Entrepreneur

Delhi Approves ₹400 Crore Startup Policy

By Rajesh Gupta | Published July 17, 2026

Delhi Approves ₹400 Crore Startup Policy

The new policy aims to boost incubation, mentorship, and funding to strengthen the capital's innovation ecosystem.

The Delhi Cabinet has officially approved a new ₹400 Crore Startup Policy designed to accelerate the capital's growth as a major innovation hub in South Asia. The initiative aims to provide direct financial grants, build state-of-the-art incubation spaces, and facilitate institutional mentorship for early-stage entrepreneurs.

A unique pillar of this policy is its tie-ups with leading local universities, including Delhi Technological University (DTU) and Netaji Subhas University of Technology (NSUT), to support student-led ventures straight out of campus.

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Strategic Allocation of the ₹400 Crore Fund

The capital will be deployed across multiple startup support verticals over the next three fiscal years.

| Policy Pillar | Allocated Budget | Key Target Benefit | |---|---|---| | Seed Grants | ₹120 Crore | Direct equity-free funding up to ₹10 Lakh per startup | | Incubation Infrastructure | ₹150 Crore | Setting up 5 high-tech incubators with makerspaces | | Interest-Free Loans | ₹80 Crore | Working capital loans for scaling B2B/SaaS startups | | University Tech Funds | ₹30 Crore | Supporting student innovation and campus spin-offs | | Mentorship & Admin | ₹20 Crore | Global accelerator partnerships and legal aid |

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Supporting Non-Traditional Sectors

While Delhi-NCR has historically been a hub for consumer tech and e-commerce giants, the new policy actively prioritizes non-traditional deep-tech sectors:

- Electric Vehicle (EV) Tech: Supporting clean-energy charging software and local battery swapping networks. - Urban Tech: Solutions addressing air quality, waste management, and traffic optimization. - SaaS and AI Platforms: Software tooling helping traditional small businesses digitize their workflows.

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Accelerating Campus Entrepreneurship

By focusing heavily on university tie-ups, the government hopes to catch startup talent early. Under the program, college students can apply for a "Startup Sabbatical," allowing them to take a year off to work on their business idea while retaining their university enrollment status.

"Delhi has the talent, the institutions, and the market. This policy provides the final catalyst—capital and physical space—to help young founders build global companies from our capital city," said a senior government spokesperson.

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