The Government of Uttar Pradesh has proposed the Uttar Pradesh Startup Policy, 2026, introducing enhanced financial incentives, expanded incubation support and dedicated deep-tech funding to strengthen the state’s innovation ecosystem and position Uttar Pradesh as a leading startup hub.
The policy significantly increases financial assistance available to startups across different growth stages. The monthly sustenance allowance has been doubled to ₹20,000 for two years, up from ₹17,500 for one year, while prototype grants have increased to ₹10 lakh. Seed funding has also been doubled to ₹15 lakh, with support extendable up to ₹50 lakh in special cases.
The proposed policy also enhances other incentives, including reimbursement of up to ₹2 crore for patents and quality certifications, matching grants of up to ₹5 crore, a 4% interest subsidy on term loans up to ₹2 crore, and reimbursement of EPF and ESI contributions.
A major focus of the policy is the promotion of deep-tech innovation. Startups working in sectors such as artificial intelligence, robotics, quantum technology and space technology will be eligible for prototype grants of up to ₹20 lakh, seed funding of up to ₹30 lakh, patient capital of up to ₹100 crore, and financial support covering up to 40% of research and development costs.
To strengthen the startup support ecosystem, the state has proposed increasing capital grants for incubators to ₹1.25 crore, while incubators in Poorvanchal and Bundelkhand will receive up to ₹1.50 crore. Annual operational grants will rise to ₹40 lakh, and high-performing incubators will receive “Navratna Incubator” recognition along with incentives linked to funding secured by their incubated startups.
The policy also proposes establishing 20 new Centres of Excellence (CoEs) focused on emerging technologies, including AI, machine learning, space technology, HealthTech, AgriTech and robotics. Financial assistance for each CoE has been increased from ₹10 crore to ₹12 crore.
To encourage entrepreneurship across the state, the government plans to organise startup weeks, innovation seminars, business plan competitions, grand challenges and awareness programmes. It will also establish a state-level Deep-Tech U-Hub to provide startups with incubation support, mentorship, industry collaboration, investment opportunities and access to advanced laboratory infrastructure.
According to the government, the Uttar Pradesh Startup Policy, 2026 is aimed at fostering innovation-led economic growth, attracting investments, generating employment opportunities and supporting the state’s ambition of becoming a $1 trillion economy.