Retreat by Inc42, hosted at the iconic Oberoi Amarvilas, convened 75+ Indian unicorn and soonicorn founders for three transformative days, united by a shared mission — to accelerate India’s path to a $1 trillion digital economy.

The latest report from Inc42’s stable also revealed that the region contributes 55% of the nation’s smartphone production and 50% of component manufacturing. Besides, the region is also a leader in AI adoption, with India’s first AI city being developed in Lucknow, the capital of UP.

While addressing the gathering of some of the most eminent startup personalities, including the leaders of India’s top unicorns, at The Oberoi Amarvilas in Agra, the CM denoted Griffin Retreat as the Unicorn Mahakumbh of the startup world.

He said that the state’s prowess on the startup front has been such that of the total startups currently being fostered in the region, more than 7,000 new-age ventures are being spearheaded by women.

Meanwhile, according to the report, the UP government supports women entrepreneurs by reserving 25% of incubator seats for female-led startups and offering a 50% incentive for women-led startups with over 26% ownership.

Addressing the gathering that comprised names like Mohandas Pai (the chairman of Aarin Capital Partners), Aman Gupta (cofounder and CMO, boAt), Ritesh Agarwal (founder & group CEO OYO), Manish Taneja (CEO & MD Purplle.com), Mohit Saxena (cofounder & group CTO, InMobi), he added that UP has today grown beyond embracing top sectors like fintech.

This is where the CM reminisced how the PhysicsWallah founder, Alakh Pandey, expressed his delight when his company entered the coveted unicorn club.

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“Today, PhysicsWallah has penetration in the districts that have been lagging in tech adoption,” he said.

According to the Inc42 report, UP has eight unicorns — Paytm, PhysicsWallah, Pine Labs, Info Edge, RateGain, Moglix, IndiaMART and Innovaccer — all situated in the Noida region with a combined valuation exceeding $35 Bn.

The report also highlights that the state has received over $8.6 Bn in startup funding since 2014. Not just this, the rate of investment in this region is growing at a compounded annual growth rate (CAGR) of 14%.

The state has also emerged as a key player in AI adoption, semiconductor manufacturing, and electric vehicle production. Under its Semiconductor Policy 2024, the state has approved INR 32,000 Cr ($3.7 Bn) for manufacturing units near Jewar International Airport.

Commenting on the state’s EV policy, CM Yogi highlighted that the state provides a grant of INR 20 Lakh for each electric bus manufactured in the state.

“Over the next three to four months, we also plan to scale up electric vehicle production. I believe UP alone requires around 1.5 Lakh electric buses, and it currently has the highest number of electric vehicles in the country,” the CM said.

The state also provides a capital subsidy of 15% on two-wheelers (up to INR 5,000), three-wheelers (up to INR 12,000), and four-wheelers (up to INR 1 lakh).

Further, the state provides a subsidy of up to 30% for EV and battery manufacturing projects.

According to the CM, UP has the potential to triple its current production capacity. With strong connectivity, abundant resources, fertile land, and a thriving market, the state is well-positioned for growth.

He added that the government has launched an INR 4,000 Cr agritech-focussed fund to further drive innovation and development. According to the report, the agritech sector is one of the top-funded sectors in the state.

Inc42’s latest report also highlights that the state’s startup ecosystem has seen noticeable growth from 1,100 DPIIT-registered startups in 2018 to over 14,000 in 2024 – a massive 12.7X increase in just six years.

This growth is also reflected in the DPIIT’s States’ Startup Ecosystem Ranking, where UP has advanced from an “Aspiring Leader” (50-70 percentile) to “Leader” status (70-85 percentile). This rise is emblematic of the state’s commitment to fostering entrepreneurship and innovation.

Notably, the revelations of the Inc42 report have almost a decade after PM Narendra Modi launched the Startup India movement, envisioning India as the startup superpower of tomorrow.

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