New Delhi, August 25, 2025 – The Delhi government has unveiled its forward-looking Draft Startup Policy 2025, anchored around a ₹200 crore Delhi Startup Venture Capital Fund (DSVCF) and an ambitious goal to foster 5,000 startups by 2035. This landmark initiative positions Delhi to compete assertively with established innovation hubs like Bengaluru, Mumbai, and Hyderabad, offering unprecedented financial incentives, streamlined governance, and focused support for emerging technology sectors.
Strategic Positioning in India’s Innovation Landscape
Delhi’s policy is designed to leverage the city’s unique assets, including access to government, a concentration of major corporate headquarters, and superior North India connectivity, while proactively addressing persisting challenges such as high real estate costs, complex bureaucracy, and limited early-stage funding. By systematizing support and deploying substantial government capital, Delhi aims to eliminate barriers and bolster its competitive edge in the national startup arena.
“This policy demonstrates Delhi’s resolve to become India’s next leading startup destination. We are creating not just incentives, but an entire ecosystem that capitalizes on our capital city’s strengths,” said a senior government official involved in the policy’s development.
Comprehensive, Future-Ready Sector Coverage
The new policy highlights 18 priority sectors, balancing proven Indian strengths with global trends:
- Next-Generation Technologies: Artificial Intelligence, Machine Learning, AR/VR, IoT, robotics, drones
- Established Growth Sectors: SaaS, fintech, gaming, biotechnology
- Sustainable Innovation: Green technology, supply chain/logistics, e-waste management
- Service Sector Evolution: Healthtech and hospitality, building upon Delhi’s leadership in healthcare and business tourism
The framework is inherently flexible, allowing the inclusion of new sectors as technologies and market needs evolve.
Robust Financial & Operational Support
At its core, the policy features the ₹200 crore DSVCF, structured to provide:
- Early-Stage Equity: Direct funding for idea-stage and pre-revenue ventures to bridge the early-stage gap
- Growth Capital: Follow-on support for scaling startups to ensure continuity and lasting growth
- Sectoral Allocations: Balanced investments prevent sectoral over-concentration
The fund’s patient capital supports long-term, transformational growth, especially benefiting deep-tech ventures.
Alongside capital, the policy delivers:
- Workspace Reimbursement: Up to ₹10 lakh annually for three years to ease real estate costs and extend early operational runway
- IP Protection: Full reimbursement (₹1 lakh domestic, ₹3 lakh international) for patents, trademarks, and copyrights
- Global Market Access: Up to ₹10 lakh in support for exhibition participation to encourage international expansion
- Operational Stability: ₹2 lakh per month for one year to cover critical startup costs
Streamlined Governance for Effective Execution
Learning from previous initiatives, the policy is underpinned by strong governance:
- Startup Task Force: Private sector-led body providing strategic oversight and steering sectoral updates
- Nodal Agency: Single-window entity streamlining government support and interaction for founders
- Monitoring Committee: Senior oversight group dedicated to ensuring targets are met and results are delivered
- Unified Digital Platform: Centralized portal for all applications and communication, enhancing transparency and ease-of-use
Driving an Inclusive Ecosystem
Delhi’s policy sets a new benchmark for diversity and inclusion:
- Women Entrepreneurs: Dedicated funds, mentorship, and community networking to close gender gaps
- Young Innovators: Support for students and recent graduates, nurturing academic talent into entrepreneurial activity
- Marginalized Groups: Enhanced financial and mentorship access, ensuring broader ecosystem participation
This approach widens the founder pipeline, catalyzes inclusive growth, and strengthens Delhi’s socioeconomic fabric.
Projected Economic Impact
By scaling from the current 300–500 startups to 5,000 by 2035, the policy is expected to:
- Create 75,000–250,000+ direct jobs and significant indirect employment
- Unlock over ₹1 lakh crore in economic value if even 1% of startups achieve unicorn status
- Generate substantial tax revenues, yielding a positive return on public investment within 7–10 years
- Drive innovation spillovers that benefit academia, corporates, and allied sectors
Public Engagement and Next Steps
The draft policy is open for public feedback via the Delhi Industries Department website, where stakeholders can review technical documentation and participate in consultation sessions. The finalized policy is set for release later this year and will include a robust framework for monitoring and adaptive refinement as results emerge.
Conclusion:
Delhi’s Draft Startup Policy 2025 heralds a new chapter for the capital, a bold move towards a digitally empowered, inclusive, and globally competitive startup environment. Its success will rest on effective execution, active collaboration, and meaningful engagement with India’s diverse and dynamic entrepreneurial community.
To review the full policy and submit feedback, visit the Delhi Industries Department’s official portal.