The Startup Revolution in Uttar Pradesh Is Fuelling India's Innovation Boom

Nitin Konde, Varun Bhardwaj

Jan 10, 2025 — 3 min read

Uttar Pradesh’s Startup Revolution Drives India’s Innovation Boom

In a recent Rajya Sabha session, Union Minister of State for Commerce and Industry Jitin Prasada revealed that Uttar Pradesh (UP) has become a notable state, home to about 9% of all startups in India. To encourage creative business endeavours and strengthen the startup ecosystem, the Uttar Pradesh government has contributed INR 1,000 crore to the UP Startup Fund. Paytm, Paytm Mall, India Mart, Moglix, Pine Labs, Innovaccer, InfoEdge, and Physics Wallah are eight of the 108 unicorns in India that are based in Uttar Pradesh. With firms dispersed throughout all 75 districts, the state has surpassed its initial 2025 target and established 10,000 startups by mid-2023.

Growth of Startup Sector Reflects State’s Proactive Measures

This impressive expansion of UP's startup scene is evidence of the state's proactive efforts to create an atmosphere that is conducive to business. The Uttar Pradesh government has put in place a number of laws and initiatives to assist entrepreneurs and position the state as an innovation hub because it recognises the potential of startups to spur economic growth and job creation.

Through the creation of strong infrastructure, guaranteeing policy support, and encouraging innovation across industries, the state's extensive StartInUP program seeks to create a world-class startup ecosystem. Creating one million square feet of incubation and acceleration space, supporting the growth of 10,000 companies (achieved before the deadline), building eight Centres of Excellence (CoEs) in high-potential regions, and constructing 100 incubators—one in each district—are just a few of its ambitious objectives.

Supporting New Businesses in Tier 2 and Tier 3 Cities

With almost half of the state's startups originating from Tier 2 and Tier 3 cities, UP has concentrated on empowering entrepreneurs in these areas in an effort to decentralise startup growth. The state is facilitating economic growth in all 75 districts by encouraging innovation outside of large urban hubs. Around one lakh jobs have been created in the state as a result of this expansion, demonstrating the important role entrepreneurs play in fostering livelihood possibilities and enhancing local economies.

UP is working to create agri-tech companies that tackle issues including low agricultural yields, poor food processing, and waste in rural areas. To assist businesses in cutting-edge fields including artificial intelligence (AI), drones, medical technology, blockchain, 5G and 6G, quantum computing, additive manufacturing, and space technology, the state government has donated ₹1,000 crore to the UP Startup Fund.

Drafting Policies that Further Fuel the Growth

In order to encourage innovation and entrepreneurship, the state has implemented regulations that provide incentives like tax breaks, seed money, and infrastructure support. The Mukhyamantri Yuva Udyami Vikas Abhiyan (MYUVA) plan was introduced in early October 2024 with the goal of empowering young entrepreneurs by offering interest-free loans up to INR 5 lakh, with the goal of developing one lakh young entrepreneurs yearly. Similar to this, the Uttar Pradesh government has given the IT and IT-enabled services sector industry status in an effort to draw in multinational tech companies. This will allow these businesses to purchase property at industrial prices and strengthen UP's standing as a major IT hub in North India.

The state's industrial potential has been highlighted in large part by events like UPITS 2024, which give business owners a chance to connect, look for collaborations, and enter new markets. An agreement to build a semiconductor production plant in Jewar, Uttar Pradesh, was inked in September 2024 between the United States and India. An important turning point in India's technical development will be reached with the opening of this state-of-the-art facility, called "Shakti," which will be the first of its type in the nation.