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Founders & Career Growth17 Jul 2026· 17 Jul 2026

Delhi Greenlights Rs 400 Crore Start-Up Policy Students to Get Funding, Mentoring and Incubation Support

by Startup Unplugged4 min read
Delhi Greenlights Rs 400 Crore Start-Up Policy Students to Get Funding, Mentoring and Incubation Support
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Delhi's youth entrepreneurship push just got a major boost. The Delhi Cabinet has cleared a new Start-Up and Incubation Policy, committing more than Rs 400 crore over the next five years to encourage innovation, entrepreneurship, and self-employment among young people. Chief Minister Rekha Gupta announced the move on Thursday.

Who the Policy Covers

The policy has a fairly wide reach within Delhi's education system. It will apply across 11 state universities, 13 government-aided colleges, along with government-run ITIs and polytechnic institutions.

Notably, students from Delhi government schools will also be able to access the policy's benefits through these institutions. According to a statement from the Chief Minister's Office (CMO), students who succeed in their entrepreneurial ventures will receive direct financial assistance.

A Dedicated Monitoring Body

To keep implementation on track, the government plans to set up a State Incubation Policy Monitoring Committee (SIPMC). This panel will bring together representatives from government departments, educational institutions, industry, and the broader start-up ecosystem aimed at avoiding the execution gaps that plagued similar efforts in the past.

The government also intends to host an annual Delhi Start-up Youth Festival, designed as a meeting point for young innovators, start-ups, investors, academic institutions, industry leaders, and policymakers.

"From Job Seekers Into Job Creators"

Chief Minister Rekha Gupta framed the policy as part of a larger ambition to position Delhi as one of India's leading innovation and entrepreneurship hubs, by equipping young people with the resources needed to build viable businesses.

"This initiative is not just about helping people launch start-ups, but about transforming Delhi's youth from job seekers into job creators," Gupta said.

How the Funding Will Work

Under the new framework, eligible educational institutions will receive a one-time grant to set up or upgrade their incubation centres, followed by annual funding to run mentoring programmes, networking events, innovation activities, and other ecosystem-building initiatives.

Start-ups operating out of these incubation centres, meanwhile, will be eligible for stage-linked financial support covering everything from prototype development and proof of concept to product development, market validation, and eventual commercialisation.

Chief Minister Gupta added that the incubation centres will come equipped with modern infrastructure, expert mentorship, and access to laboratory and testing facilities, along with other support services aimed at helping ideas move from concept to market.

A Pointed Comparison to the Previous Scheme

Delhi Education Minister Ashish Sood used the announcement to take aim at the previous AAP government's start-up initiative, arguing it prioritised optics over actual execution.

"The earlier scheme started in 2021 and ended in 2022 with a budget of only Rs 22 crore. Our government has allocated Rs 400 crore for a comprehensive policy," Sood said, framing the new allocation as a far more serious, long-term commitment.

He added that the policy has been built specifically to nurture young talent and help aspiring entrepreneurs grow into future business leaders rather than serve as a short-lived, headline-driven scheme.

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