Maharashtra Launches Comprehensive Startup Policy, Aims To Empower 1.25 Lakh Entrepreneurs

The Maharashtra state cabinet has approved a new startup policy to boost innovation, self-employment, and entrepreneurship across both urban and rural areas. The Maharashtra Startup, Entrepreneurship and Innovation Policy 2025 aims to support 1.25 lakh entrepreneurs and recognise 50,000 startups over five years. Key features include a Rs 500-crore Maha-Fund, subsidised loans, incubation infrastructure, a global startup exchange, and the creation of a 300-acre Maharashtra Innovation City in Navi Mumbai.

Loans ranging from Rs 5 lakh to Rs 10 lakh will be available at a 3% subsidised interest rate for aspiring entrepreneurs. These loans will be distributed through a structured three-stage selection process. Five lakh youth, including graduates and ITI pass-outs, will be screened, with 25,000 selected for financial and incubation support. Micro-incubators will be established in ITIs, polytechnics, and academic institutions alongside regional innovation hubs in each administrative division.

Focus on Infrastructure and Innovation

A significant infrastructure project is the Maharashtra Innovation City (MIC), planned near Navi Mumbai International Airport. This 300-acre facility will serve as a convergence zone for startups, R&D labs, corporates, academia, and government entities. It will host sector-focused clusters in AI, FinTech, Deeptech, Medtech, Biotech, Spacetech, smart infrastructure, mobility, sustainability, and cybersecurity.

The MIC will feature AI sandboxes, data analytics labs, co-working spaces, a single-window policy facilitation centre, and venues for global startup exchanges. Startups chosen through the Maharashtra Startup Week can receive pilot work orders up to Rs 25 lakh from state departments. The policy also offers reimbursements of Rs 5 lakh for domestic patents and Rs 20 lakh for international patents.

Governance Model and Financial Support

The policy introduces a governance model led by the Chief Minister's general body with support from a governing council administered by the Maharashtra State Innovation Society (MSInS). Each state department will allocate 0.5% of its annual budget for innovation promotion. A centralised startup registry will assign unique IDs to eligible startups to ensure transparent access to benefits.

To enhance capital access, a Rs 200-crore venture fund with IDBI Capital will focus on Deeptech, agritech, healthcare sustainability and women-led startups. Additionally, a Rs 100-crore fund with SIDBI will leverage a public-private capital structure of 1:2. CSR-linked incubators and social impact accelerators are also part of the plan to support emerging technologies.

Educational Integration and Digital Initiatives

The digital component includes mentorship platforms and real-time knowledge portals promoting AI-based innovation using government open datasets. Entrepreneurship courses will be integrated into school curricula and ITI programs. The policy utilises the District Annual Plans' 3.5% innovation allocation to promote grassroots innovations and local cluster developments.

"This policy is structured to provide direction," said Mangal Prabhat Lodha after the cabinet meeting. "It's not just about subsidies—it's an ecosystem strategy designed to position Maharashtra as India's leading innovation destination," added Manisha Verma.

Addressing Structural Gaps

Maharashtra hosts over 14,000 women-led startups and is home to 27 of India's unicorns. All districts have at least 20 recognised startups reflecting strong geographical spread. However, startup activity remains concentrated in urban centres like Mumbai and Pune while rural regions remain underserved.

The new policy aims to address these gaps by building an inclusive startup ecosystem across the state focusing on decentralised incubation channels for early-stage startups along with improved global investor access.