UP Startup Policy 2026: Rs 15 Lakh Seed Fund Approved

The 2026 Startup Policy has been approved by the Uttar Pradesh Cabinet to boost the State’s business and technology sectors. These new rules help in raising the seed funding amount to Rs 15 lakh for new businesses and will also offer a monthly allowance of Rs 20,000 for two years to pay for their daily needs while they build their business. 

The new Startup Policy 2026 was approved by the Uttar Pradesh Cabinet, led by CM Yogi Adityanath, along with the Uttar Pradesh Startup Mission. This new policy aims to turn Uttar Pradesh into a new top global business hub. This will help in creating jobs, encouraging youth to execute their new ideas and building a one-trillion-dollar economy, a figure the Yogi Adityanath-led government has been chasing for years.

Previously, the government gave new businesses up to Rs 7.5 lakh in startup funding. The new plan doubles this help. Now, new businesses can get up to Rs 15 lakh to start their ideas. In special cases, this money can go up to Rs 50 lakh. The government also raised the monthly allowance given to business owners. 

The government is also focusing heavily on new technology. Startups working on Artificial Intelligence (AI), robotics, deep-tech, and health-tech will get extra benefits. For instance, prototype grants have been increased to Rs 10 lakh. Cloud hosting costs of up to Rs 2 lakh per year will also be refunded to help young tech companies manage their digital tools.

Also Read: PFC-REC Merger Approved: New ₹11 Lakh Cr NBFC Giant 

To fund these massive changes, the state has created a special Rs 1,000-crore Startup Fund. Officials are setting up this money to help founders find investors and get early-stage cash easily. Furthermore, the government is establishing special areas called U-Hubs in major cities such as Noida and Lucknow to support deep-tech research and local talent.