The Delhi government has announced plans to introduce a comprehensive startup policy with a proposed budget of ₹325 crore over the next five years, aimed at nurturing innovation and supporting up to 5,000 startups by 2035.

The announcement was made on Thursday during a government-backed startup event in the capital that focused on promoting entrepreneurship among students and young innovators. Officials said the policy is designed to strengthen the connection between educational institutions and the startup ecosystem through structured incubation, mentorship, and seed funding support.

While the broad framework of the policy has been outlined, detailed timelines for implementation and the exact funding mechanisms are yet to be finalised.

Focus on Student Entrepreneurship and Innovation

Speaking at the event, Delhi’s Minister for Education and Technical Training Ashish Sood said the proposed policy will build on existing efforts to encourage early-stage entrepreneurs.

He confirmed that the government will continue its practice of offering equity-free grants of up to ₹10 lakh to selected startups. In addition, smaller grants will be provided to a larger number of student-led ventures to help them test ideas and develop prototypes.

During the programme, officials also announced that 100 student startups had been shortlisted from more than 750 applications, highlighting growing interest in entrepreneurship among young people.

Growing Startup Ecosystem in Delhi

Government officials stated that more than 470 startups are currently being incubated through public institutions in Delhi, with estimated combined annual revenues of around ₹500–600 crore.

These startups are also creating employment opportunities, although officials acknowledged that exact job creation figures are difficult to independently verify.

The new policy aims to further expand this ecosystem by providing structured support at multiple stages of a startup’s journey—from ideation and product development to market access and scaling.

Challenges Remain for Long-Term Success

India has witnessed rapid growth in the number of registered startups over the past decade, supported by digital adoption and initiatives like Startup India. However, experts caution that a high number of startups does not automatically translate into sustainable businesses.

Many founders continue to face hurdles such as limited access to funding, regulatory challenges, and difficulties in reaching customers. While government grants and incubation programmes help reduce entry barriers, long-term success often depends on private investment and market demand.

A policy roundtable held alongside the event discussed these challenges, with participants emphasizing the need for easier access to capital, better mentorship networks, and stronger industry linkages.

Alignment with National Initiatives

Officials said the proposed Delhi Startup Policy is aligned with national programmes such as Startup India and Skill India, and is aimed at creating a more supportive environment for innovation and job creation in the capital.

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Once implemented, the policy is expected to play a key role in encouraging entrepreneurship, particularly among students and first-time founders, and positioning Delhi as a stronger hub for technology and innovation.

The government said further details of the policy will be released in the coming months after consultations with industry stakeholders and academic institutions.

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