Delhi government has outlined plans for a new startup policy with a proposed outlay of ₹325 crore over five years, aimed at supporting up to 5,000 startups by 2035, though detailed implementation timelines and funding mechanisms have yet to be specified.
The announcement was made on Thursday at a government-backed startup event in New Delhi focused on student entrepreneurship. Officials said the policy is intended to strengthen links between educational institutions and markets through incubation support, mentorship and seed funding.
According to the government, more than 470 startups are currently being incubated through public institutions in Delhi, with officials estimating combined revenues of ₹500–600 crore. Officials also said these ventures generate several jobs per startup, although independent verification of these figures is not available.
Ashish Sood, Delhi’s minister for education and technical training, said the policy would continue the government’s practice of offering equity-free grants of up to ₹10 lakh to selected early-stage startups, alongside smaller grants for a broader group of student-led ventures.
At the event, officials announced a shortlist of 100 student startups selected from more than 750 applications.
India has seen rapid growth in the number of registered startups over the past decade, driven by digital adoption and government recognition programmes.
However, many founders note that high startup counts do not necessarily translate into sustainable businesses, with many ventures struggling to scale amid funding constraints, regulatory complexity and uneven market access.
Government-supported incubation and grant schemes have helped lower entry barriers for first-time founders, but long-term outcomes depend largely on private investment, customer demand and the ability of startups to survive beyond early funding stages.
A policy roundtable held alongside the event discussed challenges faced by startups at different stages of growth, including access to capital and execution hurdles. The government said the proposed policy is aligned with national programmes such as Startup India and Skill India.
