In order to assist and facilitate the formation of at least 5,000 startups by 2035, the Delhi government has produced the draft “Delhi Startup Policy, 2025.”

The government plans to launch a venture capital fund with a value of INR 200 Cr under the draft policy. The proposed policy said that the Government of the National Capital Territory of Delhi (GNCTD) may host experiential learning workshops in collaboration with prominent investor networks to educate high-net-worth individuals and prospective investors on the ins and outs of investing in startups.

Other salient points of the draft policy include: 

— Reimbursement of 100% on lease rentals up to INR 10 Lakh per annum for a maximum period of three years.

— Complete reimbursement of patent design filing of up to INR 3 Lakh on international filing and INR 1 Lakh on domestic patent filing.

— Monthly allowance of INR 2 Lakh for a period of one year for operational costs.

In addition to the funding, the strategy suggests establishing new coworking spaces or incubation centers to offer operational and capital support “over and above” the current Central government subsidies for a five-year term.

Related: 10 Indian Startups That Have Gained Most Since their IPOs .

In order to mentor businesses situated in the nation’s capital, the Delhi government will also look into forming alliances with academic institutions, incubators, government labs, and financial organizations.

Through the Delhi Incubation Hub network, the Delhi government will offer entrepreneurs virtual incubation services so they can connect with mentors and experts.

A policy monitoring committee will also be established by the BJP government, with the commissioner of industries serving as its head. The group will also include a few industry specialists, the secretary of the planning department, and the deputy commissioners of the industries department.

When considering these high achievers, a number of themes emerge prominently:

• Profitability is crucial: Unlike their cash-burning counterparts, companies such as Zaggle and CarTrade gained investor trust by demonstrating early profits.
• Sector focus wins: Successful sector-specific enterprises such as Nykaa in beauty, ixigo in travel, and PolicyBazaar in insurance demonstrate the scalability of vertical specialization.
• Public markets reward resilience: Stocks such as Zomato and Delhivery demonstrate that a sustained performance can change sentiment, even after a rough start.
• Consumer demand is the foundation: Startups catering to India’s growing middle class — such as food delivery, beauty services, travel, and coworking — are flourishing.

Additionally, the policy suggests forming a “Startup Task Force” to review and approve applications submitted to obtain benefits under the program. Five industry experts and two commissioners from the industries department would lead this force. Every six months, the task team will be in charge of assessing the state of implementation.

The state government’s emphasis on encouraging entrepreneurship coincides with the rapid expansion of the startup scene in the nation. With about 1.9 lakh firms that have funded over $164 billion to date, the Indian startup ecosystem is currently the third largest in the world.

States around the country are enacting specific laws to support startups in an effort to boost local economy and generate employment. For example, as part of its state startup policy, the state of Haryana recently asked private investors to donate INR 2,000 Cr to a “Fund of Funds.”

In addition, the government of Andhra Pradesh recently unveiled the “AP Innovation & Startup Policy (4.0) 2024-2029,” which aims to establish 20,000 new companies over the course of the following five years.