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Delhi Government Unveils ₹350 Crore Startup Policy to Fuel Student Entrepreneurship

The Delhi government has launched a bold new initiative to support student-led startups. The Delhi Education Minister, Ashish Sood, unveiled the Delhi Startup Policy 2025, a ₹350 crore, five-year plan aimed at nurturing student innovators from campus to market. The move signals a major shift in how education and entrepreneurship intersect in India’s capital.

The announcement came at the Delhi Startup Yuva Festival 2026, organised by the Directorate of Training and Technical Education. Over 20,000 students from schools, colleges, universities and industrial training institutes attended the event.

A Policy Designed for Young Innovators#

The new policy aims to create an end-to-end support ecosystem for students with startup ideas. Core features include:

  • Equity-free seed funding to help early ideas grow.
  • Structured mentorship programmes linking students with industry experts.
  • Investor matchmaking to connect startups with funding partners.
  • Expanded incubation networks across educational institutions.

At the heart of the strategy is the Delhi Student Seed Fund, which will provide early stage capital without demanding ownership stakes. The government has already dispersed ₹10 crore through earlier seed support schemes, giving ₹20,000 to around 5,000 student teams from government schools.

Speaking at the festival, Minister Sood said the policy is about more than money. “We are not just giving a stage; we are building a system where ideas, mentors, funding, and markets will meet under one roof,” he told the audience.

Target: 5,000 Startups by 2035#

The government expects the policy to help support 5,000 startups by 2035. Officials describe the plan as a campus-to-market ecosystem, where student ideas move seamlessly from concept to commercial venture.

According to Sood, more than 470 startups are already incubated across government institutions. These include ventures in technology, healthcare, sustainability, and manufacturing. Initial estimates suggest these startups have generated significant revenue and created jobs.

Student Innovations Take Center Stage#

The launch event showcased student solutions tackling real challenges:

  • Jatayu – A disaster management platform using AI and drones to detect emergencies even in low connectivity zones.
  • FlushSHE – India’s first fully biodegradable sanitary pad designed for improved environmental impact.
  • Drishti Raksha – An AI powered tool for early detection of diabetic retinopathy to prevent blindness.

Final-year engineering student Soumya described how her team’s disaster response system operates in areas with poor communication signals. “We made a lightweight solution that can help save lives when seconds matter,” she said.

Aligning with National Priorities#

The policy aligns with India’s broader goal of transforming education into a driver of innovation. Prime Minister Narendra Modi has repeatedly emphasised the need for students to become job creators, not just job seekers under the National Education Policy.

Experts from industry bodies have welcomed the approach. Geetika Dayal, Director General of TiE Delhi NCR, highlighted the importance of collaboration between government and entrepreneurship ecosystems to give young founders mentorship, market access and long-term support.

Clear Cut Research Desk
New Delhi, UPDATED: Feb 02, 2025 05:00 IST
Written By:  Ayushman Meena

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