Delhi New Startup Policy Push: ₹200 Cr Fund, 5,000 Ventures by 2035

Delhi is gearing up for a bold entrepreneurial leap. In a city already buzzing with ideas and ventures, the Rekha Gupta-led government has set its sights on transforming the national capital into a global innovation hub. The newly released draft of the Delhi Startup Policy 2025 lays out an ambitious roadmap: 5,000 new startups by 2035, powered by a dedicated ₹200 crore venture capital fund and a bouquet of fiscal incentives.

At first glance, this isn’t just another government policy document. It’s a blueprint that aims to shape Delhi’s identity as a startup powerhouse—placing innovation, inclusivity, and sustainability at its core.

Delhi Startup Policy Draft

Delhi, already known for its thriving entrepreneurial culture, has been steadily climbing the ranks as a hub for new-age businesses. From fintech disruptors to AI-led ventures, the city has witnessed an explosion of ideas over the past decade. The new draft policy seeks to double down on this momentum.

According to the document, the mission is crystal clear, “To encourage, facilitate, and support the emergence of at least 5,000 startups by 2035. To enable entrepreneurship that drives sustainable and inclusive socio-economic development across the state.”

The government believes that Delhi’s unique mix of proximity to central institutions, strong infrastructure, and young entrepreneurial energy makes it perfectly positioned to lead India’s innovation story.

The Backbone: A ₹200 Cr Venture Capital Fund

The centerpiece of the policy is the creation of the Delhi Startup Venture Capital Fund, a ₹200 crore corpus designed to bridge one of the biggest gaps startups face—access to capital.

The fund, backed by the government, will offer early-stage startups a crucial lifeline, helping them not just survive but scale. For founders struggling with investor confidence or bootstrapping challenges, this move could change the game.

18 Key Focus Areas

The 10-year policy has identified 18 sectors that will receive priority support. These include both traditional industries and futuristic technologies:

• Healthcare services, hospitality, fintech, automotive enterprises, e-waste management, logistics & supply chain, gaming, green technology, robotics

• AI, Machine Learning, IoT, SaaS, Biotechnology, Augmented Reality, drones, and UAVs

Interestingly, the draft also leaves the door open for adding more focus areas in the future, based on market demand and technological shifts. This flexibility ensures that Delhi doesn’t fall behind in fast-changing global trends.

Incentives That Make Founders Look Twice

Money is only part of the story. The draft policy also rolls out a series of founder-friendly incentives:

• 100% reimbursement of workspace lease rentals up to ₹10 lakh per year for three years

• Full reimbursement for patents, trademarks, copyrights, and designs (₹1 lakh for Indian filings, ₹3 lakh for international)

• Exhibition support: ₹5 lakh for domestic and ₹10 lakh for international participation

• Monthly allowance of ₹2 lakh for one year to cover operational costs

For young founders or bootstrapped teams, these benefits could significantly ease the cost burden of starting up in a high-expense city like Delhi.

Virtual Incubation & Startup Task Force

Beyond financial support, the government wants to ensure startups have access to mentorship, incubation, and networks. The policy proposes:

• A virtual incubation service through the Delhi Incubation Hub, connecting founders with experts and mentors

• Partnerships with industry bodies to host startup festivals, giving startups a platform to showcase innovations globally

• A Startup Task Force, which will evaluate applications and disburse benefits through a single-window system

This structured approach signals the government’s intent to not just announce a policy but actively nurture its execution.

A Push for Women Entrepreneurs

A noteworthy aspect of the draft is its focus on women entrepreneurship. Recognizing the barriers women face in accessing networks and capital, the policy commits to targeted initiatives.

“Women entrepreneurship can make a particularly strong contribution to the economic well-being of families and communities,” the draft notes, tying the move to larger developmental goals such as the Millennium Development Goals (MDGs).

By positioning women-led businesses at the heart of its growth strategy, the Delhi government is aligning with a global movement that views inclusive entrepreneurship as key to balanced growth.

Monitoring, Accountability & Global Aspirations

Unlike many policies that fade into obscurity after their launch, this draft builds in mechanisms for accountability. The Startup Task Force will review progress every two years, releasing status reports to assess ease of implementation and actual impact.

The emphasis on biennial reviews, state-of-the-art infrastructure, and global integration suggests that Delhi isn’t just thinking local—it’s preparing to compete globally.

India’s startup story has so far been dominated by Bengaluru, Mumbai, and Hyderabad. But Delhi, with its political clout, talent pool, and growing appetite for innovation, has long been a contender.

With this draft policy, Delhi is making its strongest pitch yet: a vision backed by money, mentorship, and inclusivity. If executed well, the 5,000 startups by 2035 goal could not only reshape Delhi’s economic landscape but also add significant momentum to India’s ambition of becoming the world’s largest startup hub.

The draft is now open for stakeholder feedback—a sign that the government wants this to be a collaborative, bottom-up framework. For the founders building in Delhi, the next decade may just be the most exciting one yet.