Delhi Government Targets 5,000 Startups by 2035 with New VC Fund and Incentives

The Delhi government on Tuesday announced the draft Delhi Startup Policy 2025, aiming to position the capital as a leading hub for innovation and entrepreneurship. The policy targets the development of 5,000 startups by 2035, highlighting Delhi’s ambition to become a top choice for entrepreneurs in the years ahead.

The draft policy includes a ₹200-crore venture capital fund aimed at providing financial backing to early-stage startups through both equity and structured-debt instruments. It also plans to encourage private sector involvement through co-investment arrangements and to organise hands-on workshops for investors and high-net-worth individuals to better understand startup investment dynamics.

The policy focuses on 18 key sectors, including healthcare, fintech, green technology, gaming, drones, augmented reality, artificial intelligence, and robotics, aiming to drive innovation aligned with current and future market demands. It also plans to set up co-working spaces, incubation centres, and fabrication labs, providing startups with both financial assistance and operational support.

A Policy Monitoring Committee, chaired by the Industries Commissioner, will oversee approvals and implementation, while a Startup Task Force comprising government officials and industry experts will evaluate applications and track progress every six months. Feedback on the draft policy is open until September 3, 2025, via the Industries Department website.

Startups eligible for the scheme must be registered in Delhi, structured as private limited companies, LLPs, or partnerships, with a turnover of less than ₹100 crore in any financial year and a maximum age of 10 years. Preference will be given to smaller and younger ventures to promote early-stage innovation.

The policy also proposes a Delhi Startup Portal as a single-window digital gateway for startups to access registrations, incentive applications, mentor matching, knowledge resources, grievance redressal, and a dedicated helpline. Virtual incubation services through the Delhi Incubation Hub network will connect startups with mentors and experts across sectors.

Industries Minister Manjinder Singh Sirsa highlighted the policy’s inclusive approach, particularly for women and marginalized entrepreneurs. “From workspace solutions to intellectual property support, exhibition assistance, and direct funding through the venture capital fund, we aim to ensure no genuine startup idea fails due to lack of support,” he said, adding that the policy will remain in effect for 10 years with provisions continuing thereafter.