The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath on Friday, has approved the Uttar Pradesh Startup Procurement Scheme-2026 — a direct channel for startups to sell to the state government. Under the scheme, a dedicated UP Startup E-Marketplace will list innovative products, services and solutions developed by eligible startups, and government departments will procure them from their approved budgetary provisions. The UP Startup Mission will establish, operate and maintain the marketplace.

The framework sets meaningful thresholds. Eligible startups can access direct procurement opportunities of up to Rs 50 lakh, enhanced to Rs 1 crore for solutions in specified sunrise sectors — deep technology, AI, drones, green energy, climate technology and advanced manufacturing. Limited tenders of up to Rs 1 crore will be run exclusively for startups, and departmental innovation funds will support pilots, proofs of concept and procurement.

The same cabinet session also cleared the Uttar Pradesh AI Mission, which targets incubating 100 startups and skilling 5 lakh youth — alongside a Rs 1,725-crore skill training and employment scheme and a Sustainable Aviation Fuel manufacturing promotion policy.

For founders, government procurement has long been the hardest market to crack — long tender cycles and eligibility clauses favour incumbents. A startup-only e-marketplace with work orders from departments changes the equation: it gives early-stage companies a revenue anchor, a reference customer and new direct and indirect employment across the state.

Combined with the AI Mission, UP is effectively assembling a full stack for its startup economy — capital through policy, skills through training, and now the government itself as a customer.

Why it matters for founders

If you are a DPIIT-recognised startup in deeptech, AI, drones or climate, UP just became one of the easiest government customers in the country: Rs 50 lakh to Rs 1 crore procurement doors are opening on the new e-marketplace. Register under the UP Startup Policy, list your offering early, and pitch departments with pilots — the first big customer you need might be the government itself.