Lok Sabha Question No. 2563 (UNSTARRED), answered on 2025-12-16
Subject: Chandigarh Startup Policy 2025
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2563.

TO BE ANSWERED ON TUESDAY, THE 16 TH  DECEMBER, 2025.

## CHANDIGARH STARTUP POLICY 2025

## 2563.  SHRI MANISH TEWARI:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the reasons for Chandigarh UT Administration took over seven years from the initial drafting in 2018 to formal launch in April 2025- to notify the 'Chandigarh Startup  Policy  2025'  despite  the  earlier  launch  of  the  national  Startup  India Policy;
- (b) whether the Chandigarh Administration has failed to operationalise the Startup Policy, 2024, even six months after its notification;
- (c) the number of startups registered under the policy till date and the number of Startups that have so far availed any of the financial or non-financial incentives promised;
- (d) the reasons for the delay in operationalising the policy despite the administration having earmarked an annual corpus of 10 crore for five years;
- (e) the  concrete  timeline  by  which  e-portal  will  be  made  functional,  guidelines notified, and first tranche of benefits disbursed; and
- (f) whether the Government has any plans to issue a status-report directive to the UT to ensure timely execution and transparency?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) to (f): As per the Chandigarh Administration (the Administration), the Union Territory (UT)  of  Chandigarh,  as  a  small  UT  with  a  compact  institutional  ecosystem, initially  focused  on  promoting  uptake  of  the  national  Startup  India  initiative rather  than  issuing  a  separate  UT-specific  policy.  Over  time,  with  evolving needs  of  local  startups  and  multiple  directives  from  Central  Government encouraging  all  States/UTs to adopt structured policy frameworks, the Administration  undertook extensive inter-departmental consultations, financial structuring,  and  stakeholder  engagements.  This  process  culminated  in  the formal notification of the Chandigarh Startup Policy on 29 April 2025.

Following the notification, the Administration has been developing implementation guidelines, incentive disbursement rules, institutional mechanisms,  and  the  online  application  workflow, all of which  require mandatory administrative and financial approvals. No direct financial incentives have been disbursed yet by the Administration, as finalisation of operational guidelines,  committee  structures,  and  an  auditable  application  system  is essential to ensure transparency, accountability, and responsible utilisation of the earmarked annual corpus of Rs. 10 crore.

Over the period, Chandigarh's ecosystem has continued to develop through implementation of various measures for development of startup ecosystem on Pan- India basis under the Startup India initiative. As a result, while Chandigarh had fewer than 10 DPIIT-recognised startups in 2016, the number has grown to over 633 as of 31 st  October 2025, Also, recognised startups from Chandigarh created less than 300 jobs in 2017, while they have created 6,260 jobs as of 31 st   October  2025.  Chandigarh  has  also  demonstrated  notable  progress  in women's  participation  in  entrepreneurship.  There  were  less  than  10  DPIIT recognised startups with at least one-woman director/partner in 2017, which has increased to 297 as of 31 st     October 2025.

DPIIT  recognised  startups  from  Chandigarh  have  also  availed  various  key benefits under the Startup India initiative. As of 31 st     October 2025, Alternative Investment Funds  supported  under  the  Fund  of  Funds  for  Startups  (FFS) have invested Rs. 21.30 crore in startups from Chandigarh. Under the Startup India Seed Fund Scheme (SISFS), supported incubators have approved Rs. 2.89 crore to startups  from  Chandigarh.  Additionally, under  the Credit Guarantee  Scheme  for  Startups  (CGSS),  startup  from  the  UT  has  been guaranteed  loan amounting to  Rs. 15 lakh. 15 startups from Chandigarh have also received certificate of eligibility under Section 80-IAC of the Income Tax Act 1961, to claim a deduction of an amount equal to 100% of the profits and gains derived from eligible business for three consecutive assessment years.

*******