Turn Your Startup Dream into Reality with Government Support!
India has witnessed a startup revolution in the past decade — and guess what? The Government of India is backing this wave with full force. Whether you’re launching a tech platform, a food brand, a clothing line, or a D2C product, there are multiple schemes tailored just for you.
Let’s explore the most impactful government schemes that every startup founder should know in 2025!
1. Startup India Initiative
Launched: January 2016
Nodal Agency: DPIIT (Department for Promotion of Industry and Internal Trade)
Objective:
To nurture innovation, drive sustainable economic growth, and generate large-scale employment opportunities.
Key Features:
- Startup Recognition: DPIIT-recognised startups get access to a host of benefits.
- Tax Exemption: 100% tax exemption on profits for 3 consecutive years within the first 10 years.
- Self-Certification: Startups can self-certify compliance with 9 labor and 3 environmental laws.
- IPR Benefits: Fast-track patent examination at lower fees.
- Government Tenders: Access to government tenders with no prior experience/turnover needed.
- Networking Opportunities: Startup India events, boot camps, and international exposure.
2. MUDRA Loan Scheme (Pradhan Mantri MUDRA Yojana)
Launched: April 2015
Nodal Agency: MUDRA (Micro Units Development and Refinance Agency)
Objective:
To provide micro-finance to small and budding entrepreneurs with minimal formalities.
Loan Categories:
- Shishu: Up to ₹50,000 (ideal for early-stage startups)
- Kishor: ₹50,001 to ₹5,00,000 (for growth stage)
- Tarun: ₹5,00,001 to ₹10,00,000 (for expansion stage)
Features:
- No collateral required
- Flexible repayment tenure
- Nominal processing charges
Ideal for: Small-scale food vendors, artisans, retailers, service providers, and micro-manufacturers.
3. Fund of Funds for Startups (FFS)
Launched: 2016
Managed by: SIDBI (Small Industries Development Bank of India)
Corpus: ₹10,000 Crores
Objective:
To provide funding support to startups through SEBI-registered Alternative Investment Funds (AIFS).
How It Works:
- SIDBI doesn’t directly fund startups.
- Instead, it funds Venture Capital (VC) firms, which in turn invest in startups.
- AIFS must invest twice the amount it receives from FFS in startups.
Ideal for: Startups ready for Series A or B funding, looking for equity capital.
4. Credit Guarantee Scheme for Startups (CGSS)
Launched: 2022
Implemented by: SIDBI + DPIIT
Objective:
To provide startups with collateral-free loans by offering credit guarantees to lenders.
Key Benefits:
- Loan limit: Up to ₹10 crores
- Coverage: Up to 75% of credit extended
- Applicable to term loans, working capital, and venture debt
Ideal for: Startups seeking larger loan amounts but lack property or assets to pledge.
5. Atal Innovation Mission (AIM)
Implemented by: NITI Aayog
Year: 2016
Objective: Promote innovation and entrepreneurship through mentorship, labs, and funding.
Core Programs:
- Atal Incubation Centres (AICS): Financial support up to ₹10 crore for setting up world-class incubators.
- Atal Tinkering Labs (ATLS): Set up in schools to promote STEM skills.
- Atal New India Challenges: Focused R&D challenges in areas like energy, health, and agriculture.
Benefits:
- Grants for R&D and prototyping.
- Access to mentors, labs, and an investor network.
- Innovation-driven startup encouragement.
6. Startup Research Grant by BIRAC
Administered by: Biotechnology Industry Research Assistance Council
Under: DBT, Ministry of Science & Technology
For: Biotech and life sciences startups
Key Features:
- Biotech Ignition Grant (BIG): Funding up to ₹50 lakhs for proof-of-concept and idea validation.
- Support for product development in healthcare, diagnostics, agriculture, and food tech.
- Access to BIRAC’s network of incubators, mentors, and tech support.
7. SIDBI Make in India Soft Loan Fund for MSMES (SMILE)
Launched by: SIDBI
Aim: To support startups in the manufacturing and services sectors with soft loans.
Key Features:
- Loan amount based on project need (usually up to ₹2 crore).
- Interest: 8.5% to 10% approx.
- Moratorium up to 36 months.
- Loan tenure: up to 10 years.
Use Cases:
- Setting up new units
- Expansion and modernisation
- Machinery purchase or infrastructure upgrade
8. PM-FME Scheme (Pradhan Mantri Formalisation of Micro food processing Enterprises)
Launched by: Ministry of Food Processing Industries
Year: 2020
Aim: To formalise and upgrade India’s unorganised food processing sector.
Features:
- 35% capital subsidy (max ₹10 lakh) for micro food processing units.
- Training in food safety, quality, and business development.
- Support for branding, packaging, and marketing.
- Focus on the One District One Product (ODOP) concept.
Best For:
- Rural women entrepreneurs, SHGS, and food startups (ghee, makhana, pickles, etc.)
9. Digital MSME Scheme
Launched by: Ministry of MSME
Aim: Promote IT adoption among MSMES to make them digitally empowered.
Key Benefits:
- Subsidy on the purchase/subscription of IT software.
- Cloud computing solutions for CRM, ERP, Accounting, HRMS.
- Guidance on digital tools to scale business.
Great For:
- Startups running e-commerce, online services, or using Saas-based tools.
10. Stand-Up India Scheme
Launched by: Department of Financial Services, Ministry of Finance
Aim: Promote entrepreneurship among women and SC/ST communities.
Key Benefits:
- Loans from ₹10 lakh to ₹1 crore.
- For greenfield (first-time) projects in manufacturing, services, or trading.
- 85% project cost is covered under the loan.
- 7-year tenure with a moratorium of 18 months.
Eligibility:
- Must be SC/ST or a woman above 18 years.
- No default history with any bank.
- The project must be a new enterprise (not an existing business).
Final Thoughts:
Government schemes can be the first investor in your journey — don’t miss out on the free tools, funding, and support available. These schemes are not just about money, they’re about building India’s Startup Culture.
Want a customised list of schemes based on your business type? Drop a comment below or DM me for a free consultation