Nurturing Startups in Uttar Pradesh: Key Policies and Support Schemes

Fostering Innovation and Growth: A Deep Dive into Uttar Pradesh's Strategic Support for Startups

Uttar Pradesh has established a comprehensive framework to support startups through various policies and schemes, aiming to foster innovation and entrepreneurship in the state. The Uttar Pradesh Startup Policy 2020, with its first amendment in 2022, serves as a cornerstone for these initiatives. This policy outlines specific incentives, goals, and support structures designed to create a conducive environment for startups.

Key Objectives of the Uttar Pradesh Startup Policy 2020:

The primary goals of the policy include:

• Ranking Improvement: Aim to be among the top three states in the "States' Startup Ranking" conducted by Startup India.
• Incubator Establishment: Establish a minimum of one incubator in each district, totaling 100 incubators across the state.
• Infrastructure Development: Develop at least one million square feet of incubation and acceleration space.
• Ecosystem Creation: Create an ecosystem that supports at least 10,000 startups.
• Centers of Excellence: Establish eight state-of-the-art Centers of Excellence (CoEs).
• Largest Incubator: Set up India's largest incubator in Lucknow.

Incentives for Startups:

The policy provides a variety of financial incentives aimed at supporting startups at different stages of their development:

• Sustenance Allowance: Startups at the idea stage can receive an allowance of INR 17,500 per month for up to one year, limited to 25 startups per incubator annually.
• Prototype Grant: Up to INR 5 lakhs is available for startups to develop their Minimum Viable Product (MVP).
• Seed Capital/Marketing Assistance: Startups can access marketing assistance up to INR 7.5 lakhs to help launch their MVP in the market.
• Patent Filing Reimbursement: Costs for filing patents are reimbursed—INR 2 lakhs for Indian patents and INR 10 lakhs for international patents.
• Event Participation Support: Startups can receive reimbursements for participating in events, with up to INR 50,000 for national and INR 1 lakh for international events.

Additional Support for Specific Groups:

The policy emphasizes inclusivity by offering additional benefits:

• Startups with women, transgender, or Divyangjan co-founders holding more than 26% equity are eligible for an additional 50% on sustenance allowance and seed capital.
• Startups operating in economically weaker regions or founded by individuals from economically weaker sections also receive enhanced support

Support for Incubators:

To bolster the startup ecosystem, the policy includes provisions for incubators:

• Financial grants up to INR 1 crore are available for setting up or scaling technology infrastructure.
• Operational support of up to INR 30 lakhs per year is provided for five years or until self-sustainability is achieved.

Other Government Schemes Supporting Startups:

In addition to the Uttar Pradesh Startup Policy, several national schemes complement these efforts:

1. Startup India: Launched in 2016, it offers funding, mentorship, and resources to promote innovation.
2. Atal Innovation Mission: Focuses on fostering an innovative mindset among youth through funding and mentorship.
3. Pradhan Mantri Mudra Yojana: Provides loans up to INR 10 lakhs for small enterprises.
4. Credit Guarantee Fund Scheme: Aims to provide collateral-free loans to micro and small enterprises.

The policies and schemes implemented by the Uttar Pradesh government reflect a robust commitment to nurturing startups within the state. By providing financial incentives, infrastructural support, and fostering an inclusive environment, Uttar Pradesh aims to enhance its position as a leading hub for innovation and entrepreneurship in India.