The Delhi government recently released a draft of Delhi’s Startup Policy for public feedback. It aims to establish the city as a “global innovation hub” through a slew of measures, including setting up a Rs 200-crore venture capital fund for investing in startups, reimbursements for working spaces, among other measures.Devansh Mittal talks to Rikant Pittie, Chairman, Confederation of Indian Industry (CII) Delhi State, and Co-founder and CEO of EaseMyTrip, about the national capital’s startup ecosystem and the proposed policy.What does Delhi’s current startup landscape look like?Delhi has 15,000-plus startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT), out of 1.6 lakh across India. It has also produced 26 unicorns (out of approximately 120 in India).It is India’s third-largest startup hub, after Bengaluru and Mumbai. Globally, India is the third-largest ecosystem, so Delhi is a key contributor to this. Delhi has enormous potential because it has many real-life problems to solve — air pollution, transport, waste management, tourism, housing — which startups are actively tackling.Can we view Delhi’s startup ecosystem separately from Gurgaon and Noida?As CII Delhi Chairman, my focus is on Delhi-based startups and helping them scale up. I am also part of the National Startup Advisory Council, where the work is more at the national and global level. From a Delhi standpoint, we treat it separately — though the NCR as a whole is integrated in terms of talent and capital.But from a general perspective, we don’t see as many startups operating within Delhi compared to Gurgaon or Noida. Why is this so?Story continues below this adThat is partly a perception issue. Delhi already has more than 15,000 registered startups, which is a huge number.The challenge is in scaling up: as startups grow, they need very large office spaces (25,000 sqft and above). Delhi mostly offers smaller floor plates, and rentals are much higher (Rs 150-200/sqft). In contrast, Noida and Gurgaon offer cheaper and larger spaces (Rs 60-70/sq ft), so many startups shift there once they scale up.The government is already working to fix this with land pooling and the Delhi Master Plan, which will create more space and infrastructure for startups.Compared to Bengaluru or Mumbai, what obstacles do Delhi startups face?Story continues below this adThe main challenge is infrastructure and cost. Delhi rentals are very high, and large campuses are limited. Scale-up startups needing 20,000-25,000 sqft often move out because Delhi mostly has smaller options.Funding ecosystems are also more concentrated in Bengaluru and Mumbai, which gives those cities an edge in early and growth-stage capital access. There are also talent pool differences: Bengaluru has a deep pool of technology talent due to IT services, engineering colleges, and R&D centers, while Mumbai has strong financial, media, and creative talent, making it ideal for fintech and consumer startups.Delhi has excellent policy access, a large consumer market, and strong educational institutions, but many founders shift operations to NCR for larger space and cost efficiency.The Delhi Startup Policy addresses some of these issues: including Rs 10 lakh per year reimbursement for infrastructure for three years, Rs 2 lakh per month operational reimbursement for two years, and a Rs 200 crore fund.Which proposals in the policy excite you most?Story continues below this adThe VC (venture capital) fund is exciting, enabling growth within Delhi. Infrastructure reimbursement and easier access to government projects are also positive.What specific licensing requirements or regulations would you like the government to ease?The first change should be faster approvals. Right now, startup recognition takes around 30 days. We recommend bringing this down to 7 days, because startups work at high speed and every week counts.Second, compliance should be simplified through a true single-window system. Founders shouldn’t have to run to multiple departments or wait on paperwork; everything should be accessible online through one portal.Story continues below this adThird, the government can play a big role in helping startups go global. Indian embassies across the world should actively connect Delhi startups to investors, partners, and markets abroad. These steps will ensure startups spend more time building businesses and less time navigating processes.What are your recommendations for the policy?CII has recommended subsidised infrastructure instead of reimbursements. (The current policy proposes 100% reimbursements on lease rentals for occupying co-working spaces for a maximum period of three years.)Instead of just reimbursement, provide space at Rs 5-10 per sqft in government estates (like in Chhattisgarh). This avoids upfront cash flow stress. We have also recommended State GST (SGST) waivers for startups. A 50% SGST reimbursement for two years can help reduce early-stage tax burden.Another CII recommendation is introducing a Startup-as-a-Service (SaaS) procurement platform, where startups can solve public sector challenges and earn recurring contracts.Story continues below this adOther suggestions include challenge-driven grants, under which startups can provide solutions for problems such as air quality, waste management and urban mobility; and a quarterly CM showcase in which there is a direct platform for startups to pitch to the CM and government departments.Addressing the mental health of startup founders also needs institutional support.Improving Delhi’s tourism sector, which has currently just become a transit hub for tourists, is also another recommendation.Creating better infrastructure for entertainment (concerts, etc.), experiential tourism (like Dubai’s Topgolf), and better connectivity to pilgrimage and heritage sites could be undertaken. Improving safety, security, cleanliness, and hygiene for tourists should also be done.