5-year strategy to aid 1.25 lakh entrepreneurs: Startup policy gets Maharashtra Cabinet nod

Under the policy, aspiring entrepreneurs will be eligible for loans between Rs 5 lakh and Rs 10 lakh at a 3% subsidised interest rate, to be provided through a structured three-stage selection process. A total of five lakh youth, including graduates and ITI pass-outs, will be screened, of which 25,000 will be selected for financial and incubation support.

The government will simultaneously set up micro-incubators in ITIs, polytechnics, and academic institutions, along with regional innovation and entrepreneurship hubs in each of the state’s administrative divisions.
A key infrastructure initiative is the development of the Maharashtra Innovation City (MIC), a 300-acre integrated facility planned near Navi Mumbai International Airport.

Designed as a convergence zone for startups, R&D labs, corporates, academia and government, the city will host sector-focused clusters in AI, FinTech, Deeptech, Medtech, Biotech, Spacetech, smart infrastructure, mobility, sustainability, and cyber security.

The facility will include AI sandboxes, data analytics labs, co-working spaces, a single-window policy facilitation centre, and venues for global startup exchanges, demo days and investor summits.

Startups selected through the Maharashtra Startup Week will be eligible for pilot work orders of up to Rs 25 lakh from state departments. The policy also provides for reimbursements of Rs 5 lakh for domestic patents, Rs 20 lakh for international patents, Rs 5 lakh for quality certifications, as well as funding for participation in domestic and international exhibitions.

The policy introduces a robust governance model anchored by a general body chaired by the Chief Minister, supported by a governing council and administered by the Maharashtra State Innovation Society (MSInS).

Each state department will earmark 0.5% of its annual outlay for innovation and entrepreneurship promotion. A centralised startup registry will assign unique IDs to all eligible startups, incubators, mentors, and investors to ensure transparent access to government benefits.

To strengthen access to capital, the policy will launch a Rs 200-crore venture fund with IDBI Capital, focusing on Deeptech, agritech, healthcare, sustainability and women-led startups. Additionally, a Rs 100-crore fund will be created with SIDBI, leveraging a 1:2 public-private capital structure.

Provisions have also been made for CSR-linked incubators, social impact accelerators and regulatory sandbox frameworks to support innovation in emerging technologies.

The digital component includes a mentorship platform, a real-time knowledge portal, and promotion of AI-based innovation using government open datasets. The policy integrates entrepreneurship courses into school and ITI curricula, and will utilise the 3.5% innovation allocation under District Annual Plans to promote grassroot innovations, local cluster developments and inclusive enterprises.

“This policy is structured to provide direction, financial backing and mentoring, so that young entrepreneurs don’t waste years without support,” Mangal Prabhat Lodha, Minister for Skills, Employment, Entrepreneurship and Innovation, said after the cabinet meeting.

“It’s not just a policy of subsidies — it’s a cohesive ecosystem strategy designed to position Maharashtra as India’s leading innovation destination,” said Manisha Verma, Additional Chief Secretary of the Skills, Employment, Entrepreneurship and Innovation Department.

Maharashtra hosts over 14,000 women-led startups and is home to 27 of India’s 117 unicorns, accounting for 23% of the national count. All 36 districts in Maharashtra have at least 20 recognised startups, reflecting a strong geographical spread. The state has received national accolades for administrative excellence and ranks among the top performers in the State Ranking Framework (2022–23).

However, despite this scale, startup activity remains concentrated in urban centres like Mumbai and Pune. Rural regions, tier-2 cities, and emerging sectors such as Deeptech, AI, blockchain, and agritech remain underserved.

There is a lack of decentralised incubation, limited procurement channels for early-stage startups, and insufficient global investor access. The 2025 policy aims to address these structural gaps by building a more inclusive, distributed, and sector-wise diversified startup ecosystem across the state.