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Chris John

Published on: Sep 10, 2026

Madhya Pradesh Incubation and Startup Policy

Madhya Pradesh, the second-largest state in India, is one of the fastest-growing states, boasting significant investments and economic development in recent years. The state's robust infrastructure and supportive policy environment have facilitated industrial growth, positioning Madhya Pradesh as a prime destination for high-tech industries such as heavy engineering, IT, telecommunications, ESDM, automobiles, textiles, cement, pharmaceuticals, and agro and food processing. The establishment of dedicated industrial clusters throughout the state has fueled the growth of industries, thereby increasing the demand for incubation and plug-and-play facilities for upcoming entrepreneurs. This article discusses the features of the Madhya Pradesh Incubation and Startup Policy.

Vision, Mission and Objectives

In alignment with the Government of India's "Startup India" initiative, the Government of Madhya Pradesh has envisioned creating an innovative and technological entrepreneurial ecosystem through its Incubation and Startup Policy, aiming to nurture and encourage the startup culture within the state.

Vision

The central vision of Madhya Pradesh is to establish the state as a preferred destination for startups and incubation centres, offering a dynamic ecosystem that supports an entrepreneurial culture.

Mission

The mission of the Madhya Pradesh Incubation and Startup Policy includes:

  • Building a sustainable ecosystem for innovation, research and development, and manufacturing within the state.
  • Aligning Madhya Pradesh with the Government of India's "Startup India" initiative.

Objectives

  • Strengthening and promoting the startup culture by nurturing entrepreneurial skills.
  • Encouraging the establishment of new technological business incubation centres and strengthening existing ones.
  • Inspiring the state's youth to develop innovative ideas.
  • Promoting entrepreneurship among youth to foster sustainable, inclusive socio-economic development across Madhya Pradesh.
  • Creating employment opportunities for the youth within the state. Explore startup funding options.

Policy Focus Areas

The Madhya Pradesh Incubation and Startup Policy focuses on three core areas essential for a startup's growth:

  1. Availability of "Plug and Play" Incubation Facility
  2. Funding Support and Incentives
  3. Startup Handholding

Innovative Incubation Network

  • The state government will support the establishment of incubation centres in engineering, professional, and management institutes across Madhya Pradesh, offering "Plug & Play" model facilities for students and entrepreneurs.
  • Promotion of an Innovative Incubation Network will foster a collaborative platform among host institutions and incubators, enabling the sharing of best practices and understanding startup needs. Learn from other states' policies.
  • Selected institutes will be encouraged to host incubators specializing in various fields, facilitated by an online portal connecting state-based incubators on a single platform.
  • This network will assist startups in identifying funding support, regulatory assistance, and legal compliance with government regulations.

Venture Capitalist Network/Angel Investors

  • The identification and selection of angel investors or venture capitalists are crucial for startups. The state government encourages forming a network of such investors to bridge funding gaps for early-stage startups.
  • This network will bolster a conducive and sustainable startup ecosystem and serve as an accelerator for startups within the state. Understand more about venture capitalist networks.

Incentives

The incentives offered under the MP Incubation and Startup Policy are available to startups and incubators in Madhya Pradesh until March 2021. These benefits are in addition to incentives offered by the Indian Government, ensuring no duplicate claims under state government policies. Compare incentives with policies in other states.

Incentives for Incubators

  • The government facilitates the establishment of incubators in government and eligible private institutions and prominent industry associations. These incubators provide essential facilities like workspace, computers, the internet, business administration, and training.
  • State support will be available for incubators for up to three years, extendable to five years, contingent on performance.

Capital Assistance

  • Eligible host institutions receive a capital grant of up to 50% for fixed cost investment in their incubators, capped at INR 50 Lakhs. This funding extends to existing incubators looking to expand, subject to performance evaluation over two years.

Operational Assistance

  • Operational assistance covers up to 50% of recurring expenses, with a limit of INR 5 Lakhs per annum for eligible incubators.

Stamp Duty & Registration

  • Eligible incubators receive 100% stamp duty and registration fee reimbursement on land purchase/lease agreements upon commencing operations.

Other Incentives

  • Mentoring Assistance
  • Startup Competition Assistance

Incentives for Entrepreneurs or Startups

Entrepreneurs/Startups in incubators must be registered as a company or under the MSMED Act to avail of these incentives.

Interest Subsidy

  • Registered startups receive an 8% annual interest subsidy for three years on loans from scheduled banks or financial institutions, capped at INR 4 Lakhs annually.

Lease Rental Subsidy

Patent/Quality Promotion Subsidy

  • Cost reimbursement is provided for patent/quality certification, up to INR 2 Lakhs for domestic and INR 5 Lakhs for international certifications, within the policy period of five years. Limitations apply to two certifications per category.

Other Incentives

  • Startup Marketing Assistance
  • Credential Development Assistance

Policy Applicability

The policy applies across multiple domains, including IT, IoT, e-commerce, manufacturing, biochemical technology, healthcare, green energy, education, and social entrepreneurship, guided by the State Level Implementation Committee's approval.

Compare these applications with those in Andhra Pradesh.
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Frequently Asked Questions

Common questions about Madhya Pradesh Incubation and Startup Policy Insights.

The central vision of the Madhya Pradesh Incubation and Startup Policy is to establish the state as a preferred destination for startups and incubation centers by offering an enabling and dynamic ecosystem to support entrepreneurial culture in the state.
The Madhya Pradesh Incubation and Startup Policy has three core focus areas: the availability of "plug and play" incubation facilities, funding support and incentives, and startup handholding.
The policy encourages the establishment of incubation centers within various engineering colleges, professional colleges, and management institutes across Madhya Pradesh. These incubation centers would be promoted to develop an Innovative Incubation Network to build a collaborative platform among host institutions and incubators.
The policy offers capital assistance in the form of a maximum grant of 50% for fixed cost investment up to INR 50 lakhs for setting up incubators. It also provides operational assistance of up to 50% of actual costs, with a limit of INR 5 lakhs per annum, as well as stamp duty and registration fee reimbursement.
Eligible startups can avail interest subsidy of 8% per annum for three years on loans, with a limit of INR 4 lakhs per annum. They can also get 25% lease rental subsidy for three years, up to INR 3 lakhs per annum, and reimbursement for patent/quality certification costs.
The Madhya Pradesh Incubation and Startup Policy is applicable to domains such as Information Technology (IT), IoT, e-commerce, manufacturing, biochemical, food technology, agriculture, textiles, healthcare, pharmaceuticals, agri-processing, green energy, clean technology, education, social and rural entrepreneurship, and any innovative idea or technology approved by the State Level Implementation Committee.
The policy encourages the formation of a statewide Angel Investor or Venture Capitalist network to bridge the gap between startups and their early-stage funding requirements. This network would also play a vital role as an accelerator for startups in the state.
The incentives offered in the Madhya Pradesh Incubation and Startup Policy are applicable to startups and incubators in the state until March 2021.
Yes, startups and incubators are entitled to other incentives under other policies or schemes of the Government of India and Madhya Pradesh, in addition to the incentives offered under this policy. However, they cannot claim the same incentives under any other policies or schemes of the state government.
One of the key objectives of the Madhya Pradesh Incubation and Startup Policy is to promote entrepreneurship activities among the youth of the state to enable sustainable and inclusive socio-economic development across Madhya Pradesh, as well as develop and promote employment opportunities for the youth within the state.