Vijayawada leads in startup funding under MeitY's Next Generation Incubation Scheme
The NGIS scheme, rolled out by the Ministry of Electronics and Information Technology, has deployed Rs 67.84 crore across 686 startups in 12 Tier II and III cities.
The Next Generation Incubation Scheme has utilised 71% of the funds allocated under it to support 686 technology startups—2.3X the number of companies it had initially planned, said Jitin Prasada, Minister of State for Electronics and Information Technology, responding to a question in the Parliament on Wednesday.
The questions were posed by Daggumalla Prasada Rao and B K Parthasarathi, Members of Parliament (MPs) in the Lok Sabha, representing constituencies in Andhra Pradesh for the Telugu Desam Party (TDP).
In 2020, MeitY launched NGIS to help 300 tech firms in Tier II and III cities over three years. Implemented by the Software Technology Parks of India (STPI), the scheme was allotted a total budget outlay of Rs 95.03 crore.
Under it, STPIs will look to provide mentoring, stipends, seed funding, networking opportunities, and incubation infrastructure to companies.
Vijayawada tops the list, with 133 startups funded under the NGIS. Bhubaneswar ranks second on the list, with 112 startups funded under NGIS, while Jaipur ranks third.
The data reiterates policy provisions taken by Andhra Pradesh to help startups set up shop in the state. For instance, last year, the state government launched Andhra Pradesh Innovation and Startup Policy (4.0) 2024-2029, which aims to generate 1 lakh jobs within the startup ecosystem and support 20,000 new startups over five years.
While most of the 12 cities targeted under the scheme have seen robust startup funding, a few continue to lag. Agartala, Prayagraj, and Bhilai were among the weakest performers, with comparatively fewer companies securing funding through the scheme.
The response comes at a time when conversations around decentralising innovation and startup hubs from Tier I cities and tapping into the talent pool in Tier II and III cities are gaining momentum.
Edited by Suman Singh