India’s government supports startups through various schemes:
Startup India Initiative: Tax holiday for 3 years, fast-track patent filing, access to funds, self-certification under labor laws, and simplified company registration.
MUDRA Loan Scheme (PMMY): Offers collateral-free loans up to ₹10 lakh for micro and small businesses.
Credit Guarantee Fund Trust (CGTMSE): Provides loans without collateral up to ₹2 crore for startups and MSMEs.
Stand-Up India Scheme: Focuses on facilitating loans for SC/ST and women entrepreneurs, encouraging inclusive entrepreneurship.
Startup India Fund of Funds (FFS): Capital access for early-stage ventures through alternate investment funds.
These schemes help startups overcome barriers related to funding, regulatory compliance, and market access, empowering India’s entrepreneurial landscape.
Startups are now the backbone of India’s new economy—fueling employment, innovation, and sustainable development in both metros and rural areas
Here is a list of the major government schemes in India designed to support startups, along with their basic eligibility criteria:
Startup India Initiative
Eligibility: Entities must be registered as a private limited company, partnership firm, or LLP in India, not older than 10 years, and have an annual turnover not exceeding ₹100 crore.
Benefits: Tax holiday for three years, funding through the Fund of Funds, self-certification for compliance, priority under various government procurement policies.
Startup India Seed Fund Scheme (SISFS)
Eligibility: Startups must be recognized by DPIIT, incorporated not more than 2 years before the application, and must not have previously received more than ₹10 lakh in monetary support for the same concept.
Benefits: Grants up to ₹20 lakh for prototype development and up to ₹50 lakh via convertible debentures for product commercialization.
Stand-Up India
Eligibility: Must be at least one SC/ST and/or woman entrepreneur per branch for setting up a greenfield enterprise.
Benefits: Loans between ₹10 lakh to ₹1 crore; available for manufacturing, services, or trading sectors.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Eligibility: Micro and small enterprises including startups; must be engaged in manufacturing or service activities, including retail trade.
Benefits: Collateral-free credit up to ₹2 crore for new and existing units.
MUDRA (Pradhan Mantri Mudra Yojana)
Eligibility: Microenterprises in manufacturing, processing, trading, or service sector. No specific registration needed; open to small businesses and startups in specified sectors.
Benefits: Collateral-free loans in three categories: Shishu (up to ₹50,000), Kishor (up to ₹5 lakh), Tarun (up to ₹10 lakh).
Atal Innovation Mission (AIM)
Eligibility: Early-stage startups, educational and research institutions, and innovators.
Benefits: Grants for prototyping, market research, incubation centers, and Atal Tinkering Labs.
SAMRIDH (Startup Accelerators of MeitY for Product Innovation, Development & Growth)
Eligibility: Startups in the software product sector; must be part of selected acceleration programs via MeitY Startup Hub.
Benefits: Up to ₹40 lakh financial support, mentorship, accelerator linkage.
Credit Guarantee Scheme for Startups (CGSS)
Eligibility: DPIIT-recognized startups, registered as private limited companies, turnover up to ₹50 crore.
Benefits: Loan guarantee up to ₹5 crore with 80% government-backed guarantee through participating banks.
MeitY Startup Hub (MSH)
Eligibility: Early-stage and deep-tech startups in IT, AI, cybersecurity, and related fields.
Benefits: Financial support, accelerator programs, access to R&D labs, industry mentorship.
Software Technology Parks of India (STPI)
Eligibility: IT and ITES startups focusing on export-oriented development.
Benefits: Infrastructure, tax benefits, export support, and incubation for tech startups.
Eligibility and benefits may change over time, so consulting the official scheme portals or myScheme (myscheme.gov.in) is recommended for the latest requirements.
