“The Uttar Pradesh government is empowering young entrepreneurs with ₹1 lakh startup grants under the UP Startup Policy 2020. Aimed at fostering innovation, the initiative supports early-stage ventures with financial aid, mentorship, and infrastructure. With 63 incubators and a goal to establish 100, UP is building a robust startup ecosystem to drive economic growth and job creation.”
Uttar Pradesh Launches ₹1 Lakh Grants to Fuel Startup Dreams
The Uttar Pradesh government has rolled out an ambitious initiative under the UP Startup Policy 2020, offering ₹1 lakh grants to young entrepreneurs to kickstart their ventures. This financial aid is part of a broader strategy to position UP as a leading startup hub in India, targeting a top-three ranking in the Department for Promotion of Industry and Internal Trade’s (DPIIT) State Startup Ranking. The policy emphasizes creating a conducive ecosystem through funding, mentorship, and infrastructure support.
Eligible startups, particularly those in the idea stage, can access a sustenance allowance of ₹17,500 per month for one year, with up to 10 startups per incubator benefiting annually. Additionally, the state provides ₹5 lakh for prototype development and ₹7.5 lakh as seed capital for market entry, disbursed in tranches to ensure effective utilization. These grants are non-repayable, easing the financial burden on early-stage entrepreneurs. The state has already disbursed ₹5.53 crore to incubators and ₹5.50 crore to 206 startups, with an additional ₹1.30 crore allocated for 38 more ventures.
To bolster this ecosystem, UP has established 63 incubators across 23 districts, with a goal to support 100 incubators, ensuring at least one per district. These incubators, including those at prestigious institutions like IIT Kanpur, IIM Lucknow, and AKTU, provide critical resources such as mentorship, co-working spaces, and access to labs. The state has also set up three Centers of Excellence (CoEs) in AI & ML, Drone, and MedTech, with plans for four more in Blockchain, 5G/6G, and Additive Manufacturing. These CoEs receive up to ₹10 crore over five years to foster innovation in emerging sectors.
The policy also incentivizes incubators with operational support of up to ₹30 lakh annually for five years and capital grants of up to ₹1 crore (₹1.25 crore in Bundelkhand and Purvanchal). Top-performing incubators are awarded ₹3 lakh, ₹2 lakh, and ₹1 lakh annually based on a KPI framework. For startups, additional incentives include ₹50,000 for national event participation and ₹1 lakh for international events, alongside patent filing reimbursements of ₹2 lakh for Indian patents and ₹10 lakh for international ones.
The initiative has shown tangible results, with startups spread across all 75 districts of UP. Notably, ₹18 lakh has been disbursed to 34 women-led startups, and ₹26.67 lakh to 18 startups in the Purvanchal region, highlighting the policy’s focus on inclusivity. By fostering collaboration through platforms like the Innovation Hub at AKTU, UP is enabling young entrepreneurs to transform ideas into market-ready solutions, driving economic growth and job creation.
Disclaimer: This article is based on information from official government sources, including the Uttar Pradesh Startup Policy 2020 (First Amendment-2022) and reports from invest.up.gov.in and startupindia.gov.in. Data is accurate as of August 5, 2025, and subject to change. Readers are advised to verify details through official portals for the latest updates.