India’s startup policy landscape in 2025 has shown a shift toward building long-term technological and AI leadership at both the central and state levels. As artificial intelligence, deep tech, and digital infrastructure become critical to economic competitiveness, state governments are moving beyond generic startup incentives to deploy targeted funds, AI roadmaps, innovation hubs, and skilling programmes.
From large fund-of-funds models and decentralised incubation to AI-first public infrastructure and university-linked innovation centres, these policies signal a maturing ecosystem. Together, they reveal how Indian states are positioning themselves not just as startup destinations, but as active architects of the country’s AI-driven growth story.
Karnataka
In 2025, Karnataka reinforced its position as India’s most mature tech startup ecosystem with the approval of the Startup Policy 2025–2030, backed by an outlay of ₹518 crore. The policy aims to support 25,000 startups over five years, with a strong focus on emerging technologies such as AI, blockchain, quantum computing, and other deep tech domains. A notable emphasis is on decentralisation, with a target of nurturing 10,000 startups outside Bengaluru.
Complementing this is the state’s broader IT, SpaceTech and Startup Policy 2025-2030, which integrates digital services, space technologies, and advanced computing into a single innovation framework. Programmes like ELEVATE 2025 further strengthen early-stage support by funding idea-to-proof-of-concept journeys for technology startups, particularly in AI and frontier technologies.
Telangana
In December 2025, Telangana announced a ₹1,000 crore Startup Fund, structured as a fund-of-funds to back early- and growth-stage technology startups, with a strong emphasis on AI. The announcement coincided with the launch of India’s first Google for Startups Hub in Hyderabad, strengthening access to global mentorship and capital.
The state government has also proposed a Future City focused on technology, manufacturing, sustainability and global investment. It secured a pledge from Trump Media, which will invest up to Rs 1 lakh crore over the next decade.
The state also unveiled a dedicated AI roadmap and Telangana Artificial Innovation Hub. At the same time, existing programmes such as T-Fund and T-Spark continue to support early-stage founders, reinforcing Telangana’s position as a leading AI and deep-tech startup ecosystem.
Delhi
Delhi’s Draft Startup Policy 2025 signals a renewed effort to formalise the capital’s fragmented startup ecosystem. Central to the policy is the proposed ₹200 crore Delhi Startup Venture Capital Fund, designed to improve access to early-stage financing for technology-driven startups.
The draft policy aims to support 5,000 startups by 2035 through innovation infrastructure, mentorship, and regulatory facilitation, with a focus on 18 knowledge-intensive sectors, including AI, SaaS, and digital platforms. While still in the consultation stage in 2025, the policy reflects Delhi’s intent to actively support product-led and deep tech entrepreneurship through monthly grants of up to ₹2 lakh and reimbursements for patents, lease rentals, and fabrication labs.
Gujarat
Gujarat continued to build on its reputation as a policy-driven innovation state in 2025 by implementing the Student Startup and Innovation Policy (SSIP) 2.0. With a ₹300 crore allocation for a period of five years and deep integration across universities and technical institutes, SSIP 2.0 supports student founders working on technology-led ideas, including AI, robotics, and applied research. It offers financial grants of up to ₹2.5 lakh per student team, with the aim of supporting 10,000+ projects and 500+ grantee startups.
Alongside this, the WEStart initiative has expanded its focus on women-led startups, offering mentorship, incubation support, and access to the ecosystem. Over the last four years, the state government has supported 1,543 startups with financial assistance
Together, these initiatives position Gujarat as a state prioritising early-stage innovation pipelines and inclusive participation in technology entrepreneurship, with 16,700 startups currently operating across the state.
Uttar Pradesh
Uttar Pradesh’s startup approach in 2025 centred on infrastructure-led and cluster-based technology growth. The state government actively promoted the concept of ‘AI cities’ and digital innovation hubs, particularly across Lucknow and Noida, to attract AI startups, data-driven enterprises, and cloud infrastructure players. Parallel reforms aimed at easing business regulations were introduced to improve the investment climate for technology firms.
At the CM Yuva Conclave 2025, the state government signed 17 MoUs and disbursed ₹2,751 crore in loans to 68,000 youths. It also launched UP Mart to connect entrepreneurs with machinery, raw materials, and service providers.
The state also pushed the adoption of AI across public services, especially healthcare, where AI-enabled diagnostics and digital health platforms are being integrated through institutional partnerships.
Andhra Pradesh
In 2025, Andhra Pradesh focused on advancing skills and next-generation research ecosystems. The government introduced quantum technology and advanced computing courses in schools, with AI forming a core component of digital skills development for students.
The focus on learning and upskilling continued with the Avishkandhra 2025 initiative, focused on fostering innovation and entrepreneurship under the ‘One Family, One Entrepreneur’ theme. It offers skill development courses, mentorship and acceleration, with top ideas nurtured by the Ratan Tata Innovation Hub.
This talent-first strategy aligns with the state’s long-term quantum vision through the Amaravati Quantum Valley, a planned hub aimed at attracting global research institutions, deep tech startups, and high-end innovation in quantum and AI-adjacent fields. The emphasis is less on short-term startup incentives and more on building foundational capacity for frontier technologies.
Himachal Pradesh
Himachal Pradesh’s 2025 technology focus marked a strategic shift towards next-generation industries. The state identified AI, data centres, semiconductor-linked electronics, and digital infrastructure as priority sectors for future investment.
While the Himachal Pradesh government did not frame a standalone startup policy, it helped budding startups and innovators with seed funding through the HIM Startup Yojana 2025, implemented by IIT Mandi Catalyst. The state government emphasised long-term industrial diversification into digital and AI-enabled sectors rather than relying on traditional manufacturing alone.
Tamil Nadu
Tamil Nadu significantly expanded its agenda for applied technology and AI adoption in 2025. The state intensified efforts to upskill the workforce in areas including advanced manufacturing, robotics, IoT, and data-driven systems.
Chief Minister MK Stalin also announced plans to set up a ‘Co-creating Fund’ with an allocation of ₹100 crore to invest in venture capital funds.
Between 2020 and 2025, the number of registered startups in Tamil Nadu grew at a compound annual rate of 36%, the state government estimated. It now hosts over 12,000 startups, with half of them led by women entrepreneurs.
Haryana
In September 2025, Haryana Chief Minister Nayab Singh Saini announced the H-HUB startup incubator in Gurugram. The facility will provide plug-and-play workspaces, innovation labs, and prototyping centres to boost entrepreneurship.
The state government also launched the GCC Policy 2025, which hopes to attract MNCs through financial incentives, streamlined approvals, talent support, and infrastructure.
Haryana also partnered with NITI Aayog to establish a state chapter of the Women Entrepreneurship Platform, giving women entrepreneurs access to over 700 mentors, sector-specific training, funding opportunities, market access, and incubation support. It is also formulating a separate scheme to support women-led startups engaged in handmade and traditional items
The state’s 2025 initiatives focused on reinforcing its startup support ecosystem through continued funding mechanisms and entrepreneurship promotion.
