UP cabinet approves New Startup Policy 2026. The policy aims to provide seed funding support, financial assistance, grants and provisions. Read more about the new startup policy its features, funding and eligibility criteria.
Uttar Pradesh government has officially approved the UP New Startup Policy 2026 replacing the older 2020 framework. The policy marks a major step towards transforming Uttar Pradesh into a global hub for business, technology and entrepreneurship.
The new startup policy focuses on fueling grassroots innovation supporting high-growth deep-tech ventures and extending unparalleled financial lifelines to young founders. The new policy focuses on doubling the seed capital ( initial money to launch a startup).
What is UP New Startup Policy 2026?
The UP New Startup Policy 2026 is a strategic roadmap designed by the Information Technology and Electronics Department to support founders through each stage of their business lifecycle from early-stage idea and Initial prototyping to commercialization and scale. The policy will be administered via the official platform StartinUP. The executive authority is UP Electronics Corporation Ltd. It is a newly formed autonomous body called the Uttar Pradesh Startup Mission.
Key Features of the UP Startup Policy 2026
The new updated policy brings significant enhancements to support capital requirements, deep-tech research and regional parity and infrastructure development. Here are the key features of the New startup Policy
Financial Infrastructure and Fund Details
The government approves the ₹1,000-crore fund to improve access to early-stage equity and capital. A specific ₹400-crore corpus has been reserved for the Dr. APJ Abdul Kalam Technical University (AKTU) Innovation Hub.
The policy also offers up to ₹100 crore in patient capital for the long-term development of science and technological advancement
Subsidies and Grants under the Policy
Compared to the previous framework, the financial assistance across multiple startup growth stages has been aggressively scaled up:
| Benefits | Earlier Policy Limits | Under the New 2026 Policy |
| Founder Sustenance Allowance | ₹17,500 / month (for 1 year) | ₹20,000 / month (for 2 years) |
| Prototype Grant | Up to ₹5 Lakh | Up to ₹10 Lakh (Up to ₹20 Lakh for Deep-Tech) |
| Core Seed Funding | Up to ₹7.5 Lakh | Up to ₹15 Lakh (Up to ₹30 Lakh for Deep-Tech) |
| Strategic/Special Cases Seed Fund | N/A | Up to ₹50 Lakh |
Other Incentives Given by the UP Govt. under the new Startup Policy
The government has also given extra perks and incentives under the UP Startup Policy 2026 such as
Cloud infrastructure reimbursement of up to ₹2 Lakh annually towards managing digital tools and cloud hosting costs. Compliance and legal support reimbursement up to ₹2 Crore for patent filings and national/international quality certifications
Matching grants and loans to matching grants up to ₹5 Crore, alongside a 4% interest subsidy on term loans up to ₹2 Crore. Employment assistance for complete reimbursement of employer contributions toward Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI).
Capital grants for incubators have also been increased to ₹1.25 Crore. Especially for the Poorvanchal and Bundelkhand regions which can access up to ₹1.50 Crore under the Navratha incubator program.
A worl class state level deep technological U-Hub is being established in cities like Noida and Lucknow to bridge the gap between advanced research labs industrial mentors and active investor networks.
Eligibility criteria
To take advantage of financial grants, subsidies and infrastructure assistance under the UP New Startup Policy 2026. Institutions and individuals need to follow these criteria
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The startup must be recognised by the Department of Promotion of Industry and Internal Trade(DPIIT) under the Government of India.
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The company must be registered as a private limited company, limited liability partnership and registered partnership firm.
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The company must be registered and have its active operational office located within Uttar Pradesh.
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The business existence and its overall operations should not exceed 10 years from the date of incorporation(up to 20 years for recognized companies).
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The annual turnover must not exceed ₹200 crore (or ₹300 crore for deep-tech) in any financial year since its incorporation.
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The company must work toward the development, deployment or commercialisation of new or improved technology, products or services, and scalable business models. The startups founded or co-founded by women, individuals from economically weaker sections(EWS), persons with disabilities and transgender entrepreneurs will be provided additional structural advantages and relaxed criteria.
