Government Schemes For Startups in India: The current decade would likely go down in history as the decade of entrepreneurship in India. The country is amid a startup boom, and things seem exceedingly favourable for entrepreneurs. As per records, the scale and magnitude of startups in India are the highest they’ve ever been, making the country one of the fastest-growing startup ecosystems in the world.
The Indian government’s constant backing of startups by providing them with incentives has aided this growth. Over the last few years, they’ve rolled out various schemes dedicated to supporting startups. Furthermore, gain some insights on the government policies for startups in India and about govt. support to new enterprises. In this article, we’ll discuss the top govt schemes for entrepreneurs and their benefits.
Top 21 Government Schemes for Startups in India
The Government of India and the Ministry of Micro, Small, and Medium Enterprises have launched more than 21 schemes to empower startups and MSMEs in India. In this article, we have listed out 21 govt. schemes to promote entrepreneurship in India that are specially for startups or entrepreneurs who are looking to get help from these schemes.
1. CHUNAUTI Challenge
Chunauti is a government initiative scheme that stands for Challenge Hunt Under NGIS for Advanced Uninhibited Technology Intervention. It was a pandemic-influenced scheme that was launched in the year August 2020. This online challenge was introduced with the aim of encouraging startups to come up with solutions related to pandemic-related problems. This NextGen Startup Challenge Contest under the Next Generation Incubation Scheme (NGIS) is to find startups that are working towards solutions or software products to help solve futuristic, emerging technology, or societal problems.
Indian startups that are working in domains related to software product development and startups registered with DPIIT under the Startup India Program are eligible as well. The Chunauti program is conducted on time-to-time basis. The last date for the CHUNAUTI 5.0 Challenge application process was closed on the 31st of May, 2023.
|CHUNAUTI Challenge||Click Here|
2. SAMRIDH Scheme
Startup Accelerator of MeitY for Product Innovation, Development and Growth (SAMRIDH) Scheme was introduced by the Minister of Electronics Information and Technology (MeitY) in August 2021. One of the main objectives of this scheme is to provide funding support and fiscal incentives to startups. The idea behind this initiative is to lend support to startups that have proof of concept for their products. The amount provided by the government to the entrepreneurs is INR 40 Lakh. Under this scheme, the government will provide funding to the accelerators after evaluating the startup and its growth.
To be eligible to start a startup, the entrepreneur must be Indian. It is critical that the accelerator has supported at least 50 startups to be eligible and has done the incubation business only in the last 3 years.
|SAMRIDH Scheme||Click Here|
3. Digital India BHASHINI
Digital India BHASHINI is an initiative that was introduced by the Prime Minister, Narendra Modi, during the Digital India Week in 2022. This initiative allows Indian citizens to easily access the Internet and digital services in their native language. This form of digital inclusion will encourage the participation of startups. Digital India BHASHINI (Bhasha Interface of India) aims to make AI and NLP resources available to MSMEs, Startups, and Individual Innovators in the public domain.
|Digital India BHASHINI||Click Here|
4. MSME Market Development Assistance (MDA)
The MSME Market Development Assistance Scheme (MDA) is a sub-component of the MSME International Cooperation Scheme (IC), and was implemented by the Ministry of Micro, Small, and Medium Enterprises. The scheme aims to help MSMEs grow internationally by providing them financial support for participating in international trade fairs, exhibitions, organising summits in India, and more. So, how to get funding for startup from Government? The scheme offers up to 75% of the funding to support the participants’ to-and-fro air fares. MSMEs that are registered and recognized by the Government of India are eligible to apply for this scheme.
5. NIDHI Scheme (National Initiative for Development and Harnessing Innovations)
The NIDHI Scheme (National Initiative for Development and Harnessing Innovations), introduced by the Department of Science & Technology (DST), Government of India, is an umbrella programme. It was developed to nurture and grow ideas, and knowledge- and technology-based innovations into startups. The various NIDHI programmes include – NIDHI-EIR, NIDHI- PRAYAS, NIDHI-SSS, NIDHI- CoE, NIDHI- GCC and NIDHI- Accelerator. These programmes are implemented through Technology Business Incubators (TBIs) around the country.
The objective of this scheme is to promote student startups and help young entrepreneurs accelerate their startup journeys by providing initial funding. They will financially support the selected startups with Rs 10 Lakhs. It is important to note that the NIDHI startup scheme aims to help out 20 student startups every year. These startups must be student startups of IEDC/NewGenIEDC (Innovation and Entrepreneurship Development Centres).
|NIDHI Scheme||Click Here|
6. Credit Linked Subsidy Scheme (CLCSS)
The Credit Linked Subsidy Scheme, also known as CLCSS is an initiative that was launched in the year 2000 by the Government of India and aimed to help MSMEs upgrade their technology so they could maximise their revenue generation. Due to the shortage of funds, MSMEs are often forced to work with outdated technology, causing delays in their work. But, with the CLCSS initiative, MSMEs located in rural and semi-urban parts of India can drastically upgrade their existing equipment and technology.
This scheme allows businesses to receive up to a 15% subsidy on their investment in certain machinery. The CLCSS initiative is available to any industry that has upgraded from Small Scale to Medium Scale.
The documents required for this scheme include KYC Documents, Business proof, Address proof, an Aadhaar card, Pan or voter ID card, and your recent photograph.
7. Digital India GENESIS
Digital India GENESIS (Gen-next Support for Innovative Startups) is a deep-tech startup platform initiative launched by the Ministry of Electronic and Information Technology (MeitY). It was introduced in the year 2015 and aims to help tech startups from mostly Tier II and Tier III cities scale up their operations. The selected ten thousand startups will get their help for five years, and will be provided with the right tools to scale up. The PM of India wanted to sustain the tech ecosystem, transform India, and empower society.
|Digital India GENESIS||Click Here|
8. MSME Sustainable (ZED) Certification
The ZED Certification Scheme was launched with the aim of creating awareness amongst MSMEs about Zero Defect and Zero Effect (ZED). It includes three levels of certification: Bronze, Silver and Gold, and is primarily based on the parameters of Quality, Safety, Production, Cleanliness and more.
With this scheme, the PM of India wanted to encourage MSMEs to manufacture products while keeping in mind the impact these products will have on the environment. Under this government scheme, both startups and MSMEs will get financial and technological support to ensure zero defects in the goods. Currently, under this scheme, the government has provided around INR 7.43 crore in financial support.
|MSME Sustainable (ZED) Certification||Click Here|
9. The Multiplier Grants Scheme (MGS)
The Multiplier Grants Scheme (MGS) was launched by the Department of Electronics and Information Technology (DeitY) with the aim of bringing together industry and academic institutions. They wanted to encourage R&D collaboration for the development of products and packages. This process would strengthen the relationship between industries and institutes and help drive the development of indigenous products and packages faster.
The proposal to get financial support from the government must be submitted jointly by both the industry and the institution. Under this scheme, the government will provide double the financial aid than the one provided by industry, but only if the R & D for the development of products and packages supported by industry can be commercialised at the institutional level.
10. Startup Leadership Program (SLP)
The Startup Leadership Program (SLP) is a renowned global training program for innovators, leaders, and founders of today’s world who want to become startup CEOs. It is a non-profit educational program that not only provides classes to the next generation of leaders and entrepreneurs but also works as a professional network for them. Initially founded in Boston in 2006 and launched in India in 2016, SLP in India is a six-month-long program with 10 classes in total.
They don’t have a specific age limit, hence, anyone with a dream and interest in becoming a leader or entrepreneur can join it. This startup initiative has educated over 3,900 people in over 14 countries and helped over 2000 startups.
|Startup Leadership Program (SLP)||Click Here|
11. ASPIRE (A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship)
The ASPIRE Scheme was introduced by the Government of India in 2015 with the aim of improving rural India’s social and economic aspects of life, making it one of the most popular schemes launched by the Indian Government. This scheme, introduced by the Ministry of Micro, Small, & Medium Enterprises, aids in setting up a network of technology centres and incubation centres to boost startup ventures in the agro-industry, as a large part of India still depends on agriculture for their livelihood.
One of the main objectives of ASPIRE is to create new job opportunities to reduce unemployment and strengthen the competitiveness of Startups and the MSME sector. All MSMEs with an Entrepreneurs Memorandum Registration are eligible for this scheme.
12. Startup India Initiative
The Startup India Initiative is, by far, the largest government scheme for startups in India. Started by Prime Minister Narendra Modi in 2016, over 50,000 businesses come under this scheme.
It has an extensive collection of ebooks, courses, and mentorship programs to promote leadership and skills. Critical benefits of this scheme for entrepreneurs in India include:
- Tax exemption
- Cost reduction
- Easy business wind-up option in 90 days.
- Access to funds
- Self-certification under labor and environmental laws
- Fast-track patent registration with an 80% fee rebate.
Here’s the eligibility for this government funding for startups:
- The startup should be a registered partnership firm, private limited company, or LLP.
- Turnover shouldn’t exceed 100 crores in any of the previous financial years.
- The startup must apply within ten years from the date of formation.
|Startup India Initiative||Click Here|
13. Startup India Seed Fund Scheme
The Startup India Seed Fund Scheme (SISFS) provides financial assistance to early-stage startups for market entry, product trials, commercialization, prototype development, and proof of concept. This is one of the best scheme for funding for startups in India by government.
The government has allocated a total budget of 945 crores to this scheme. It expects to provide funds to 3600 startups. Grants of up to 20 lakh rupees will be provided for developing trials or prototypes. This scheme also aims to enhance the innovation culture and development in the country.
Here’s the eligibility criterion for this govt. scheme for startups.
- The startup must be recognized by DPIIT.
- The product or idea must be scalable, innovative, tech-based, and feasible.
- Indian promoters must hold shares equal to or more than 51%.
- The startup must apply within two years of its incorporation for this scheme.
The USP of this government scheme is that it’s industry agnostic and doesn’t require physical incubation.
|Startup India Seed Fund Scheme||Click Here|
14. Pradhan Mantri Mudhra Yojna
PMMY is a scheme for startups and MSMEs that aims to provide access to capital and loans to help ventures sustain and grow their business. Launched in 2015, eligible applicants can claim loans of up to 10 lakhs for working capital requirements. The repayment period for loans availed under this scheme is five to seven years.
There are three categories under which loan gets provided in PMMY:
- Shishu – Up to 50,000
- Kishor -Up to 5 Lakhs
- Tarun – Between 5-10 Lakhs
Startups must be involved in trading, manufacturing, services, or any other non-farm business to be eligible for this scheme.
15. Atal Innovation Mission
This scheme belongs to a category of government schemes for startups with a mandate to promote entrepreneurship and innovation countrywide. The core focus of this scheme is on tier-2 and tier-3 cities.
Also known as AIM, this scheme provides a platform for promoting world-class innovation hubs, sectoral focus, grand challenges, and talent initiatives. Some key programs under this scheme are innovation centers, Atal tinkering labs, community incubation centers, and innovation centers.
Besides providing financial support and resources to startups, the scheme offers easy access to information and resources.
|Atal Innovation Mission||Click Here|
16. Credit Guarantee Trust Fund
The Credit Guarantee Trust Fund For Micro & Small Enterprises (CGTMSE) provides collateral-free loans for MSMEs and selected startups. The amount of these loans can range up to INR 1 crore. It helps retailers, self-help groups, educational institutes, SMEs, and farmers.
This scheme facilitates the flow of credit in the startup sector and strengthens the credit delivery system. The CGTMSE is primarily for service and manufacturing businesses. Loans under this scheme can be claimed as working capital or term loan.
17. Venture Capital Assistance Scheme
It is one of the most sought-after government schemes for startups in the agricultural sector. Under this scheme, entrepreneurs can receive interest-free debt and OD. It allows them to cover up their working capital.
The core focus of this scheme is on the development of the Agro-industry. A fund of INR 10,000 crores was fixed by the government under this scheme. This fund provides INR 2500 crore as interest-free debt financing to small and marginal farmers.
The benefits of this scheme include:
- Overdraft facility and term loan
- Facilitate Agri-based venture setup
- Longer repayment period of up to 5 years.
- Helps startups set up an Agro business by arranging meets, visits, and training.
- Interest-free debt financing from financial institutes.
|Venture Capital Assistance Scheme||Click Here|
18. The Standup India Scheme
This scheme is one of the few government schemes for startups that encourage entrepreneurship among scheduled tribes (STs), scheduled castes (SCs), and women by offering financial help as loans.
The SIC, launched by the Prime Minister in 2016, aims to promote employment generation for backward castes and women and entrepreneurial spirit in this section.
Banks will provide loans of up to INR 1 crore to at least one SC or ST borrower and a woman borrower. There’s a flexible loan repayment time of seven years under this scheme. However, only first-time entrepreneurs can apply for this scheme.
|The Standup India Scheme||Click Here|
19. Design Clinic Scheme
The government of India wants every startup and MSME to build a design-centric approach for fueling their business. In order to boost experimentation with new designs, the MSME Ministry established this scheme.
It aims to encourage an ecosystem of sustainable design through ongoing skill development and training. The government shall extend up to INR 60,000 for attending design seminars and up to INR 3.75 lakhs to the startup for conducting the seminar under this scheme.
The hope behind this scheme is that entrepreneurs would learn the latest trends and practices about designs and network with like-minded individuals.
|Design Clinic Scheme||Click Here|
20. Raw Material Assistance Scheme
This government scheme for startups in India was launched by National Small Industries Corporation (NSIC). It aims to assist manufacturers and startups with procuring raw materials. Under this scheme, applicants can claim low-interest loans and financial help to get raw materials.
|Raw Material Assistance Scheme||Click Here|
21. Single Point Registration Scheme
This government startup scheme offers a single-window system for filing tenders to startups and MSMEs. It is administered by the National Small Industries Corporation.
The goal of this scheme is to ease restrictions for startups applying for government tenders. SRPS reduces the time, cost, and requirements with participation in government tenders. However, it’s essential that the startup shouldn’t have completed a year of incorporation if they want to apply for this scheme.
|Single Point Registration Scheme||Click Here|
Benefits of Startups Government Schemes in India
The goal behind these schemes and funds has been to create an environment where ventures can thrive. So, if you’re a budding entrepreneur in India looking to start a business, you must know about these government schemes for startups. While each startup government scheme in India comes with its pros, there are some benefits that they share. Here are the key benefits of government startup schemes in India.
- Financial assistance
- Facilitate funding
- Provide collateral-free loans
- Offer mentorship
- Tax exemptions
- Networking opportunities
- Easy access to vital resources
FAQs on List of Government Schemes in India
The frequently asked questions on Government Schemes in India are given below:
What are some of the government schemes available for startups in India?
There are several government schemes for startups available in India, and a few of them are:
Startup India Scheme
Atal Innovation Mission
Pradhan Mantri Mudra Yojana, and much more.
What is the Startup India Scheme?
The government of India introduced the Startup India scheme to promote the entrepreneurship development schemes in India and innovation among the youth of the country. The Startup India scheme offers several benefits to the startups that are eligible, including tax exemptions, funding support, and mentorship opportunities. Startup India Scheme is one of the best schemes for entrepreneurs in india
What is the ATAL Innovation Mission?
The Atal Innovation Mission is a government scheme that aims to promote innovation and entrepreneurship schemes in India and it is one of the best government grants and schemes for startups in India. There are several programmes and schemes offered by the Indian government to help startups in India, including the Atal Incubation Centres, Atal Tinkering Labs, and Atal New India Challenges. The eligibility criteria and application process may vary depending on the scheme, so make sure to carefully read the guidelines before applying.
What is Stand-Up India?
Stand-Up India is another government scheme that aims to provide financial support to women and SC/ST entrepreneurs in the country. It is the best government schemes for entrepreneurship development in India for women. Through this scheme, women or SC/ST entrepreneurs can get a bank loan of anywhere between Rs. 10 lakh and Rs. 1 crore.
What is the Pradhan Mantri Mudra Yojana?
Pradhan Mantri Mudra Yojana is a government scheme in India aimed at providing financial assistance to small and micro enterprises enterprises. The scheme offers loans up to Rs 10 lakh to eligible startups and entrepreneurs. One can apply for these government schemes online through their respective portals. This is one of the most used government schemes for entrepreneurs in India.
What are the government schemes for startups in India?
The Startup India Seed Fund Scheme and the Startup India initiative are two of the biggest government schemes for startups in India. Other schemes include the Pradhan Mantri Mudhra Yojna, Standup India Scheme, and Venture Capital Assistance Scheme.
How can I get government funding for startups in India?
There are many government schemes for startups that you can apply for to get funding. One of the best schemes for startups seeking funds is the Startup India Seed Fund Scheme.
How Indian government is helping the Indian startups?
The Indian government actively supports entrepreneurs and startups by launching many programs and initiatives. They provide financial assistance, technical assistance, and subsidies, among other facilities, to startups through numerous schemes.
Who are eligible for the startup India scheme?
In order to be eligible for the Startup India scheme, the startup should be a registered partnership firm, private limited company, or LLP. Besides, its turnover shouldn’t exceed 100 crores in previous financial years. The startup must also apply within ten years from the date of formation.
Do startups need GST?
Startups must register for GST. However, if the annual turnover of the startup is below INR 40 lakhs, they are exempt from GST registration.
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