“Uttar Pradesh is fueling its tech startup ecosystem with fresh grants aimed at fostering innovation. The state’s new funding schemes offer financial support, mentorship, and infrastructure to early-stage ventures, targeting sectors like AI, fintech, and agritech. With streamlined application processes, these grants aim to position UP as a hub for cutting-edge startups.”
Uttar Pradesh Unveils Grants to Power Tech Startup Innovation
New Funding Schemes Launched
The Uttar Pradesh government has introduced a series of grants under its Startup Policy 2020, updated in 2025, to bolster tech-driven startups. These schemes provide non-dilutive funding of up to ₹25 lakh for proof of concept, prototype development, and market entry, targeting sectors such as artificial intelligence, fintech, agritech, and health tech. The initiative aims to nurture 10,000 startups by 2027.
Eligibility and Application Process
To qualify, startups must be registered with the Department for Promotion of Industry and Internal Trade (DPIIT) and incorporated in Uttar Pradesh. The application process is streamlined via the UP Startup Portal, requiring a detailed business plan, proof of concept, and financial projections. Approved startups receive funds through state-backed incubators like the UP Centre of Excellence for Innovation.
Focus on Deep-Tech and Rural Innovation
The grants prioritize deep-tech startups, with a special emphasis on AI, machine learning, and IoT solutions. Additionally, the state is promoting rural innovation through schemes like the UP Agritech Innovation Grant, offering up to ₹15 lakh for startups addressing agricultural challenges. This aligns with UP’s goal to integrate technology into its agrarian economy.
Mentorship and Infrastructure Support
Beyond funding, the UP government is providing access to mentorship through the MAARG platform, connecting startups with industry experts. Incubation centers in Lucknow, Kanpur, and Noida offer co-working spaces, prototyping labs, and networking opportunities. The state has allocated ₹100 crore to establish 50 new incubators by 2026.
Tax Incentives and Ecosystem Growth
DPIIT-recognized startups in UP are eligible for tax exemptions for the first three years, including relief from angel tax. The state’s startup ecosystem has grown significantly, with over 5,000 registered startups as of August 2025, contributing to 1.2 lakh jobs. Cities like Noida and Greater Noida are emerging as tech hubs, rivaling Bengaluru and Hyderabad.
Challenges and Opportunities
While the grants provide a lifeline, startups face challenges like complex compliance requirements and limited access to skilled talent. The UP government is addressing these through workshops and partnerships with universities to train 50,000 students in emerging technologies by 2026. The state’s focus on Tier-II and Tier-III cities is also fostering inclusive growth.
Disclaimer: This article is based on recent reports, government announcements, and industry insights available as of September 2, 2025. Information is sourced from credible platforms like Startup India, NASSCOM, and news outlets. Readers are advised to verify details through official government portals for the latest updates.