SUMMARY
Under the revamped policy, the monthly sustenance allowance for startups has been increased from INR 15K to INR 17,500
As part of the policy, selected startups will get INR 5 Lakh worth funding for prototype development
The state government has planned to set up five more startup centres of excellence (CoE) in the province
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The Uttar Pradesh (UP) government has revamped its startup policy by adding more incentives and financial sops to promote ease of doing business for new startups in the state.
Under the revamped policy, the state government has increased startup seed capital by 50% from INR 5 Lakh to INR 7 Lakh. Besides, the monthly sustenance allowance for startups has been increased from INR 15K to INR 17,500. Additionally, selected startups will get INR 5 Lakh worth funding for prototype development, according to a Business Standard report.
Further, the state government has planned to set up five more startup centres of excellence (CoE) in the province. At present, a total of 52 government-recognised incubators and nearly 7,200 DPIIT-registered startups are operating in the state.
Earlier, the state government proclaimed setting up an INR 4,000 Cr ‘UP Innovation Fund’ to infuse money in seed-stage startups. Besides, it is also looking to set up an INR 1,000 Cr angel fund to back about 10,000 startups.
The development has come at a time when the Centre and state governments are taking various initiatives to encourage emerging startups and unicorns.
Recently, the Kerala government rolled out a scheme to reimburse up to INR 10 Lakh expenses to startups for buying technology from the government’s research institution. This move will help startups in commercialising and developing their tech products.
Startup Policy Rundown
In recent times, various state governments realised the potential of Indian startups and subsequently introduced or revamped their respective startup policies.
Earlier in April, the Tamil Nadu government revamped its startup policy, to encourage about 10K startups by 2026. Meanwhile, in May, the Delhi government introduced its startup policy thereby, subsidising basic amenities including internet and office rent and also offering collateral-free loans to startups.
During the same month, the Madhya Pradesh government introduced its startup policy that offered services including concession on stamp duty for startup registration, program planning and lease rental, among others.
Besides, the Arunachal Pradesh government initiated its startup policy in the month of May. The policy aimed to help the creation of about 250 startups in the state in a span of five years.
Further, in June, the Haryana government initiated its startup policy to offer financial and non-financial benefits to DPIIT-registered startups operating in the province.
In July, the Bihar government too launched its startup policy to offer an interest-free seed fund of about INR 10 Lakh. It will also offer INR 3 Lakh for product development and training to startups participating in an accelerator program.
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