NEW DELHI – In a decisive move to fortify India’s standing as a global innovation hub, the Government of India has unveiled a comprehensive Digital Infrastructure Grant for startups today, January 5, 2026. The initiative marks a significant shift in policy, moving beyond regulatory easing to providing direct fiscal support for the technological backbone of early-stage enterprises.
Bridging the Technical Divide
For years, the prohibitive cost of high-end digital infrastructure—ranging from secure cloud storage and high-speed server access to advanced cybersecurity protocols—has served as a barrier to entry for budding entrepreneurs. While capital is often available for operations, the capital expenditure (Capex) required for digital foundations remains a hurdle, particularly for bootstrapped ventures.
This new grant aims to dismantle that barrier. By subsidizing the costs associated with critical digital assets, the Centre intends to level the playing field. This ensures that a brilliant idea originating in a Tier-2 city like Indore or Coimbatore has the same technological stability as a venture launched in Bengaluru or Gurugram.
Key Highlights of the Scheme
According to details highlighted by Lokmaha News, the grant is structured to cover up to 60% of digital infrastructure costs for eligible startups during their first three years of operation. The scope of the grant includes:
- Cloud Computing Credits: Subsidies for hosting services to manage data loads efficiently.
- Cybersecurity Compliance: Funding to implement high-grade encryption and security audits, ensuring data protection remains paramount.
- AI and Compute Power: Special allocations for deep-tech startups requiring heavy processing power for Artificial Intelligence and Machine Learning models.
A Human-Centric Approach to Innovation
Speaking on the condition of anonymity, a senior official from the Ministry of Electronics and Information Technology emphasized that this policy is “human-centric” at its core. The objective is to free the entrepreneur from the anxiety of technical overheads, allowing them to focus on problem-solving and employment generation.
Industry experts have welcomed the move, noting that it aligns with the maturing phase of the Indian startup ecosystem. As reported by Lokmaha News, the focus has shifted from valuation to value creation, and robust infrastructure is the bedrock of sustainable value.
Eligibility and the Road Ahead
The government has clarified that the grant will be accessible to startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). Special preference will be given to ventures focusing on social impact sectors such as Agritech, Healthtech, and Edutech, which often operate on thinner margins but deliver high social value.
Applications for the Digital Infrastructure Grant are expected to open later this month via a centralized portal. This development serves as a promising start to 2026, signaling that the administration is listening to the nuanced needs of the startup community and is willing to invest in the digital soil wherein future unicorns will grow.
