Gujarat’s government launched a new startup funding scheme on June 22, 2025, targeting young innovators under 35. Offering grants up to INR 10 lakh, mentorship, and market access, the initiative aims to bolster the state’s startup ecosystem. With a focus on tech-driven solutions, it seeks to empower 2,000 startups by 2027, reinforcing Gujarat’s position as a hub for innovation.
Gujarat Unveils Ambitious Funding Plan for Young Entrepreneurs
On June 22, 2025, the Gujarat government rolled out a transformative startup funding scheme under the Student Startup and Innovation Policy (SSIP 2.0), specifically designed to empower young innovators aged 35 and below. Announced at a vibrant event in Ahmedabad, attended by Chief Minister Bhupendrabhai Patel and industry leaders, the scheme aims to nurture 2,000 startups by 2027, cementing Gujarat’s reputation as a leading startup ecosystem in India.
The initiative, managed by the Gujarat Student Startup and Innovation Hub (i-Hub), introduces the Startup Srujan Seed Support (S4) program. It offers grants ranging from INR 2.5 lakh to INR 10 lakh to support innovators transitioning from proof of concept (PoC) to market-ready products. Eligible applicants include school students, diploma, undergraduate, postgraduate, and doctoral students, as well as alumni and dropouts from Gujarat-based institutions. The scheme is sector-agnostic, encouraging innovation in fields like technology, healthcare, agriculture, and more.
Startups can also access a sustenance allowance of INR 20,000 per month for one year, with an additional INR 5,000 for ventures with at least one woman co-founder. Beyond financial aid, the program provides mentorship, access to government laboratories, and market linkage support through nodal institutes like the Gujarat University Startup and Entrepreneurship Council (GUSEC) and the Entrepreneurship Development Institute of India (EDII). The scheme also facilitates connections with venture capital through Gujarat Venture Finance Limited (GVFL) for mid-stage startups facing funding gaps.
Since its inception, Gujarat’s startup ecosystem has shown remarkable growth. According to i-Hub, the state has supported over 300 startups through GUSEC alone, with 180 incubators fostering innovation. The new scheme builds on the success of earlier policies, such as the Gujarat Industrial Policy 2020, which provided INR 22 crore to 175 startups between 2016 and 2018. The state’s ranking as the “Best Performer” in the Startup Ranking Framework for 2020 and 2021 underscores its pro-business approach.
Special emphasis is placed on inclusivity. The scheme prioritizes women-led startups and those from marginalized communities, with tailored tracks like Elevate Unnati for Scheduled Caste/Scheduled Tribe entrepreneurs. Additionally, startups can benefit from patent assistance, reimbursing up to 75% of domestic patent filing costs, and access to co-working spaces at zero cost through GUSEC’s Surge program.
The launch event highlighted success stories like Expresso-Arts, an art-tech startup, and Dronelab, a drone service provider, both incubated under earlier SSIP initiatives. Chief Minister Patel emphasized, “Gujarat’s vision aligns with Atmanirbhar Bharat, fostering job creation and innovation through our youth.” Industry experts predict the scheme will attract national and international attention, positioning Gujarat as a global startup hub.
Applications are open via the startupgujarat.in portal, with i-Hub overseeing the selection process. Startups must engage with approved nodal institutes for mentorship and project evaluation. The scheme, valid until August 6, 2025, is expected to disburse INR 500 crore over its tenure, ensuring Gujarat remains a fertile ground for young innovators.
Disclaimer: This article is based on information from government announcements, i-Hub Gujarat, GUSEC, and startupgujarat.in as of June 22, 2025. Data is sourced from official statements and web resources. Readers are advised to verify details through official channels for the latest updates.