The National Capital Territory of Delhi has emerged as one of India’s most vibrant entrepreneurial ecosystems. With its unique position as both a political and commercial hub, Delhi has historically attracted innovators, investors, and business leaders across industries. The draft Delhi Startup Policy, 2025, (“Draft Policy”) proposed by the Government of the National Capital Territory of Delhi (“GNCTD”) marks a strategic initiative to transform Delhi into a global innovation hub and the most preferred destination for startups by 2035. At its core, this framework seeks to build an enabling ecosystem for an innovation-led economy, encouraging entrepreneurial spirit, and supporting the emergence of at least 5,000 startups across the state within the next decade. The Draft Policy is designed to create an enabling environment for startups by addressing funding, infrastructure, compliance, and market access challenges, while simultaneously fostering inclusivity and alignment with sustainable development goals.
Objectives and Vision of the Policy
The Draft Policy has been formulated with a clear vision of establishing Delhi as the “Startup Capital of India.” The Draft Policy recognizes that startups not only contribute to economic development but also serve as engines of innovation, capable of addressing pressing societal and environmental challenges. The major objectives outlined in the draft include strengthening infrastructure, ensuring access to finance, creating an inclusive ecosystem, and aligning innovation with global standards.
At its core, the Draft Policy seeks to nurture knowledge-driven, technology-enabled enterprises. By extending fiscal and non-fiscal incentives, the government aims to encourage innovation-driven growth while simultaneously supporting traditional businesses that embrace new technologies. Special emphasis has also been placed on inclusivity, with the policy introducing targeted schemes to encourage participation by women, entrepreneurs from disadvantaged backgrounds, and startups working on sustainability and social impact solutions.
Importantly, the Draft Policy has been framed in alignment with India’s national initiatives such as Startup India, Digital India, and Atmanirbhar Bharat. With a ten-year operational period from the date of notification, the Draft Policy aims to foster sustainable and inclusive socio-economic development. It envisages generating new avenues of employment while strengthening human capital by supporting educational and innovation systems from the grassroots. The Draft Policy places particular emphasis on maximizing collaborations between academia and industry to fuel the growth of incubators and startups. It further seeks to facilitate funding access and establish world-class incubator and accelerator infrastructure through strategic engagements with both public and private stakeholders.
Noteworthy Definitions and Procedural Changes
The Draft Policy introduces important definitions and procedural reforms that will shape the way startups interact with the state apparatus.
- Definition of Startup: The Draft Policy defines startups in a manner consistent with national norms while offering certain local refinements. Eligible entities include private limited companies, LLPs, and partnerships incorporated in India, with an operational history of less than ten years and annual turnover below INR 100 crores. Crucially, the entity must demonstrate innovation or scalability, thereby preventing misuse of incentives by traditional businesses without entrepreneurial intent.
- Delhi Startup Portal: A cornerstone of the new framework, the Delhi Startup Portal will serve as the primary interface between the government and startups. It will enable digital registration, allow startups to apply for grants and funding, monitor compliance obligations, and serve as a repository for periodic performance reports.
- Incubation Standards: To ensure quality, the Draft Policy introduces standardized guidelines for incubators. These guidelines emphasize access to mentorship, technical support, and industry connections, while also requiring incubators to maintain transparency in operations. This professionalization of incubation services is expected to improve the quality of support available to startups.
- Funding Facilitation: The Draft Policy outlines structured frameworks for angel investors and venture capitalists to co-invest alongside government-backed funds. By offering risk-sharing mechanisms and co-investment opportunities, Delhi aims to attract private capital while reducing investor risk.
- Documentation Requirements: Startups availing themselves of government incentives will need to submit streamlined documentation, including incorporation details, financial statements, and periodic progress reports. These requirements are intended to maintain transparency and accountability without overburdening the enterprises.
Compliance Obligations and Timeline
The Draft Policy introduces several compliance-related obligations for startups wishing to avail themselves of government benefits. Importantly, these obligations are designed not to burden startups but to provide clarity and structure.
Startups will be required to register on the Delhi Startup Portal, a centralized digital platform that will act as a one-stop solution for certification, funding applications, compliance monitoring, and grievance redressal. Registration is mandatory to access incentives such as grants and procurement benefits. A significant compliance relaxation introduced by the Draft Policy is self-certification under certain labor and environmental laws. This reduces the compliance burden on young startups and allows them to focus more on growth and innovation rather than procedural hurdles.
The Draft Policy has been designed for phased implementation over a five-year horizon. Periodic reviews are built into the framework to allow for adaptive policymaking based on evolving ecosystem needs. A mid-term evaluation mechanism will also ensure that the policy remains relevant and effective in responding to startup challenges.
A dedicated Delhi Startup Council will be established to oversee policy implementation, resolve stakeholder grievances, and recommend amendments. This institutional mechanism ensures accountability and provides startups with a forum for feedback and redressal.
In terms of governance and implementation, the Draft Policy establishes a robust structure featuring the Startup Policy Monitoring Committee, Startup Task Force, and the Department of Industries as the Nodal Agency. The Monitoring Committee, chaired by the Commissioner of Industries, oversees inter-departmental collaboration, issue clarifications, and reviews policy amendments, drawing upon expertise from academia, industry, and government. The Startup Task Force, with its majority of private sector and academic experts, evaluates applications, monitors compliance, and advises on effective implementation strategies. The Department of Industries facilitates the operationalization of incentives, manages grievance redressal, coordinates outreach, and maintains IT infrastructure including the Delhi Startup Portal.
Strategically, the Draft Policy prioritizes key growth sectors such as healthcare, fintech, electric vehicles, robotics, green technology, gaming, AI, SaaS, biotechnology, and emerging areas like hydrogen, among others. It supports state-of-the-art physical and virtual infrastructure and offers targeted support for research, development, and mentorship. Collaboration with industry associations, investor networks, and international partners will amplify mentorship, market exposure, and investor engagement opportunities for Delhi startups. Annual events such as the Delhi Startup Festival, together with curated technical and networking programs, will further catalyze awareness and connectivity in the entrepreneurial ecosystem.
Implication on Startups and Stakeholders
The Draft Policy has wide-ranging implications for entrepreneurs, investors, incubators, and the broader business community. Firstly, startups stand to benefit from substantial financial support through the establishment of the Delhi Startup Fund. This fund is expected to provide seed funding, grants, and venture capital facilitation, thereby reducing the initial hurdles faced by founders. Unlike conventional financing channels, this initiative promises a mix of equity and debt-based funding, with mechanisms for risk-sharing between the government and private investors.
Secondly, the Draft Policy envisages large-scale infrastructure development. The government has proposed the creation of incubation centres, coworking spaces, and innovation labs across Delhi. These facilities will provide affordable physical infrastructure to early-stage companies and foster collaborative networks where entrepreneurs, mentors, and investors can converge. The availability of such infrastructure will reduce entry barriers for resource-constrained startups and ensure that innovation is not limited to elite circles.
Thirdly, there is a strong emphasis on regulatory facilitation. Recognizing that compliance requirements often deter entrepreneurs, the government has proposed a single-window clearance system and simplified registration processes. This is expected to not only reduce bureaucratic red tape but also build greater confidence among startups that often lack the resources to navigate complex regulatory landscapes.
Additionally, the Draft Policy introduces measures for market access. Startups will have opportunities to collaborate with government departments through preferential procurement norms. By enabling startups to participate as vendors in government contracts, the Draft Policy ensures that innovative enterprises gain a ready market for their products and services. Such initiatives can significantly improve the revenue potential of early-stage companies.
Finally, the Draft Policy introduces sector-specific incentives. Recognizing the growth potential of sectors such as health-tech, ed-tech, fintech, artificial intelligence, clean energy, mobility, and climate technology, the government has proposed tailored packages of support. These incentives may include specialized funding, access to pilot projects with government agencies, and opportunities for collaboration with academic institutions.
Conclusion
The Draft Policy is a forward-looking approach by the GNCTD to position the city as a global hub for innovation and entrepreneurship. By combining fiscal incentives, regulatory facilitation, and infrastructure development with a strong emphasis on inclusivity and sustainability, the policy seeks to create a thriving ecosystem for startups across diverse sectors. Its alignment with national initiatives such as Startup India and Digital India further strengthens the policy’s ability to attract talent, capital, and industry collaborations. Importantly, the establishment of institutional mechanisms like the Delhi Startup Council and the Startup Portal ensures transparency, accountability, and stakeholder engagement in implementation. While effective execution will ultimately determine its success, the Draft Policy demonstrates a strong commitment to fostering knowledge-driven, technology-enabled enterprises. If implemented with consistency and adaptability, it has the potential to transform Delhi into the “Startup Capital of India” and serve as a model for other states to follow.
