Revised policy increases grants, seed capital, and deep-tech funding as the state seeks to strengthen its startup ecosystem.
The Uttar Pradesh Startup Policy 2026 has now reportedly expanded the financial support available to startups with provisions aimed at improving access to capital across different stages of a venture’s development. The revised framework includes matching grants for startups that secure institutional funding, greater support for early-stage ventures, and a dedicated funding window for deep-tech businesses.
Under the policy, startups that receive financial assistance from recognized national or international institutions can qualify for a matching grant of up to 50% of the amount raised, subject to a maximum of ₹5 crore. The provision is intended to provide additional capital for business expansion and investment.
Deep-tech gets dedicated funding.
A significant part of the revised policy is focused on startups working in emerging technology areas. These include artificial intelligence, robotics, quantum technology, space technology, semiconductors and biotechnology.
Eligible deep-tech startups can receive prototype assistance of up to ₹20 lakh and seed funding of up to ₹30 lakh. The policy also provides for a ₹100-crore patient capital window for such ventures. In addition, the government plans to offer matching support of up to 40% for eligible research and development activities. The emphasis on patient capital is particularly relevant for deep-tech companies, where product development and commercialization can require longer investment cycles than conventional startups.
Higher grants for early-stage founders.
The policy has also raised the funding limits available during the early stages of a startup. The maximum prototype grant has been increased from ₹5 lakh to ₹10 lakh, while the upper limit for seed funding has risen from ₹7.5 lakh to ₹15 lakh. In special cases, seed funding may reach ₹50 lakh.
The incubation period has also been extended to two years, alongside a sustenance allowance of ₹20,000 per month for eligible startups during the same period. The revised framework includes financial assistance of up to ₹2 crore for recognized quality certifications and patent-related expenditure. This could help startups strengthen intellectual property protection and meet certification requirements as they expand.
Additional incentives have been provided for startups based in Bundelkhand and Purvanchal, as well as eligible ventures founded or co-founded by women, economically weaker sections, persons with disabilities and transgender entrepreneurs.
The state also plans to establish 20 new centres of excellence in emerging technologies and a dedicated deep-tech U-Hub. The measures are part of Uttar Pradesh’s broader effort to build infrastructure for innovation, incubation, and startup investment.
