In a significant move to strengthen its position as a leading innovation hub, the Haryana government has unveiled a comprehensive strategy to empower youth-led startups. This initiative, championed by Chief Minister Nayab Singh Saini, integrates dedicated funding, sector-specific incentives, and targeted support programs to transform the state’s young population from job seekers into job creators. Building on a robust foundation of over 9,500 recognized startups, Haryana is making a strategic push to decentralize India’s innovation landscape and position itself as a premier startup-friendly destination beyond traditional metros.
A Financial Foundation for Innovation
Recognizing that access to capital is critical for early-stage ventures, the Haryana government has established multiple financial support mechanisms.
Major Funds in Focus
The cornerstone of this effort is the newly announced ₹2,000-crore ‘Fund of Funds’ designed to provide extensive financial backing, enabling young entrepreneurs to pursue innovative ideas without being constrained by capital limitations. This builds on a more recent and concrete milestone: a ₹100 crore Contribution Agreement signed in October 2025 between the Haryana government and SIDBI Venture Capital Ltd (SVCL) for the Atmanirbhar Startup Venture Fund. This ₹250 crore fund (with the state’s contribution being ₹100 crore) will specifically target scalable startups in high-growth sectors like AI, health-tech, agri-tech, and clean energy.
Subsidies and Credit Support
Beyond equity-focused funds, the state is leveraging a suite of central and state schemes to provide direct support. Chief Minister Saini has highlighted initiatives like the Mudra Scheme, Stand-Up India, and special subsidies for the MSME sector as key pillars for promoting entrepreneurship. For startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), the Haryana State Startup Policy-2022 has already provided financial assistance of ₹1.14 crore to 22 startups.
Sectoral Strengths and Technological Thrust
Haryana’s strategy smartly blends its traditional industrial strengths with a sharp focus on futuristic technology.
Blending Tradition with Technology
A unique aspect of the state’s vision is encouraging youth to integrate local artisanal skills with modern technology. The new ‘Padma’ scheme aims to promote the distinctive products of each administrative block—such as Ambala’s scientific instruments, Panipat’s handlooms, and Rewari’s brass craft—and establish them as “Brand India” globally. This modern “swadeshi” approach extends beyond traditional goods into advanced sectors like technology, software, defence equipment, and semiconductors.
Building a Sovereign AI Hub
In a major push to become a national leader in emerging tech, the Haryana cabinet has approved a ₹474 crore Artificial Intelligence Development Project for 2025-28, supported by the World Bank. The project aims to establish critical AI infrastructure, skill 50,000 professionals, integrate AI into public governance, and support AI startups, with the goal of positioning Haryana as a national AI hub. This initiative dovetails with the national ₹1 lakh crore Research, Development and Innovation (RDI) Fund, which prioritizes near-commercial technologies in AI, biotech, and clean energy.
Empowering the Next Generation of Founders
The initiatives are explicitly designed to unlock the potential of Haryana’s youth, particularly those in Tier-2 and rural areas.
Fostering a Creator Mindset
Central to the government’s messaging is a call for a fundamental mindset shift. CM Nayab Singh Saini has consistently urged the youth to become “job creators rather than job seekers”. The state sees startups as essential for building a skilled youth force capable of generating employment. There is also a dedicated goal to increase women’s participation in startups from 50% to 60%.
Building a Conducive Ecosystem
Beyond funding, the state is working on creating a supportive regulatory and infrastructural environment. Efforts include easing over 1,100 compliances across 48 departments to promote ‘Ease of Doing Business’ and providing over 230 online services through a single-roof clearance system. Plans are also underway to establish new industrial model townships to provide high-quality infrastructure.
The Road Ahead: Opportunities and Implications
Haryana’s focused push presents clear opportunities but also underscores the evolving nature of India’s startup economy.
- A Diversified Indian Startup Map: Haryana’s rise, with Gurugram as a key hub, demonstrates that innovation is successfully decentralizing. With over 12 lakh registered MSMEs already providing employment to approximately 65,000 people, the state has a strong industrial base to build upon.
- A Template for Other States: The multi-pronged approach—combining a large Fund of Funds, targeted sectoral funds (like the SVCL agreement), AI infrastructure development, and support for grassroots innovation—offers a potential blueprint for other states aiming to boost entrepreneurship.
- Alignment with National Goals: This comprehensive drive directly supports the national missions of Atmanirbhar Bharat (Self-Reliant India) and Digital India. By fostering homegrown technology and manufacturing, Haryana is contributing to the larger goal of technological self-reliance and positioning India as a global leader in innovation.
For aspiring founders in Haryana and investors watching the region, the message is clear: the launchpad is being actively built and fueled. The combination of financial capital, technological vision, and a focus on youth empowerment is setting the stage for Haryana’s startup ecosystem to graduate from a strong regional player to a national powerhouse of innovation.
Key Government Schemes for Haryana Startups
For quick reference, here are some of the key support mechanisms available: