Delhi Government Plans Major Overhaul for Campus Innovation
Government-funded campuses in Delhi stand at the threshold of a significant transformation. The proposed Delhi Startup & Incubation Policy 2026 aims to fundamentally reimagine these institutions. Instead of functioning merely as degree-granting spaces, they could become powerful engines of innovation and entrepreneurship.
Addressing a Decade-Old Gap
The city's last incubation policy dates back to 2016. That framework established 11 incubation centers, each supported by a Rs 1.5 crore seed grant. It represented an important first step toward involving government institutions in the startup ecosystem.
However, policymakers and education officials have acknowledged a critical problem in recent years. The 2016 framework never received updates, even as India's startup landscape evolved dramatically. Entrepreneurs moved aggressively into deep-tech, artificial intelligence, climate solutions, health innovation, and social impact ventures.
By 2025, the contrast became painfully clear. Delhi possessed world-class educational infrastructure, but its institutional startup support remained fragmented and uneven. The new policy directly targets this gap.
A Comprehensive, Institution-Centric Framework
Building upon the foundation laid ten years ago, the 2026 proposal presents a comprehensive approach. It emphasizes taking ideas from campus directly to market, with strong focus on accountability and measurable outcomes.
The policy likely covers all 11 Delhi state universities. It also includes state government-funded colleges, polytechnics, and Industrial Training Institutes (ITIs). Government officials indicate that private and centrally funded institutions will probably remain outside its scope. This move aims to ensure tighter administrative oversight and more efficient use of public funds.
Substantial Funding and Clear Goals
Education Minister Ashish Sood recently chaired a stakeholder consultation to gather expert inputs. He stated that the Delhi government plans to introduce the policy soon.
A proposed provision of Rs 325 crore is earmarked for the next five years. The policy sets an ambitious target: enabling 5,000 startups by the city's youth by 2035. It promises structured support across incubation, funding, industry linkages, and market access.
Transforming Campuses into Idea Cradles
At its core, the policy envisions turning government campuses into structured cradles for ideas. Institutions may receive one-time capital grants to establish or upgrade incubation centers with modern infrastructure. They could also get recurring operational support for mentoring, ecosystem building, and day-to-day functioning.
This funding will not be open-ended. Draft provisions suggest all incubators must meet minimum quality benchmarks. For the startups themselves, the proposal outlines a milestone-based funding model. Instead of blanket grants, incubatees may receive support in stages.
Support could begin with initial proof-of-concept funding, followed by assistance for product development. Later stages might include resources for market validation and customer acquisition.
Eligibility and Priority Sectors
Eligible founders likely include current students, alumni, and faculty members—including retired faculty. Registered Indian entities with a focus on innovation-driven and socially relevant ventures also qualify.
Proposed priority sectors cover a wide range:
- Clean energy and environment
- Healthcare and assistive technology
- Artificial intelligence and internet of things
- Smart mobility and education technology
- Governance innovation
Strong Governance and Monitoring
Governance forms a central pillar of the draft policy. The Directorate of Training and Technical Education is expected to act as the nodal department. Oversight will come from a State Innovation and Policy Monitoring Committee.
This committee will comprise representatives from the directorate, higher education department, industry, academia, investors, and startup experts. Funding will likely link to strict key performance indicators.
These KPIs include:
- The number of startups incubated and graduated
- Jobs created
- The amount of external funding raised
- Patents filed
- Participation of women and entrepreneurs from diverse social categories
Incubators that consistently underperform may face restructuring or loss of support.
Learning from Past Efforts
In 2022, the then AAP government approved a startup policy aimed at creating a supportive ecosystem. That policy provided various handholding measures, including fiscal and non-fiscal incentives, collateral-free loans, and free consultancy from experts, lawyers, and chartered accountants.
However, government officials note that "large-scale outcomes were not reported." Experts identify the lack of outcome tracking as a key weakness of previous incubation efforts.
The 2026 draft appears to acknowledge this reality directly. By emphasizing performance-linked funding and proposing clearer metrics with consequences, it marks a distinct shift from earlier approaches. The policy represents a conscious effort to build a more accountable and results-driven innovation ecosystem within Delhi's government campuses.
