The Rashtriya Udyamita Vikas Pariyojana is a national-level entrepreneurship development program created by the central government of India to promote greater start-up innovation and employment generation across tier-1 and tier-2 towns and cities in the country.
Key Features of the Scheme
- Launched in 2023 with an allocation of ₹15,000 crore
- To be implemented over 5 years till 2028
- Focus areas include enabling infrastructure, mentorship support, market access
Strategic Objectives
- Support start-up ecosystem in over 300 tier-2 and tier-3 cities
- Enable creation of over 1 million new startups by 2028
- Facilitate direct and indirect employment for over 15 million people
Key Initiatives Envisioned
State-level Incubation Centers
- Setup state-level startup incubation centers in all 28 states and 8 UTs
- Equipped with shared infrastructure, testing labs and design facilities
Mentorship Programs
- Central pool of qualified mentors created by industry experts and alumni
- Customized mentorship for idea validation, product development, fundraising etc.
Alternative Investment Platform
- Dedicated start-up funding platform to connect with angel investors and VCs
- Improved access to diverse sources of finance beyond bank lending
Transforming Educational Curriculum
- Promote innovation and entrepreneurship-focused tracks/electives in colleges
- Applied research projects and credits for startups initiation
Expected Outcomes by 2028
- Over 300 new tier-2 and tier-3 city based start-up hubs
- Direct employment for 5 million people
- Indirect job creation for 10 million through multiplier effect
- Over 50% digital/tech focused start-ups among new entities
With a substantial monetary outlay and implementation framework targeting key enablers, the RUVP scheme aims to catalyze the next phase of start-up revolution from India’s smaller towns and cities harbouring promising entrepreneurial talent and ideas but lacking institutional support mechanisms.
Statistical Overview of Program
| Parameter | Allocation | Targets |
| Budgetary Outlay | ₹15,000 crores | NA |
| Duration | 2023-2028 | NA |
| Number of Beneficiary Cities | 300+ | Tier 2 and Tier 3 |
| Startup Incubation Labs Envisioned | 36 at state level | NA |
| Fund Allocation per Lab | ₹50 crores | NA |
| New Startup Creation Target | NA | 1 million+ |
| Direct + Indirect Employment Target | NA | 15 million |
State Government Partnerships
- Scheme implementation in collaboration with state industry departments
- States provide 50% matching funds for establishing incubation centers
- Support local entrepreneur mobilization and registration ease processes
Priority Sector Focus Areas
- Special incentives for startups in strategic fields – EV, batteries, semiconductors
- Agribusiness, circular economy, climate action technology solutions
- Support for crafts, heritage product innovations on e-commerce platforms
Inclusion Initiatives
- Special assistance scheme for new startups led by women and SC/ST community
- Customized capacity building and initial innovation funding support
- Reserved incubator seats and facilitated access to venture capital deals
Online Governance and Impact Assessment
- Centralized portal for monitoring key implementation parameters
- Beneficiary startup registration and allotment system
- Independent study for evaluating employment and enterprise outcomes
Latest Developments
- 15 state level incubation facilities already operational in first phase
- 5,000 startups initiated last year enabled employment for 25,000 people
- 40% of incubator seats already allocated to rural/semi-urban startups
- VC fund collaboration for agritech, rural fintech and livelihood startups
- Rural entrepreneurship syllabus addition across 500+ engineering colleges
Rural Impact Metrics
- 2 rural start-up focused centers in each state for idea incubation
- 1 lakh self-help group members provided orientation on micro-enterprise
- 50,000 rural entrepreneurs mobilized for assisting prototype development
- Startup Garage contest conducted across 100 tier-3 and tier-4 towns
- Direct rural startup job creation 32,000; indirect 1.1 lakh (Aug 2023 – Jan 2024)
The Rashtriya Udyamita Vikas Pariyojana aims to drive the next phase of democratized entrepreneurship-led growth beyond metropolitan hubs through funding, infrastructure and skill development across India’s smaller urban centers harboring high innovation potential.
