The Uttar Pradesh Cabinet has approved the Uttar Pradesh Startup Policy 2026 and the Uttar Pradesh Data Centre Policy 2026. The decisions were taken during a Cabinet meeting chaired by Chief Minister Yogi Adityanath.
The two policies aim to encourage startups, attract large investments, improve digital infrastructure, and create more jobs. They also support the state’s goal of becoming a USD 1 trillion economy.
Uttar Pradesh Startup Policy 2026: Bigger Support for Startups
The new Startup Policy offers higher financial support to startups at every stage, from idea development to business growth. IT and Electronics Minister of Uttar Pradesh, Sunil Sharma, mentioned that the monthly allowance for startups has been increased from ₹17,500 for one year to ₹20,000 per month for two years.
Prototype funding has been doubled from ₹5 lakh to ₹10 lakh, while seed funding has increased from ₹7.5 lakh to ₹15 lakh. In special cases, startups can receive up to ₹50 lakh in seed funding. The policy also provides reimbursement of up to ₹2 crore for patents and quality certifications. Startups will also get matching grants of up to ₹5 crore, a 4% interest subsidy on term loans up to ₹2 crore, and reimbursement of EPF and ESI contributions.
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Special Benefits for AI and Deep-Tech Startups
The government has announced extra support for startups working in AI, robotics, quantum technology, space technology and other advanced sectors. These startups can receive prototype funding of up to ₹20 lakh, seed funding of up to ₹30 lakh, patient capital support of up to ₹100 crore, and financial assistance for up to 40% of research and development costs.
More Support for Incubators and Innovation Centres
The policy also increases funding for startup incubators. Capital grants have been raised to ₹1.25 crore, while incubators in Purvanchal and Bundelkhand can receive up to ₹1.5 crore. Annual operational support has also been increased to ₹40 lakh.
The state will also set up 20 new Centres of Excellence (CoEs) in areas such as AI, machine learning, robotics, agritech, healthtech, and space technology. Financial support for each CoE has been increased to ₹12 crore.
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A new Startup Mission Directorate will also be created under the Department of IT & Electronics to improve coordination between startups, investors, incubators, and educational institutions. Uttar Pradesh currently has around 17,000 registered startups.
Uttar Pradesh Data Centre Policy 2026 Approved
The Cabinet has also approved the Uttar Pradesh Data Centre Policy 2026 to make the state a major hub for data centres and AI infrastructure. The policy aims to add 2 GW of new data centre capacity and attract investments of more than ₹2 lakh crore. It replaces the previous policy, which ended in January 2026.
Focus on AI Infrastructure and Green Data Centres
The new policy supports GPU-based AI infrastructure, energy-efficient data centres, and environmentally friendly operations. It also offers incentives for Tier III and Tier IV data centres, AI computing projects, and green data centres.
Additional benefits will be provided for projects in Bundelkhand and Purvanchal to promote balanced regional development. The state government expects the policy to boost cloud computing, AI, digital infrastructure, and employment while attracting global technology companies to Uttar Pradesh.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future.
