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The startup ecosystem in India has experienced remarkable growth in recent years, fueled by supportive policies and a wave of entrepreneurship. Launched on January 16, 2016, the Startup India initiative by the Government of India set out to create a nurturing environment for startups, enabling innovation and fostering investment in a robust ecosystem. With over 1.4 lakh registered startups nationwide, the movement has ignited an entrepreneurial spirit that has taken root in every corner of the country. As of mid-2024, India hosts over 140,800 recognised startups, spanning sectors from technology and finance to healthcare and education. Government initiatives, increased internet penetration, and a cultural shift towards entrepreneurship have fueled this expansion.

Among these regions, Uttar Pradesh (UP) has emerged as a standout state, with nearly 9% of all startups across India based there, as shared by the Union Minister of State for Commerce and Industry, Jitin Prasada, in a recent session of the Rajya Sabha. The Uttar Pradesh government has allocated Rs 1,000 crore to the UP Startup Fund to support innovative business ventures and boost the startup ecosystem. Of 108 unicorns in India, UP accounts for eight — Paytm, Paytm Mall, India Mart, Moglix, Pine Labs, Innovaccer, InfoEdge, and Physics Wallah. With startups spread across all 75 districts, the state has achieved its goal of establishing 10,000 startups by mid2023, surpassing the original target of 2025.

The rise of uttar pradesh in india’s startup landscape

As of the latest official data, Maharashtra leads with 25,044 registered startups, followed by Karnataka with 15,019, Delhi with 14,734, Uttar Pradesh with 13,299, and Gujarat with 11,436.

This remarkable growth in UP’s startup ecosystem is a testament to the state’s proactive measures in fostering a business-friendly environment. Recognizing the potential of startups to drive economic growth and job creation, the Uttar Pradesh government has implemented various policies and programs to support entrepreneurs and establish the state as a hub for innovation.

The state’s comprehensive StartInUP program aims to establish a world-class startup ecosystem by developing robust infrastructure, ensuring policy support, and promoting innovation across sectors. Its ambitious goals include establishing 100 incubators, one in each district, creating one million square feet of incubation and acceleration space, supporting the growth of 10,000 startups (achieved before the deadline), and establishing eight Centers of Excellence (CoEs) in high-potential areas.

Policy Initiatives and Support

Uttar Pradesh Startup Policy: The state has introduced policies to promote startups, offering incentives like seed funding, tax exemptions, and infrastructural support to nurture innovation and entrepreneurship.

MYUVA Scheme: Launched in early October 2024, the Mukhyamantri Yuva Udyami Vikas Abhiyan (MYUVA) scheme aims to empower young entrepreneurs by providing interest-free loans of up to ₹5 lakh, targeting the development of one lakh young entrepreneurs annually.

Industry Status for IT-ITES Sector: In a strategic move to attract global tech companies, the Uttar Pradesh government has granted industry status to the IT and ITenabled services sector, enabling these companies to acquire land at industrial rates and bolster UP’s position as a leading IT hub in North India.

Infrastructure and Ecosystem Development

Uttar Pradesh International Trade Show (UPITS): Events like UPITS 2024 have been instrumental in showcasing the state’s industrial prowess, providing a platform for entrepreneurs to network, explore partnerships, and access new markets.

Semiconductor Fabrication Plant: In September 2024, India and the US signed a deal to establish a semiconductor fabrication plant in Jewar, Uttar Pradesh. This cuttingedge facility, named ‘Shakti’, will be the first of its kind in India, marking a significant milestone in the country’s technological advancement.

Educational and Skill Development

Higher Education Incentive Policy 2024: Aimed at attracting private investment in higher education, this policy seeks to enhance the quality and accessibility of higher education in UP, thereby creating a more skilled workforce to support the startup ecosystem.

Access to Funding and Markets

Startup Sangam 2024: Initiatives like Startup Sangam have provided incubation support to startups in sectors such as AI, robotics, and healthcare, fostering innovation and technological advancement in the state.

Uttar Pradesh Startup Fund: The state has established a dedicated startup fund to provide financial assistance to emerging entrepreneurs, facilitating access to capital and resources necessary for scaling their ventures.

Empowering Startups in tier 2 and 3 cities

In a move to decentralize startup growth, UP has focused on empowering entrepreneurs in Tier 2 and Tier 3 cities, with nearly half of the state’s startups emerging from these areas. By fostering innovation outside of major urban centres, the state is enabling economic growth across all 75 districts. This expansion has created around one lakh jobs in the state, underlining the significant role startups play in boosting local economies and supporting livelihood opportunities.

UP’s efforts extend to developing agri-tech startups that address challenges in rural communities, such as low crop yields, inadequate food processing, and wastage. The state government has allocated ₹1,000 crore to the UP Startup Fund to support startups in emerging sectors, including AI, drones, med-tech, blockchain, 5G and 6G, quantum computing, additive manufacturing, and space technology.

From Unicorns to Soonicorns: up’s Evolving Startup Ecosystem

UP has also distinguished itself by producing successful startups with high valuations, including eight unicorns — startups valued at over $1 billion — such as Paytm, IndiaMart, Innovaccer, and Physics Wallah. Additionally, Class Plus and InShorts, two “Soonicorns” (startups close to achieving unicorn status), showcase the future potential of UP’s startup ecosystem. Beyond unicorns and soonicorns, UP’s ecosystem includes a diverse range of “Minicorns,” startups valued at over $1 million, which are contributing significantly to the state’s innovation landscape.

Notable Startup in Uttar Pradesh

Paytm: Originating from Noida, Paytm has become a leading digital payment platform in India, offering services ranging from mobile recharges to financial products.

SquadStack: Based in Uttar Pradesh, SquadStack provides AI-driven sales and customer engagement solutions, assisting businesses in optimizing their operations.

Also Read :- Uttar Pradesh Emerges as India’s Next GCC Powerhouse

A hub for International Exposure and it Development

UP has been proactive in providing its startups with global exposure. For instance, more than 10 UP-based startups were showcased at the Dubai Expo, where they connected with international investors and entrepreneurs to attract funding. The state is also positioning itself as an IT hub, with HCL’s largest development centre being established in UP, signalling the growing interest of major technology companies in the region.

In line with its goal of becoming a national leader in the IT sector, UP has also initiated the setup of four state-of-theart Centers of Excellence. The state’s Electronics Corporation Limited (UPECL) has played a pivotal role in attracting investments and building an international network for UP’s startups. According to Ujjwal Kumar, Managing Director of UPECL, the government’s efforts to facilitate exposure and access to capital for local entrepreneurs are key drivers of the state’s thriving ecosystem.

Healthcare Innovation: Gims Startup centre for Medical Innovation

One of UP’s groundbreaking initiatives is the GIMS Startup Centre for Medical Innovation in Greater Noida, the state’s first hospital-based incubator. This public-sector incubator, based at the Government Institute of Medical Sciences (GIMS), aims to bridge the gap in the medical device ecosystem by fostering healthcare innovation. Headed by Dr. Rahul Singh, the Centre focuses on helping startups develop affordable, cutting-edge medical devices to reduce dependence on imports and to facilitate the clinical validation of domestically produced technologies.

AGRI-Tech based Startup

The state is witnessing the emergence of agri-tech-based startups, contributing to rural infrastructure development and job creation. The state government has already allocated ₹1000 crore to the U.P. Startup Fund and established 63 incubation centres across 23 districts. The state’s vast and diverse agro-climatic zones make it an ideal ground for implementing innovative agricultural technologies. With a focus on improving productivity, sustainability, and profitability, UP is steadily becoming an emerging hub for agri-tech advancements.

Up’s Vision for the Future of Startups

The future of UP’s startup ecosystem appears promising. With a mission to develop a self-sustaining, innovation-driven economy, the state’s initiatives are grounded in creating a supportive policy environment, building infrastructure, and fostering partnerships. In the next few years, UP aims to become a model state for entrepreneurial growth, innovation, and technologydriven development.

The establishment of incubation centres, the focus on healthcare and agri-tech innovation, and international exposure opportunities for local startups all position UP as a leader in India’s startup journey. With support from both the state and central governments, as well as private sector partnerships, UP is well on its way to realizing its ambitious vision of a globally competitive, vibrant startup ecosystem.

The road ahead: challenges and Opportunities

While UP has made remarkable strides, challenges remain. The state faces issues related to policy implementation, bureaucratic hurdles, and infrastructure development, which can hinder the rapid scaling of startups. In response, the government has demonstrated its willingness to work collaboratively with industry stakeholders to refine policies and enhance the technology ecosystem.

The State Startup Ranking, an initiative by the Government of India to rank states based on their startup support systems, has spurred UP to set ambitious goals, such as ranking among the top three states. The StartInUP policy also outlines the establishment of India’s largest incubator in Lucknow, setting a new benchmark for infrastructure support.

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