Maharashtra Launches 2025 Startup Policy To Boost Innovation Economy
Maharashtra has rolled out a bold and inclusive Startup, Entrepreneurship and Innovation Policy 2025. The comprehensive policy blueprint, approved by the state cabinet, outlines a mission to formally recognise 50,000 startups and support 1.25 lakh entrepreneurs over the next five years, signalling a massive shift in how the state plans to drive economic growth through grassroots innovation.
Already leading the national startup charts with over 29,000 DPIIT-recognised ventures as of May 2025, Maharashtra is now aiming to deepen and diversify its ecosystem. The policy focuses on creating robust infrastructure, extending funding support, and ensuring that innovation is no longer concentrated in urban clusters alone. At the heart of this transformation is the newly established Maha-Fund, a Rs 500-crore corpus dedicated to empowering 25,000 youth entrepreneurs from across the state. Young graduates and ITI-trained individuals will be able to access affordable loans ranging from Rs 5 to 10 lakh at a subsidised 3% interest rate. A rigorous three-tiered selection process will help filter the most promising business ideas for incubation and scale-up.
To support this wave of innovation, Maharashtra is also building physical infrastructure to match its ambitions. A 300-acre mega project, the Maharashtra Innovation City (MIC), is slated to come up near Navi Mumbai International Airport. Envisioned as a global innovation district, MIC will bring startups, corporates, universities and public institutions together under one collaborative ecosystem aimed at commercialising R&D and unlocking investment.
What sets this policy apart is its decentralised approach. Micro-incubators will be embedded within ITIs, polytechnic institutions, and colleges across the state, ensuring that semi-urban and rural innovators are not left behind. Additionally, six regional hubs will be created to tailor incubation support to local challenges, industries, and resources, expanding access to innovation infrastructure across the state.
In a pioneering move, Maharashtra has also mandated that every state government department earmark 0.5% of its annual budget for innovation-led initiatives. This not only mainstreams entrepreneurship into governance but allows startups to co-develop solutions in sectors such as public health, education, agri-tech, and renewable energy. Startups selected during the Maharashtra Startup Week will be eligible for pilot project work orders worth up to Rs 25 lakh, backed by the government. To prevent post-award financing delays, mechanisms are being created to allow entrepreneurs to avail loans against public sector orders, removing a major barrier to cash flow.
The policy also supports international patent filings, product certifications, and global startup expo participation, ensuring Maharashtra’s entrepreneurs are globally competitive. All programmes will be monitored and implemented by the Maharashtra State Innovation Society, ensuring coordination, accountability, and data-backed outcomes. Maharashtra is not merely encouraging startups, it is embedding them into the very foundation of its economic strategy, from the streets of Mumbai to the farthest corners of Marathwada. Whether this vision succeeds will rest on execution, but the roadmap is one of the most comprehensive and inclusive ever attempted by an Indian state.
