Top Indian Government Startup Schemes in 2025 - Complete Guide
- Team Ellenox
- Aug 19
- 5 min read
Are you an entrepreneur finding it difficult to secure funding and resources to scale your startup?
Does lack of financial support and mentorship slow down your growth journey?
Do you struggle with high operational costs and limited market access that stop your business from reaching its potential?
If yes, it’s time to leverage Indian government startup schemes.
These schemes are designed to empower startups with funding, collateral-free loans, tax relief, incubation support, and faster compliance.
They not only reduce business risks but also boost growth opportunities, helping you build a stronger foundation for success.
But with several schemes available across different sectors, many entrepreneurs are still unaware of the powerful support they can access startup funding in India.
Quick Comparison of Major Indian Government Startup Schemes (2025)
Scheme | Key Benefits & Funding | Who Can Apply |
Startup India Initiative | 3-year tax exemption, patent filing rebate (80%), easier compliance, GeM access | Registered startups (<10 yrs, turnover <₹100 cr, innovative) |
Startup India Seed Fund (SISFS) | Grants up to ₹20 lakh + investment up to ₹50 lakh via incubators | DPIIT-recognized, <2 yrs old, early-stage |
Credit Guarantee Scheme for Startups (CGSS) | Collateral-free loans up to ₹20 crore, 85%–75% guarantee coverage | DPIIT-recognized startups via banks/NBFCs/AIFs |
MUDRA Loans (PMMY) | Shishu (₹50k), Kishore (₹5L), Tarun (₹10L), collateral-free | Micro and small enterprises |
Stand-Up India | Loans ₹10 lakh–₹1 crore, 7-year repayment | Women or SC/ST entrepreneurs |
Atal Innovation Mission (AIM) | Atal Labs, incubation, mentorship, R&D support | Startups, schools, institutions |
CGTMSE | Collateral-free credit up to ₹2 crore | MSMEs and eligible startups |
SAMRIDH Scheme | Up to ₹40 lakh + accelerator access | Early-stage deep-tech startups |
SIP-EIT | Patent protection support up to ₹15 lakh | Electronics/IT startups |
MeitY Startup Hub (MSH) | Funding, R&D access, incubation | IT/AI/Fintech/Cybersecurity startups |
GeM for Startups | Direct procurement from govt, no prior turnover needed | DPIIT-recognized startups |
Aatmanirbhar Bharat App Challenge | Rewards + scaling support for app developers | Indian tech startups/app developers |
1. Startup India Initiative
Launched: 2016
Objective: Build a strong startup ecosystem through tax breaks, compliance relaxation, and market access.
Key Benefits:
3-year income tax exemption within the first 10 years
Self-certification under 6 Labor Laws and 3 Environmental Laws
80% rebate on patent filing fees and fast-track examination
Simplified incorporation via MCA’s SPICe+
Direct access to the Government e-Marketplace (GeM)
Eligibility for Startup India Seed Fund and Fund of Funds
Eligibility:
Private Limited, LLP, or Partnership firm
Turnover less than ₹100 crore
Business less than 10 years old
Innovative and scalable business model
How to Apply: Register and obtain DPIIT recognition on the Startup India portal.
Website: https://www.startupindia.gov.in
2. Startup India Seed Fund Scheme (SISFS)
Launched: 2021Budget: ₹945 crore (2021–2025)
Objective: Provide seed funding for proof-of-concept, prototype, and market entry.
Key Benefits:
Up to ₹20 lakh as a grant for prototype development and trials
Up to ₹50 lakh via convertible debentures or debt-linked instruments for scaling
Mentorship and support through 300+ accredited incubators
Eligibility:
DPIIT-recognized startup
Incorporated within the last 2 years
Not received institutional funding
Innovative and viable business model
How to Apply: Apply online via Startup India portal; funds are disbursed through incubators.
Website: https://seedfund.startupindia.gov.in
3. Credit Guarantee Scheme for Startups (CGSS)
Launched: 2022
Objective: Enable collateral-free loans to DPIIT-recognized startups.
Key Benefits:
Maximum guarantee cover up to ₹20 crore per borrower
Coverage: 85% for loans up to ₹10 crore, 75% for loans above ₹10 crore
Supports term loans, working capital, venture debt, and other eligible credit instruments
Risk shared between lender and government (via NCGTC)
Eligibility:
Must be DPIIT-recognized
Loans sanctioned through Member Institutions (banks, NBFCs with BBB+ rating, SEBI-registered AIFs)
How to Apply: Apply for credit through eligible banks or NBFCs; lender applies to NCGTC for guarantee cover.
Website: https://www.startupindia.gov.in
4. Pradhan Mantri MUDRA Yojana (PMMY)
Launched: 2015 Target: Micro and small entrepreneurs
Loan Categories:
Shishu: Up to ₹50,000
Kishore: ₹50,000 to ₹5 lakh
Tarun: ₹5 lakh to ₹10 lakh
Benefits: Collateral-free loans for self-employment and micro-businesses.
Eligibility: Non-farm micro/small enterprises.
How to Apply: Apply at banks, NBFCs, or via the MUDRA portal.
Website: https://www.mudra.org.in
Build Your Startup the Right Way
5. Stand-Up India Scheme
Launched: 2016
Objective: Promote entrepreneurship among SC/ST communities and women.
Key Benefits:
Loans from ₹10 lakh to ₹1 crore
Repayment tenure up to 7 years
Collateral security as per bank norms, but backed by Credit Guarante
Eligibility:
Women or SC/ST entrepreneurs above 18 years
Greenfield business in manufacturing, services, trading, or allied activities
How to Apply: Apply through Stand-Up Mitra portal or banks directly.
Website: https://www.standupmitra.in
6. Atal Innovation Mission (AIM)
Launched: 2016
Objective: Foster a culture of innovation through tinkering labs and incubation centres.
Key Benefits:
Atal Tinkering Labs for schools
Atal Incubation Centres for entrepreneurs
Mentorship, grants, and R&D partnerships
Eligibility: Startups, educational institutions, and innovators.
How to Apply: Calls for applications are announced on AIM portal.
Website: https://aim.gov.in
7. Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE)
Objective: Provide collateral-free loans to MSMEs and eligible startups.
Key Benefits:
Credit guarantee cover up to ₹2 crore
Available for both new and existing enterprises
Eligibility: Micro and small businesses including startups.
How to Apply: Apply via participating banks/NBFCs.
Website: https://www.cgtmse.in
8. SAMRIDH Scheme
Launched: 2021
Objective: Support early-stage startups in deep-tech and digital innovation.
Key Benefits:
Up to ₹40 lakh in financial support
Access to accelerators and mentoring
Eligibility: Startups in digital products and deep-tech innovation.
How to Apply: Apply via MeitY Startup Hub portal.
Website: https://portal.meity.gov.in/
9. SIP-EIT (Support for International Patent Protection in Electronics and IT)
Launched: 2014
Objective: Help Indian innovators secure global patents.
Key Benefits:
Reimbursement up to ₹15 lakh per invention
Covers attorney fees, patent office fees, and examination charges
Eligibility: Indian startups, MSMEs, and tech entrepreneurs in electronics/IT.
How to Apply: Apply online via MeitY portal.
Website: https://portal.meity.gov.in/
10. MeitY Startup Hub (MSH)
Launched: 2019
Objective: Promote IT, AI, cybersecurity, fintech, and deep-tech startups.
Key Benefits:
Access to R&D labs
Funding and incubation support
Accelerator and mentorship programs
Eligibility: Startups in IT and technology domains.
How to Apply: Apply via MSH portal.
Website: https://portal.meity.gov.in/
11. GeM for Startups
Launched: 2016
Objective: Enable startups to sell directly to government departments.
Key Benefits:
Easy onboarding for startups
No prior turnover or experience needed
Direct participation in government tenders
Eligibility: DPIIT-recognized startups can register as sellers.
How to Apply: Register as a seller on the GeM portal.
Website: https://gem.gov.in
12. Aatmanirbhar Bharat App Innovation Challenge
Launched: 2020
Objective: Encourage Indian app development in AI, gaming, e-learning, fintech, and productivity tools.
Key Benefits:
Financial rewards for winners
Mentorship and scaling support
Eligibility: Indian app developers and startups.
How to Apply: Submit applications when challenges are announced on MyGov portal.
Website: https://www.mygov.in
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