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Rs 400-crore initiative aims to strengthen incubation, innovation and entrepreneurship across educational institutions.
New Delhi
In a major push to strengthen Delhi’s start-up ecosystem, the Delhi Cabinet has approved a Rs 400-crore Start-up and Incubation Policy that seeks to transform educational institutions into centres of entrepreneurship while providing early-stage ventures with financial, technical and mentoring support.
The policy, to be implemented over the next five years, proposes the creation and strengthening of incubation centres across state universities, government-aided colleges, polytechnics and Industrial Training Institutes (ITIs). These centres will provide aspiring entrepreneurs with access to mentorship, networking opportunities, infrastructure, legal and business advisory services, helping them develop ideas into commercially viable enterprises.
Unlike traditional financial assistance programmes, the policy focuses on building long-term support systems for start-ups. Institutions selected under the scheme will receive financial assistance to establish incubation facilities, while entrepreneurs working through these centres will have access to mentors, investors, industry experts and training programmes.
The policy is expected to particularly benefit first-time founders, who often struggle to secure funding and professional guidance before approaching venture capital firms or angel investors. By providing incubation support within educational institutions, the government hopes to encourage students to pursue entrepreneurship instead of waiting until after graduation.
Industry experts believe the initiative could significantly lower the barriers to starting a business.
“For most early-stage founders, access to mentors and industry networks is often more valuable than funding alone,” said Rohan Mehta, founder of a Delhi-based technology start-up. “If the incubation centres are managed professionally, they can help young entrepreneurs avoid common mistakes and build stronger businesses from the outset.”
The policy is also expected to strengthen collaboration between universities and industry by encouraging research commercialisation. Faculty members and students working on innovative technologies will have greater opportunities to convert research into market-ready products, an area where India’s academic institutions have traditionally lagged.
Beyond supporting entrepreneurs, the government expects the initiative to generate employment by encouraging new businesses in sectors such as artificial intelligence, healthcare, education, manufacturing, clean technology and digital services. Successful start-ups emerging from the incubation ecosystem could eventually create jobs while attracting private investment into Delhi.
Experts, however, caution that the policy’s impact will depend largely on how effectively it is implemented.
“Creating incubation centres is only the first step,” said Gaurav Rathod, who is associated with a start-up incubator. “The real challenge will be ensuring they have experienced mentors, transparent funding mechanisms and strong connections with investors. Without that, the infrastructure alone will not be enough to produce successful start-ups.”
The approval of the policy comes as states across India compete to attract entrepreneurs and innovation-driven businesses. While Delhi already has one of the country’s largest start-up ecosystems, much of the investment has traditionally flowed to established ventures. The new policy seeks to bridge that gap by supporting entrepreneurs at the idea and prototype stage, when access to institutional backing is often limited.
If implemented effectively, the Rs 400-crore initiative could reshape Delhi’s entrepreneurial landscape by turning educational campuses into innovation hubs, strengthening the city’s start-up pipeline and encouraging more young innovators to build companies from the national capital. The policy also signals a shift in the government’s approach—from merely supporting businesses after they are established to nurturing entrepreneurship at its earliest stage, where the need for guidance and institutional support is often the greatest.
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