Uttar Pradesh govt sets aside Rs 4,000 crore as state's start-up corpus

Underscoring the importance of start-ups for employment generation and economic activity, the Uttar Pradesh government is set to inject Rs 4,000 crore into the state’s start-up corpus. The fresh infusion of capital has been made to constitute the maiden ‘UP Innovation Fund’ that will be mandated to provide seed capital to start-ups.

UP chief minister Yogi Adityanath has directed officials to create the fund to cater to the needs of start-up ventures proposed by the state’s youth.
 

“The UP Innovation Fund would promote such start-ups, which are predominantly focussed on the state,” Adityanath said. He added that initial funding was imperative for the successful journey of any start-up.

He noted the UP government has consistently been taking policy-level decisions to ensure that the start-up ecosystem was fed with easy financing.

“As a result of innovative thinking and creative outlook of the youth, a large number of successful start-up ventures have been incorporated in recent years,” the CM added.
 

Earlier, the Yogi government had created an angel fund of Rs 1,000 crore with a target of setting up almost 10,000 start-ups in the state.

Together with the Rs 4,000 crore of the UP Innovation Fund, the aggregate state government support for start-ups stands at Rs 5,000 crore. Meanwhile, the state government is drafting guidelines for the proposed innovation fund so that only eligible start-ups could avail of funding in a time-bound and transparent manner.

The major sectors, which are likely to benefit, include IT/ITeS, software, education, agriculture, medical, industry and e-commerce etc.

According to the state government, merely 26 start-ups were registered in UP till 2016. However, the number has risen to more than 6,650 in 2022. Noida, Ghaziabad and Lucknow account for the maximum number of start-ups in UP.

Meanwhile, the state government is also setting up a network of start-up incubators in the domains of fintech, education, health, agriculture, textile and IT. The incubators will not only promote start-ups, but usher in employment opportunities and attract fresh private investment.