Why India’s College Incubators Have Little to Show for a Decade of Government Push

The government’s push on entrepreneurship through the Atal Innovation Mission promised to transform Indian colleges into innovation hubs. A decade on, that ambition remains largely unrealized.

Since 2016, the Centre has established Atal Incubation Centres (AICs) in 60 institutions across the country under the initiative, spearheaded by think tank Niti Aayog. Of these, 38 have incubated 3,067 startups. While eight don’t list a specific number, Mint calculations show they’ve helped incubate more than 3,500 startups. Five don’t list how many startups have been part of their portfolio, and nine don’t have functional websites.

In total, 46 of these incubators have produced 6,567 companies—just 2.8% of the country’s 226,561 startups recognized by the Department for Promotion of Industry and Internal Trade of India (DPIIT).

Telangana-based T-Hub stands out for its portfolio, which includes the spacetech major Skyroot Aerospace, the short-form entertainment platform PocketFM, and the headless CMS platform Contentstack. The rest have produced little of note in consumer markets or business-to-business venture capital circles. However, it existed before it was accredited as an AIC.

Too Read | The secret to startups cracking Bharat as a market—trust and tech

The IITs, in comparison, have delivered stronger outcomes. Over the past 12 years, IIT Madras has incubated 457 startups, including publicly listed Ather Energy, and Agnikul Cosmos.

Taking cue from IIT Madras, several colleges are deepening their footprints across India’s burgeoning startup ecosystem, upgrading their incubation programmes to support ventures scale and raise funding. The list includes coveted names like IIT Bombay, IIM Bangalore, IIM Ahmedabad and IIIT Hyderabad and more.

In May, when Ather Energy listed on the public markets there was an uncommon beneficiary in the form of IIT Madras. The institute’s incubation cell, which had backed the electric scooter maker way back in 2013 with an investment of Rs 29 lakh, received a windfall with its stake in the once campus startup rising more than a hundredfold to a valuation of Rs 50 crore. The premier college went on to sell a portion of its holding, liquidating 31,000 shares for Rs 1 crore to emerge as a role model for other campus incubation cells that are now eager to replicate IIT Madras’s track record. The institute has incubated 477 startups so far, of which 103 have received follow-on funding from angel and venture funds.

“While India’s academic institutions have long been home to high-quality research, much of it historically lacked a path to commercialisation. This changed with IIT Madras incubation cell, and then other institutes followed suit,” said Manu Iyer, a managing partner at early-stage fund Bluehill VC, which has backed student-led startups like EV maker Pibeam Electric and Planys Technologies.

Among the colleges deepening their footprints across India’s burgeoning startup ecosystem are IIM Bangalore, IIM Ahmedabad and IIIT Hyderabad as they increasingly support student startups to raise venture funding and scale operations. IIM Bangalore has a massive cohort of incubated ventures, with “3,178 startups emerging from the institution,” chief executive of its incubation centre, NS Raghavan Centre for Entrepreneurial Learning (NSRCEL) Anand Sri Ganesh told ET.

Government Push: Programs like Startup India, Atal Innovation Mission (AIM), and support from state startup policies have encouraged educational institutes to start incubators. Funding Support: Access to grants and financial aid, such as Rs 10 lakh to Rs 1 crore for setting up incubators, has made it easier for colleges to participate.

Focus on Jobs: With rising youth unemployment, universities are under pressure to prepare students not just for jobs—but for building their own ventures. CSR and Private Involvement: Many corporate firms are investing in campus-based incubation through Corporate Social Responsibility (CSR) projects. UP, Gujarat, and Maharashtra Leading the Way State governments are playing a big role. Uttar Pradesh has recognized over 100 incubators under its StartinUP policy. Gujarat has provided support through the Student Startup and Innovation Policy (SSIP), and Maharashtra is offering grants to educational incubators. The IIMT Ladder Business Foundation in Greater Noida, supported by the Department of IT & Electronics, UP, is one such example. It has a 27,654 sq. Ft. Incubation space and has already mentored over 30 startups.

From Engineering to Agriculture—Diverse Startup Focus These incubators are not only supporting tech ventures.

About Atal Incubation Centre To create an ever-evolving ecosystem of start-ups and entrepreneurs, AIM has been establishing world class incubators called Atal Incubation Centres (AICs) at universities, institutions and corporates among others.