UP Startup Policy: startup grants and allowances
A programme by Government of Uttar Pradesh
Cash support for early startups from the Department of IT & Electronics: a monthly sustenance allowance up to prototype stage, a one-time prototype grant, seed capital and a matching grant for startups that raise outside funding.
At a glance
| Best for | Early-stage startups incorporated in Uttar Pradesh and registered on DPIIT and StartinUP. |
|---|---|
| Stage | Idea – Growth |
| Grant support | For selected startups. A place in the programme does not by itself guarantee a grant. |
About UP Startup Policy: startup grants and allowances
This is the state's main grant support for early startups, run under the Uttar Pradesh Startup Policy by the Department of IT & Electronics. The 2026 policy text pays the sustenance allowance every quarter for two years, up to prototype stage. Money goes straight to the startup's bank account after review.
What you get
- A monthly sustenance allowance for startups that have not yet reached prototype stage
- A one-time prototype grant to build your prototype or MVP
- Seed capital for MVP and launch work, with larger proposals considered case by case
- A matching grant for startups that raise outside funding
- An additional uplift on seed and prototype grants for women-led, Divyangjan-led, Transgender-led and EWS-led startups, for startups registered in Purvanchal or Bundelkhand, and for selected sectors. The 2026 policy sets the women-led threshold at 51% shareholding, while the older policy still shown on the StartinUP site says more than 26% equity
- Payment in tranches
Who can apply
- Startups incorporated in Uttar Pradesh, registered both on DPIIT and on the StartinUP platform
- Startups incubated at a recognised incubator and recommended by it; scaling-stage startups are treated differently, so check the current rules before you assume either way
- Software startups that only build basic websites or simple apps are excluded from the prototype grant
How selection works: A sector-specific expert committee reviews your proposal, the nodal agency recommends it and the Policy Implementation Unit approves it.
How to apply: Register on the StartinUP portal, which is moving to the UP Startup Mission platform, and apply at the stage you are actually at, with your incubator's recommendation. Policy support line: 0522-4130303, Ext. 302, or info@itpolicyup.gov.in.
Where to apply
Other Government of Uttar Pradesh programmes
- UP Startup Policy: reimbursements and interest subventionCost reimbursements rather than grants: accelerator programme participation, quality certification and patent filing, interest on term loans, and employer PF and ESI contributions.
- UP Startup Policy: deep-tech startup supportA heavier tier for deep-tech startups recommended by a Centre of Excellence or innovation hub: enhanced prototype and seed assistance, an R&D matching grant, cloud and compute reimbursement, and patient capital for a few startups a year.
- UP Startup Policy: free incubationTwo years of free incubation at StartinUP-recognised incubators and Centres of Excellence.
- UP Startup Policy: Startup Week and Grand ChallengesRecurring state events that pay winners: Startup Week proof-of-concept work orders in selected sectors, and Grand Challenges grant-in-aid for scaling-stage startups.
- UP Startup Fund (fund of funds)A state fund of funds that invests in venture 'daughter funds' rather than in startups directly. A founder pitches the funds it backs, not the fund itself.
- UP MSME Promotion Policy: capital subsidy, interest subsidy and guarantee feeThe MSME department's package for new micro, small and medium units: an investment promotion capital subsidy, an interest subsidy for new micro enterprises, stamp-duty relief and the state paying the one-time CGTMSE guarantee fee on collateral-free loans.
- UP MSME Promotion Policy: EPF, quality, patent and ERP reimbursementsReimbursement lines in the same MSME policy: employer EPF, quality certification, patent and GI filing, ERP and ICT adoption, and part of the cost of raising equity on a stock exchange.
- UP Industrial Investment & Employment Promotion PolicyThe Industrial Development department's package for large projects: stamp-duty relief, a capital subsidy or net SGST reimbursement, a top-up on central PLI incentives, and IP registration reimbursement.
- UP IT and ITeS PolicyThe IT & Electronics department's package for IT and ITeS units setting up or expanding in Uttar Pradesh: capital subsidy, interest subsidy, certification reimbursement and a course-fee reimbursement for UP-domiciled candidates.
- UP Food Processing Industry PolicyThe Horticulture department's package for food processing units, including a capital subsidy for new and expanding units and technology support for food-processing startups in the agri value chain.
- UP Textile and Garmenting PolicyThe Textile directorate's package for textile and garment units: a capital subsidy on plant and machinery, an employment subsidy for large garmenting units, and extra support in Poorvanchal and Bundelkhand.
- UP Warehousing and Logistics PolicyUPSIDA's package for warehouses, cold chains, silos and other logistics infrastructure: a capital subsidy on storage facilities plus stamp-duty and land-use relief.