The government of India has launched several initiatives to support emerging businesses and foster innovation. These schemes are designed to provide financial support, mentorship, skill development, and access to infrastructure—key elements that help new businesses grow. India’s startup ecosystem is rapidly expanding, driven by creative entrepreneurs and a strong foundation of government backing.
They also aim to simplify compliance, reduce regulatory burdens, and encourage inclusive growth across sectors. With an increasing focus on nurturing homegrown enterprises, these initiatives empower individuals to turn their ideas into sustainable ventures and contribute meaningfully to the nation’s economic transformation and employment generation.
In this blog, we will look at the Top 10 Government Schemes for Startups in India.
How Does the Government Startup India Scheme Work?
- Objective-Based Design: Government startup schemes are created to foster innovation, job creation, and economic growth by supporting entrepreneurs with financial and strategic assistance.
- Eligibility Criteria: Startups must meet specific requirements, such as being registered in India, having a limited turnover, operating within a set time frame from incorporation, and working on innovative solutions.
- Application Process: Entrepreneurs apply online through designated government portals by submitting business plans, registration documents, and other required certifications.
- Evaluation and Selection: Submitted applications are reviewed based on innovation, scalability, potential impact, and viability. Shortlisted startups may undergo interviews or presentations.
- Support Provided: Selected startups receive benefits such as funding support, tax exemptions, mentoring, incubation facilities, and access to government tenders.
- Ongoing Compliance: Startups receiving support must maintain records, submit progress reports, and comply with the terms of the scheme to continue receiving benefits.
List of Top 10 Government Schemes for Startups in India
1. Startup India Initiative
The Startup India Initiative, established in 2016, seeks to develop an advanced system that promotes innovation and entrepreneurship growth. The initiative focuses mainly on three fronts: regulatory simplification and funding support alongside tax exemptions for recognised startups.
Through this scheme startups benefit from labor law self-certification mechanisms along with streamlined public procurement requirements and access to mentorship through the Startup India Hub. The initiative develops job opportunities while fostering sustainable economic growth through its support of fresh business ventures.
Startup India’s IPR facilitation and financial support systems allow Indian entrepreneurs to expand their businesses worldwide and stimulate significant economic development for the nation.
Eligibility:
- DPIIT-recognised startups.
- Must be incorporated as a private limited company, LLP, or partnership firm.
- Turnover should not exceed ₹100 crore in any financial year.
- Must be within 10 years of the date of incorporation.
- Working towards innovation, improvement, or development of products/processes/services
Benefits:
- 3-year income tax exemption.
- Self-certification under labor and environment laws.
- Faster patent examination and IPR support.
- Access to the Startup India Hub for mentorship and networking.
- Easier public procurement norms for government tenders.
2. Fund of Funds for Startups (FFS)
The Fund of Funds for Startups (FFS) was incorporated in 2016, operates through a Rs. 10,000 crore corpus to stimulate venture capital investments in startup businesses.
Through the management of SIDBI this fund provides indirect funding to startup companies by investing in SEBI-registered Alternative Investment Funds which further support aspiring startups. The program fills financial gaps for companies at their initial and expandable phases because they usually cannot access conventional lending sources.
The funding platform for new ventures improves through the induction of risk-oriented capital participation that enables financing support for innovation-focused companies throughout all business domains.
Eligibility:
- DPIIT must recognise startups.
- Must receive funding through SEBI-registered AIFs supported by SIDBI under FFS.
- Should be involved in innovative, scalable, and job-creating business models.
Benefits:
- Indirect funding through AIFs: Improved access to venture capital.
- Risk capital support for early and growth-stage startups.
- Encourages private sector investment in startups.
- No direct repayment burden on startups.
- Promotes a financial ecosystem for entrepreneurship.
3. Startup India Seed Fund Scheme (SISFS)
Launched in April 2021, the Startup India Seed Fund Scheme (SISFS) aims to support early-stage startups with capital for proof of concept, prototype development, product trials, and market entry.
The objective is to reduce the funding gap at the ideation and prototype stage by offering financial assistance through government-recognised incubators. Startups can receive grants up to Rs. 20 lakhs and investments up to Rs. 50 lakhs.
This scheme enables aspiring entrepreneurs to validate their ideas, refine products, and build sustainable business models, thereby strengthening India’s innovation and startup ecosystem.
Eligibility:
- DPIIT-recognised startups incorporated within 2 years of application.
- Innovative, tech-based, scalable product or service with market fit.
- Indian promoters holding at least 51% equity.
- No physical incubation requirement.
Benefits:
- Grants up to ₹20 lakh: Support for proof of concept, prototype development, product trials, market-entry, and commercialisation.
- Industry-agnostic: Open to startups across diverse sectors.
- Nationwide Reach: Disbursed through eligible startup incubators across India.
4. Credit Guarantee Scheme for Startups (CGSS)
The Credit Guarantee Scheme for Startups (CGSS) began operations in 2022 to ensure lending guarantees for startups through banks and financial institutions without requiring physical collateral.
The primary goal of this scheme is to simplify financial access for innovative startups that don’t possess tangible assets or standard credit profiles. The government provides risk mitigation through its Credit Guarantee Scheme for Startups by guaranteeing specific financial limits which makes banks more willing to issue loans to startup companies.
The program supports business startups through effective credit risk management, which leads to the development of new entrepreneurship while expanding financial opportunities for startups.
Eligibility:
- DPIIT-recognized startups.
- Loans sanctioned by Scheduled Commercial Banks, NBFCs, and AIFIs.
- Must comply with eligibility norms set by SIDBI and the Ministry of Commerce & Industry.
Benefits:
- Collateral-free credit guarantees up to ₹10 crore per borrower.
- Covers working capital, term loans, and venture debt.
- Encourages lenders to support startups with no physical assets.
- Reduces credit risk for financial institutions.
- Supports capital access for innovation-led businesses.
5. MSME Innovative Scheme
The MSME Innovative Scheme was established under the Ministry of MSME in 2022 with three operational sub-components: Incubation, Design and IPR (Intellectual Property Rights).
Startups and MSMEs require support to create an innovative environment alongside design capability development combined with intellectual property understanding. The initiative supports fundamental research and commercial development with prototype funding alongside expert guidance and patent-associated payments.
The scheme gives startups essential tools to enhance their product excellence, market advantages and international growth opportunities through enriching India’s MSME innovation system.
Eligibility:
- Registered MSMEs, including startups.
- Should be working on innovative ideas or product/process development.
- Must have Udyam registration.
- For design/IPR, prior approvals from designated institutions may be needed.
Benefits:
- Incubation: Funding up to ₹15 lakh for idea-stage and ₹1 crore for commercialisation.
- Design: Assistance up to ₹40 lakh for product design and development.
- IPR: Reimbursement of patent/trademark filing costs (up to ₹5 lakh per patent).
- Capacity building through mentoring and expert guidance.
- Promotes market-ready innovations and competitiveness.
6. Pradhan Mantri Mudra Yojana (PMMY)
The Pradhan Mantri Mudra Yojana (PMMY) started in 2015 to provide microcredits without collateral to small businesses and startups, along with micro-entrepreneurs.
PMMY aims to support entrepreneurship through three loan categories known as Shishu (up to Rs. 50,000), Kishor (Rs. 50,001 to 5 lakhs), and Tarun (Rs. 5 to 10 lakhs), which target financial inclusion by providing loans up to Rs. 10 lakhs.
PMMY obtains loan access through banks alongside MFIs and NBFCs to serve individuals who need business funding but do not qualify for formal financing. Through this program people gain self-employment while creating jobs and establishing businesses which support local economic development particularly in rural and semi-urban regions.
Eligibility:
- Non-corporate small businesses and startups in manufacturing, trading, or service sectors.
- Indian citizens aged 18–65 years.
- No previous loan defaults.
- Valid business plan and documents.
Benefits:
- Shishu (Up to ₹50,000), Kishor (₹50,001–₹5 lakh), Tarun (₹5–₹10 lakh) loans.
- Collateral-free loans with flexible repayment tenure.
- Interest subsidy and nominal processing fees.
- Available via banks, NBFCs, and MFIs across India.
- Promotes grassroots entrepreneurship and self-employment.
7. Atal Innovation Mission (AIM)
The Atal Innovation Mission (AIM) was launched by NITI Aayog in 2016 with its main goal to cultivate innovation combined with entrepreneurial practices in every corner of India.
AIM aims to strengthen creative problem-solving initiatives while providing funding to incubators and connecting students to STEM education experiences through Atal Tinkering Labs. AIM finances both Atal Incubation Centers (AICs) as well as supporting innovative startup projects dedicated to solving health issues, educational problems, agricultural challenges and artificial intelligence solutions.
AIM’s mission to promote early-stage concepts and foster ecosystem collaborations enables India to build an innovation-based economy while training young people to establish entrepreneurial futures.
Eligibility:
- Schools, higher education institutions, research bodies, and startups.
- For Atal Incubation Centers: Proven experience in entrepreneurship development.
- For startups: Must be hosted or supported by AIM-affiliated incubators.
Benefits:
- Funding for Atal Tinkering Labs in schools to encourage innovation.
- Grants up to ₹10 crore for setting up Atal Incubation Centers.
- Mentorship and partnership support via Atal Community Innovation Centers.
- Facilitates access to labs, equipment, and ecosystem stakeholders.
- Promotes innovation and STEM learning among youth.
8. Support for International Patent Protection in Electronics & IT (SIP-EIT)
The SIP-EIT program launched by the Ministry of Electronics and Information Technology (MeitY) offers support for Indian startups and MSMEs in electronics and IT by funding their international patent registration process.
The program strives to enhance environmental IP awareness and global market position through reimbursement of fees linked to international patent searches and attorney representation along with worldwide filing expenses.
Through this program Indian technological startups can secure international protection for their innovations while establishing intellectual property rights worldwide. The resulting credibility combined with improved market valuation enhances investor confidence which benefits Indian startups.
Eligibility:
- Startups, MSMEs, and recognized institutions in the electronics/IT sector.
- Must have filed or intend to file an international patent.
- Indian-origin inventions only.
Benefits:
- Reimbursement up to ₹15 lakh or 50% of the total patent cost.
- Covers patent search, attorney fees, filing, and processing charges.
- Enhances IP protection and commercialisation abroad.
- Promotes global competitiveness of Indian tech startups.
- Encourages patent culture and innovation.
9. TIDE 2.0 (Technology Incubation and Development of Entrepreneurs)
Launched in 2019 by MeitY, TIDE 2.0 supports tech-based startups working in emerging technologies such as AI, IoT, blockchain, and cybersecurity.
The objective is to strengthen the startup ecosystem in ICT-enabled services and products by offering financial, infrastructural, and mentorship support through incubation centers. The scheme categorises startups based on development stages and funds them accordingly-grant support is extended for ideation, product development, and commercialisation.
TIDE 2.0 encourages deep-tech innovation, boosts digital entrepreneurship, and supports India’s digital transformation goals.
Eligibility:
- Startups in emerging technologies like AI, IoT, blockchain, robotics, and cybersecurity.
- Hosted by MeitY-approved TIDE incubators.
- Must show technological feasibility and commercial viability.
Benefits:
- Grants: ₹4 lakh (Idea Stage), ₹7 lakh (MVP Stage), ₹15 lakh (Scale-up).
- Access to mentoring, co-working space, testing labs, and infrastructure.
- Incubation and networking support.
- Promotes productization of tech innovations.
- Focused on ICT-based entrepreneurship and digital solutions.
10. National Initiative for Developing and Harnessing Innovations (NIDHI)
Launched in 2016 by the Department of Science and Technology (DST), NIDHI aims to nurture knowledge-based and technology-driven startups.
The objective is to provide early-stage support through seed funding, prototyping grants, mentoring, and access to incubation facilities. It includes subprograms like PRAYAS, EIR, and NIDHI Seed Support System. NIDHI helps startups validate ideas, refine technologies, and transition from lab to market.
The scheme fosters an innovation-driven culture by bridging the gap between research and commercialisation, thereby promoting sustainable entrepreneurship in India’s scientific and academic community.
Eligibility:
- Technology-driven startups recognised by DPIIT.
- Hosted at DST-supported incubators.
- Must demonstrate societal relevance, scalability, and tech feasibility.
Benefits:
- PRAYAS: Grant up to ₹10 lakh for prototype development.
- Entrepreneur-in-Residence: Monthly fellowship of ₹30,000–₹35,000.
- Seed Support: Up to ₹1 crore for early-stage investment.
- Access to mentorship, labs, and tech experts.
- Converts research into viable commercial products.
Ending Thoughts
India’s government-backed startup schemes play a vital role in nurturing innovation, entrepreneurship, and economic growth. Initiatives like Startup India, Fund of Funds, and the Seed Fund Scheme provide crucial financial support, regulatory relief, and a strong incubation framework for budding entrepreneurs. By promoting ease of doing business, offering tax exemptions, and enabling access to global intellectual property rights, these schemes help startups overcome early-stage challenges and scale efficiently.
Their inclusive, sector-agnostic approach fosters innovation across diverse domains such as technology, manufacturing, agriculture, and services. As a result, India is steadily emerging as a global startup hub. With continued policy support and ecosystem collaboration, these schemes are laying the foundation for a self-reliant and innovation-driven economy.
FAQs
Who can apply for these startup schemes in India?
Most schemes are open to Indian startups that meet criteria such as company registration, innovation, turnover limits, and incorporation period.
Are there any tax benefits under these schemes?
Yes, several government schemes offer tax exemptions on income, capital gains, and investments for eligible startups.
Do startups from all sectors qualify for government support?
Generally, yes, but priority may be given to sectors like technology, healthcare, agriculture, and sustainability.
How can I apply for startup schemes in India?
Startups can apply through official portals like Startup India or directly through scheme-specific websites by submitting the required documentation.
