India’s 2025-26 Startups Budget Insights and State Wise Schemes

India’s states have rolled out their budgets for FY2025–26 and the numbers are massive. From Uttar Pradesh and Maharashtra each planning to spend over ₹7.5 lakh crore, to Bihar doubling down on rural education, these budget blueprints aren’t just documents. They’re roadmaps to development, growth, and opportunities.

Let’s unpack what each major state is doing and more importantly, what it means for India’s startups, small businesses, and the common citizen.

Big Numbers, Bigger Priorities

Here’s a quick glance at what the biggest spenders have planned:

From expressways in UP to startup funds in Maharashtra, the budgets reflect India’s two-track growth model: industrial expansion and inclusive development.

What Are States Spending On?

Let’s decode where the money is flowing.

1. Education is the Backbone

Most states are spending 10–20% of their total outlay on education:

• UP: ₹1.03 lakh cr across school education, scholarships, and culture.
• Bihar: Over 21.7% of its budget the highest goes into education and skilling.
• Maharashtra: ₹1.06 lakh cr set aside for education and cultural development.

🔑 Why it matters: This is a long-term bet. More educated youth = better talent pool = stronger workforce for future industries and startups.

2. Healthcare Gets Digital and Decentralized

While not the largest chunk, 5–7% of budgets go to healthcare:

• Maharashtra: ₹30,920 cr including ₹943 cr for its Jan Arogya insurance scheme.
• Tamil Nadu: ₹1,048 cr to maternity care (Dr. Muthulakshmi Reddy scheme).
• West Bengal: 70,000 ASHA workers and Anganwadis to get smartphones (₹200 cr).

👩🏽‍⚕️ What this means: Better public health boosts productivity. And digitisation opens new markets for healthtech startups and rural innovators.

3. Infrastructure = Opportunity

Every major state has budgeted heavily for roads, bridges, and urban development:

• UP: ₹38,343 cr on roads + ₹6,113 cr for urban infrastructure.
• Tamil Nadu: ₹18,000 cr for roads, with Smart City upgrades in key towns.
• Maharashtra: ₹9,448 cr for district roads + ₹15,138 cr for rural housing.

🚧 Why it matters: Better roads aren’t just about smoother drives. They unlock rural markets, lower logistics costs, and fuel local business growth.

4. Energy Subsidies, Solar Parks, and Power Play

States are racing to meet rising energy demands:

• Karnataka: Spends 7.1% of its budget on energy well above average.
• Gujarat & Maharashtra: Huge agricultural power subsidies (₹17,815 cr).
• UP: Announces 500 MW & 200 MW solar parks.

⚡ Takeaway: Clean energy = startup-ready sector. There’s space for innovations in solar tech, agri-energy tools, and grid solutions.

5. Social Welfare and Women-Centric Schemes

This year sees targeted spending on women and welfare:

• Maharashtra: ₹36,000 cr to Mukhya Mantri Mazhi Ladki Bahin Yojana (monthly income support to women).
• West Bengal: ₹60,000 first instalments to 16 lakh rural homes via Banglar Bari scheme.
• UP: A big boost to job-creating corridors and data centre parks.

🧕🏽 Why this matters: Direct benefit schemes stimulate rural consumption — which keeps MSMEs and local markets alive and thriving.

Sector Spotlight: What’s In It for Entrepreneurs?

🚜 Agriculture & Rural Economy

Despite 40% of Indians depending on farming, most states allocate only 3–7% to agriculture. Still, significant schemes include:

• Maharashtra: ₹6,060 cr under Namo Shetkari Yojana.
• UP: ~₹24,215 cr to agriculture and allied.
• WB: 200 new agri-procurement centres with 50% subsidy on equipment.

✅ Startup angle: Agri-tech, cold storage, processing, and supply chain businesses have fertile ground here.

MSME, Manufacturing, and Startups

While many state budgets don’t highlight startups directly, here’s what supports them:

• UP: ₹9,500 cr towards industrial corridors and data parks.
• Gujarat: Mega plans for a ₹1 trillion economy with focus on MSMEs.
• Karnataka & Maharashtra: Continue supporting local startup ecosystems with funds and incubation.

💡 Tip: Entrepreneurs can tap into state-specific funds — from innovation grants to MSME machinery upgrades.

Central Schemes Fuel the Fire

All state budgets are boosted by central schemes. Here’s how:

These schemes directly benefit state spending — and entrepreneurs who know how to access them.

How StartupFlora Helps You Tap Into These Budgets

Here’s where StartupFlora comes in.

You could go to 29 state websites and 12 ministries to search for schemes. Or you could go to StartupFlora.com.

What we do:

• Match your startup/MSME with the right state + central scheme
• Help prepare paperwork, business plans, and documentation
• Submit applications and track approvals
• Liaise with state departments or incubators on your behalf

Real stories:

• A coir startup in Kerala doubled income using a state tech grant we helped them apply for
• A Pune healthtech got SISFS funding to prototype its app again via StartupFlora support

If your startup is stuck on funding, the opportunity isn’t missing your access is. That’s what we unlock.

Final Word: States Are Betting So Should You

Every rupee in a state budget creates a ripple:

• A road gets built → transport gets cheaper → local goods reach new markets
• A school gets upgraded → youth get skilled → new startups get better hires
• A woman gets monthly support → she buys locally → small businesses grow

In short, these aren’t just budgets — they’re blueprints for India’s next growth wave.

And with platforms like StartupFlora, you don’t have to watch it from the sidelines. You can be part of the action.

FAQs on Indian States Budget

Q1. How can startups benefit from state budgets?
A: Through grants, subsidies, infrastructure, skilling programs, and easier access to loans or industrial land.

Q2. What if I’m not based in a metro city?
A: Most schemes now cover rural and tier-2/3 startups. In fact, many state budgets prioritize rural innovation.

Q3. How do I know which scheme I qualify for?
A: Use StartupFlora’s eligibility check. It filters based on your sector, team size, funding stage, and state.

Q4. Is there any cost to apply via StartupFlora?
A: No upfront cost for guidance. Some services (like proposal building) may carry minimal professional charges — all disclosed transparently.

Q5. I run an MSME, not a startup. Can I still get funding?
A: Absolutely. PMEGP, MUDRA, and state-specific MSME grants are available and regularly updated.

Ready to tap into these ₹ lakh-crore budgets?
Visit StartupFlora.com, run an eligibility check, and get started with your funding application today.

💡 Don’t wait for VC funding. Your first investor might be the Government of India.