The Indian Startup Ecosystem and Uttar Pradesh Contribution

The Indian startup ecosystem over the last 6 years, ever since the launch of the Startup India program has made great strides. We have now become the 3rd largest ecosystem in the world with more than 80,000 startups and 100+ Unicorns. 

Uttar Pradesh, the most populous state in the country has been witnessing an organic growth of startups across the state and has become 4th largest startup ecosystem in the country. The ecosystem has been catalyzed by the government’s flagship program called “Start In UP” under the ongoing UP Startup Policy 2020 which aims to build India’s largest-ever incubation network of 100+ incubators and an ecosystem of 10,000 startups. 

The state has so far registered 55 incubators, 3 Center of Excellence, and approx. 8,000 startups spread across all 75 districts of the state. The widespread coverage of districts is an important milestone very much in tune with the Hon’ble Prime Minister’s clarion call to have a startup in each block. 

Noida, Ghaziabad, and Lucknow have emerged as the Top 3 Startup ecosystems in the state accounting for more than 4000 startups, Noida holding tightly to the Numero-Uno spot, closely followed by Ghaziabad and Lucknow being the distant third.  

If we closely look at the startup growth story in Uttar Pradesh, it is largely being written in college campuses. The long list of entrepreneurs coming out of IITs and IIMs needs no introduction. Our academic institutions have played a big role in germinating the seeds of entrepreneurship in young minds with the help of faculty, researchers and the fantastic R&D infrastructure build inside the campus over several decades. The impact created by them is clearly visible in the number of startups being supported and promoted by these incubators. 

To further strengthen the ecosystem, Government has launched a novel initiative of establishing Center of excellence in emerging technologies. The first CoE was established at SGPGI Lucknow to support Medical technology, AI/ML, and drone tech CoEs at IIT Kanpur. The government has recently approved 5 more CoEs to be established in areas like Quantum Computing, SpaceTech, 5G/ 6G, Additive Manufacturing, and AR/VR. 

Startups Policy itself was recently amended by the approval of the Hon’ble Cabinet, Government of Uttar Pradesh to make it more attractive and rewarding for startups and the startup community at large. The incentives offered so far in the form of Sustenance Allowance and Seed Capital have been enhanced to INR 2.10 and 7.50 Lakhs respectively. A new Prototyping grant has also been introduced up to INR 5 Lakh for startups working to convert their idea into a Minimum Viable Product (MVP). 

Moreover, the process for disbursement of funds is also being eased to cut down on the long waiting time between approval and the actual release of the grant. 

We look forward to meaningfully engaging with all relevant stakeholders and keep improving the innovation and entrepreneurial ecosystem in the state for the greater cause of achieving the One Trillion dollar economy mark. 

Brief Profile 

Abhishek Tiwari is the Lead Advisor for the “Start In UP” Program and is responsible for the implementation of UP Startup Policy 2020 thereby nurturing a robust startup ecosystem in the state.  

Abhishek has over 20 years of experience serving clients across continents such as Europe, Africa, Asia, and the Middle East.