Policy Update
Purbaa Jagannath
Background
In an era of fast technological change, startups now play an important role in the growth of the Indian economy and job creation, innovation, and digital inclusion. The Indian startup ecosystem, however, has traditionally been marred by the lack of geographical inclusivity in terms of access to VC funding, mentorship, incubation spaces, technological resources, and network of businesses in big cities. The challenges faced by entrepreneurs in Tier-II and Tier-III cities can be greater in transforming their innovative business ideas into commercially viable ventures.
In response to these issues, the Government of India launched the GEN-NEXT Support for Innovative Startups (GENESIS) scheme in July 2022. It was launched by Prime Minister Narendra Modi and its implementation is made by the Ministry of Electronics and Information Technology (MeitY) under the MeitY Startup Hub (MSH), an independent business division of Digital India Corporation. Formal administrative approval of the scheme was given on 4 July 2023 for a total outlay of budget of ₹490 crore for five years.
GENESIS aims to build the technology start-up ecosystem in Tier-II and Tier-III cities and emerging towns in India. It aims to find, foster, invest and scale technology-based startups through the interaction of startups and government institutions, incubators, investors, academic institutions and corporate partners. The general goal of its activities is to raise awareness about inclusive entrepreneurship and to eliminate the regional disparity in access to innovation opportunities.
The four main areas of support in the scheme are: Entrepreneur-in-Residence (EiR) support for someone who is an early stage innovator, pilot or proof of concept funding, investment support, and funding for selected deep tech startups. GENESIS will work to foster an ecosystem for entrepreneurship to thrive, not just in India’s existing metropolitan innovation hubs, but across the entire country thanks to its financial support and incubation, mentorship, capacity building and ecosystem development initiatives.
Functioning
The institutional architecture and implementation mechanism for GENESIS is in the hands of MeitY Startup Hub under Ministry of Electronics and Information Technology. The scheme is implemented by around 50 implementing agencies preferably in Tier-II and Tier-III cities. These agencies span from incubators and accelerators, academic and research institutions, investment platforms and organisations that support entrepreneurship. The implementing agencies bridge the gap between eligible startups and funding opportunities, mentoring, incubation facilities, industry networks and other institutional support. The decentralised implementation model aims to enhance local innovation ecosystems, rather than focus only on established startup centres.
GENESIS offers differentiated support in the form of four components of financial support based on the developmental stage and needs of startups.
Entrepreneur-in-Residence (EiR) Support: This component beneficially helps students, aspiring entrepreneurs, researchers and early stage innovators to test their business concepts and create initial prototypes. Financial support can be provided up to a maximum of ₹ 10 lakh per start-up which does not require matching funds.
Pilot & Proof-of-Concept (PoC) Support: This part helps companies that have developed beyond the ideation phase and need funding to pilot and validate their product or technology in real-world environments. There is no need for matching funds from the private sector in the scheme and the indicative funding range is ₹40-50 lakh per startup.
Investment Support: This element is intended to assist startups in the process of raising investment funds, developing their product and/or commercialising the technological innovations. The indicative amount of funding per startup is Rs 40-50 lakh and it requires 1:1 matching funds from the private sector. This is a mechanism to unlock private funds and government funds.
Deep-Tech Startup Support: This component supports selected startups, working on technology intensive and of high impact solutions. The funds can be provided up to ₹1 crore to every startup without the matching-funds requirement, subject to the selection criteria of the scheme.
The funding ceilings and ranges provide a reference for the scheme’s funding and are not to be understood as guarantees for all applications.
Bringing reforms in the functioning of Startup Resources: GENESIS aims at amalgamating the available schemes, programmes and resources of MeitY to ease the process of coordination, utilization of resources and accessibility of resources. The GENESIS Startup Platform is envisioned as a one-stop play which will provide information on available initiatives, funding opportunities and institutional support to entrepreneurs. The scheme also aims to foster synergy across various initiatives and schemes under the Ministry of Electronics and IT, such as Artificial Intelligence, semiconductor and digital public infrastructure.
Capacity Building and Ecosystem Development includes workshops, boot camps, conferences, mentoring programmes, networking opportunities and partnerships with industry to supplement financial assistance. These activities are designed to enhance the managerial, technical and commercial skills of the entrepreneurs. GENESIS aims to enhance access to technical expertise, market opportunities and sustainable business networks by establishing relationships between startups, academia, investors, government and corporations.
Performance
Expanding technology entrepreneurship from metropolitan centres is an important policy intervention, and it is this that is represented by GENESIS. The performance of the scheme, however, needs to be measured by separating out the financial commitments approved by the scheme, the scheme’s targets, activities for implementation and the measurable outcomes that can be independently verified.
The scheme places a strong financial backbone in place to drive innovation. The sanctioned spending of ₹490 crore is spread over five years, with ₹450 crore earmarked for pilot and investment funding, including to support early-stage and deep-tech startups, and the remaining ₹40 crore for branding and activities. The financial plan has been approved and resources are allocated over the 5 year implementation period, indicating an intention to increase the support over the course of the programme. However, the approved allocation is not a measure of the amount actually released and used. It is important to have new expenditure and utilisation data for a full performance evaluation.
Secondly, an institutional mechanism has been built to connect with the start-ups by means of implementing agencies and specialized funding aspects of the scheme. The MeitY Startup Hub scheme’s four funding segments are detailed on the official Startup Hub portal, along with details on the agencies that can help implement the scheme. This framework allows to support entrepreneurs in various stages of their development, ranging from validation of the idea stage to the pilot stage, investment stage, and deep-tech commercialisation stage.
The activities of successive cohorts of Entrepreneur-in-Residences also signify ongoing activity of the programme. For instance, MeitY Startup Hub has announced the GENESIS EIR Cohort 3 at the GENESIS NextGen Startup Summit, Coimbatore on 4 August 2026. The application window for this period was open until 3 September 2026.
Third, GENESIS fills a big funding gap for early-stage financing. It offers support of up to ₹10 lakh in its EiR, ₹50 lakh in pilot funding and ₹1 crore in selected deep-tech startups. These provisions can be useful for innovators to overcome the financial hurdles of prototype development, product testing and commercialisation. The investment component’s matching-fund requirement is also intended to spur the involvement of the private sector. The effectiveness of these mechanisms would, however, rely on how many startups are funded, how quickly they are funded and the capacity of the funded enterprises to move towards commercialisation.
Fourth, the institutional design of the scheme shows a focus on building capacity in startups in smaller cities. GENESIS aims to boost entrepreneurship networks in Tier-II and Tier-III locations, by encouraging the implementing agencies to do so, and to ensure access to mentorship and technical resources. However, the distribution of implementing agencies by area does not provide sufficient proof of whether startups in under-served districts, in smaller towns and in underdeveloped areas are getting equitable benefits.
One of the key challenges in assessing the scheme is the lack of extensive, publicly-available outcome data. The official scheme pages are used to give information on objectives, the funding for the scheme, the implementation arrangements and programme activities, and this cannot be interpreted as evidence of completed outcomes. To undergo a rigorous assessment, consolidated data on actual disbursements, startups supported, jobs created, follow-on investment, intellectual property, revenue growth, business survival and geographical distribution of beneficiaries is needed.
Impact
GENESIS can play a part in creating a more geographically inclusive and innovation-driven start-up ecosystem in India. The implications for access to finance, regional entrepreneurship, technological innovation, employment and institutional capacity provide insights into its impact.
The scheme aims to overcome the geographical clustering of entrepreneurial opportunities for the first time. It also provides a policy avenue for innovators from Tier-II and Tier-III cities to get incubation, mentorship and funding from institutional and financial support in these cities. This is especially true for entrepreneurs with good and feasible technological ideas who do not have a network of investors or access to specialized startup facilities. The scheme, acting as an enabling instrument, can play a role in addressing regional disparities in participation in India’s innovation economy, if implemented fairly.
Secondly, GENESIS can help to move from an innovative idea to a commercially viable product. Problems in funding prototype development, testing, product validation, and first-time market entry are common challenges faced by early-stage entrepreneurs. The scheme offers a coherent pathway to solve these issues in its EiR and pilot funding aspects. The investment and deep-tech elements also aim to support businesses that have more complex technological and business needs. This assistance may be especially crucial for deep-tech businesses, where the creation process can involve extensive research laboratory and growth and demand high technological abilities and financial investment before a possible commercial return.
Thirdly, the scheme may help provide jobs and local economic development. The success of tech startups can generate direct jobs in the product development, software engineering, research, marketing, management and other special functions. Successful enterprises can also create indirect jobs in the supply chain and service provision, as well as related businesses. GENESIS could help to keep skilled people in smaller cities, as it promotes entrepreneurship, and offer alternatives to migration to the main employment centres. But the extent of this effect needs to be documented with reliable employment and business performance statistics.
Fourth, GENESIS can help in improving cooperation between government, academia, industry and private investors. It focuses on implementing agencies, mentoring, capacity building and corporate partnerships giving opportunities to link academic research and local innovation with commercial markets. These connections can enhance access to technical expertise, specific facilities, IP protection, and even potential customers. The scheme’s matching-fund provision for investment support can also be used to promote private investors to invest in technology businesses.
Lastly, the scheme is in line with the greater vision of the Digital India, Startup India, and Atmanirbhar Bharat, which promote technological abilities and entrepreneurship within the country. Emerging technologies like Artificial Intelligence, Information Technology, Cyber Security, Semi Conductors and others can be areas where support for innovators can help in technological self-reliance of India. However, these effects are dependent on the quality of business support, availability of long-term funding and to the capacity of supported businesses to sustain themselves and thrive beyond the early duration of support.
Emerging Issues
While GENESIS has a strong vision of inclusivity and a multi-level funding system, it has a number of challenges to address in terms of structure and functioning.
Regional Disparities in Access: While Tier-II and Tier-III cities are prioritized, the availability of implementing agencies does not guarantee equitable access to the scheme to all eligible regions. Small towns, rural areas and regions with lesser tech infrastructure will continue to present problems for startups in accessing application information, mentors, investors, and specialised facilities. It is difficult to assess if there is transparency within regions on reaching those with the highest unmet need for support.
The scheme’s funding components have different eligibility requirements and financial conditions, with funding accessibility and private-sector participation. Specifically, the 1:1 matching-fund requirement for investment support can be a disadvantage to promising startups, when they lack access to private investors. This can cause conflicts with the scall of private capital and proactiveness of entrepreneurs in areas with less developed venture capital networks. The success of the scheme will rely on the credibility of the schemes implementing agencies in making investor connections and the availability of alternative funding mechanisms to the early-stage innovator.
Implementation and Institutional Capacity: GENESIS is highly dependent on the institutional capacity of the implementing agencies. Incubators and entrepreneurship-support institutions can have varying technical, financial, mentoring and network capabilities. Imbalanced institutional capability may lead to disparities in quality of support received by startups. Therefore, it is imperative to have clear performance standards, capacity building of staff, regular evaluations and enhanced coordination between MeitY Startup Hub and the implementing agencies.
Transparency and Outcome Measurement: One of the key issues in the evaluation of GENESIS is the lack of a unified source of information on its implementation, and of timely changes. The number of startups which have been supported, the amount of funding provided and the impact of that funding are not defined by approved budgets and announced programme goals. The scheme will benefit from having a dashboard with all expenditure data, information about beneficiaries by state, city, information about the stage of funding, information about employment, and follow-on investment data, which is public and available. This transparency would enhance accountability and facilitate better assessments.
Commercialisation and Start-up Sustainability: Just because a start-up receives funding at the beginning doesn’t mean that it will be sustainable. Problems in securing customers, product-market fit, protecting intellectual property, complying with regulatory requirements and raising follow-on capital remain challenges for startups. However, deep-tech companies can face other hurdles due to longer research and development times and expensive prototyping. Therefore, GENESIS should be addressing the broader issue of access to the market, technical mentoring, commercial partnerships and investment opportunities after first financial support is given.
Coordination with Existing Startup Schemes: GENESIS is part of a broader range of government initiatives for entrepreneurship, such as TIDE 2.0, SAMRIDH and Startup India programmes. Although coordination may help minimise duplication and maximise use of resources, there is a risk that there may be an overlap of eligibility requirements or unclear mechanisms for referrals, which can make it challenging for startups to select the most appropriate programme. Potential for improved integration of application information, clarity on eligibility guidance and structured referral pathways for improving access and administrative burden.
While it is important to start with a focus on Tier-II and Tier-III cities, geographical criteria is not sufficient to ensure inclusive participation. Women entrepreneurs, entrepreneurs from disadvantaged social backgrounds, entrepreneurs that are first generation entrepreneurs and innovators from underserved communities may be at a disadvantage in terms of networks, finance, mentoring and access to technical resources. The disaggregated beneficiary data would facilitate the assessment of whether beneficiaries of the scheme are reached and what kind of support might be needed.
Way Forward
Implementing GENESIS is important to ensure that it has a long-term impact and contributes to India’s startup ecosystem in a meaningful way. The implementation of GENESIS needs to go beyond just providing financial assistance and establish a clear, measurable, and inclusive support system that can benefit startups across the country.
MeitY should first adopt the policy of increased monitoring and public accountability by providing a regularly-updated GENESIS performance dashboard. The dashboard should clearly differentiate between approved allocations and actual expenditure/disbursement and highlight the number of applications received, startups selected for funding, and the number of enterprises moving through various stages of development. Data by state and city level, and indicators on employment, follow-on investment, revenue growth, IP and business survival would be a better basis for assessing performance.
Secondly, the scheme needs to be more targeted in terms of its regional outreach. Implementing agencies should organize entrepreneurship awareness programmes and application workshops, innovation challenges and mentoring in underserved districts and smaller towns. Existing networks and potential partnerships with public universities, technical universities, women’s universities and local entrepreneurship networks could help to identify innovators outside of the established startup ecosystems. Regional performance indicators must include the number of implementing agencies and that of diversity and geographic distribution of start-ups they provide.
Thirdly, complementary financing mechanisms need to be strengthened for access to finance. The investment-support component should also continue to promote private-sector involvement, but enhance investor access to start-ups in areas lacking in venture-capital networks. Implementing agencies have the potential to organize investor–startup meetings, build regional investor networks and assist entrepreneurs to develop financial forecasts and business plans. More information about funding requirements and eligibility would also help to minimize applicant uncertainty.
Fourth, the capacity of implementing agencies should be enhanced with the regular training, standardisation of selection process and transparency of performance evaluation. MeitY Startup Hub needs to set a common set of reporting parameters and evaluate the implementing agencies as per the measurable outcomes like quality of mentoring, funding turn around time, commercialisation support and progress of start-up. Good practice sharing among high-performing incubators could help to minimise implementation variations among regions.
Fifthly, a more robust process should be put in place between prototype development and commercialisation/scaling-up. Access to testing facilities, IP support, regulatory advice, industry partnerships, procurement opportunities, and follow-on investment networks are just some of the other areas that should be covered with financial support. Longer-term mentoring and specialised infrastructure to accommodate research intensive development cycles could help deep-tech startups.
Lastly, GENESIS should increase its efforts to ensure inclusive entrepreneurship by implementing focused outreach to women entrepreneurs, first-generation entrepreneurs and underserved communities, and monitoring their participation in a clear and objective manner. The linkage with other government start-up initiatives also needs to be strengthened in terms of better information systems and referral procedures. A regular independent review using evidence of implementation and outcomes, would assist to identify if the aims of the scheme are being met and inform future policy changes.
GENESIS can reinforce its position as a decentralised innovation, regional economic development and technology-based entrepreneurship tool, through these measures. Long-term success will not only rely on investments available, but also on the allocation of services and resources, the institutional capacity of implementing agencies and the capacity of the supported startups to grow sustainable and commercially viable enterprises.
References
- Ministry of Electronics and Information Technology. (n.d.). GEN-NEXT Support for Innovative Startups (GENESIS). Government of India. https://www.meity.gov.in/offerings/schemes-and-services/details/gen-next-support-for-innovative-startups-genesis-gN5AjNtQWa
- Ministry of Electronics and Information Technology. (2023, July 4). Administrative approval for the implementation of the scheme entitled “Gen-Next Support for Innovative Startups (GENESIS).” Government of India. https://msh.meity.gov.in/assets/GENESIS_Admin%20Approval.pdf
- MeitY Startup Hub. (n.d.). Gen-Next Support for Innovative Startups (GENESIS). Ministry of Electronics and Information Technology, Government of India. https://msh.meity.gov.in/schemes/genesis
- MeitY Startup Hub. (n.d.). GENESIS scheme brochure. Ministry of Electronics and Information Technology, Government of India. https://msh.meity.gov.in/assets/Brochure_GENESIS.pdf
- Press Information Bureau. (2024, July 30). Press release on MeitY’s technology startup support initiatives, including GENESIS. Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2038380&lang=2®=48
- Press Information Bureau. (2026, August 24). GENESIS Entrepreneur-in-Residence (EIR) Cohort-3 launched at GENESIS NextGen Startup Summit – Coimbatore Edition. Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2302611&lang=1®=3
- MyScheme. (n.d.). GEN-NEXT Support for Innovative Startups (GENESIS). Government of India. https://www.myscheme.gov.in/schemes/genesis
About the Contributor
Purbaa Jagannath is a Research Intern at the Impact and Policy Research Institute (IMPRI), working on policy writing. She is currently pursuing a Master’s in Social Work (Women-Centred Practice) at TISS Mumbai, and holds a Bachelor of Social Work (Honours with Research), with a minor in Political Science, from University of Delhi. Her research interests span social work, political science, policy research and grassroots fieldwork across India, with recurring focus areas including youth empowerment, governance and community development.
Acknowledgement
I would like to express my sincere gratitude to IMPRI (Impact and Policy Research Institute) for providing an opportunity to undertake policy research and contribute to discussions on important government initiatives. I also acknowledge the Ministry of Electronics and Information Technology, MeitY Startup Hub, and the Press Information Bureau for making official scheme documents, programme information, and government announcements publicly accessible, which supported the preparation of this article.
Name of the Reviewers
Tanisha and Khushi
Disclaimer
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of IMPRI (Impact and Policy Research Institute) or any affiliated organisation. The article is based on publicly available government documents and official announcements and is intended solely for academic and research purposes. Scheme provisions and programme announcements have been distinguished from verified implementation outcomes wherever applicable.
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