India is home to 140,000 startups in a variety of industries, including fintech, healthtech, agritech, and deep tech. To ensure that funding for startups in India by government is accessible, transparent, and scalable, a number of strategic policies and programs must be put in place.
Understanding these government programs could be the key to unlocking a wealth of funding, mentorship, tax advantages, and market access if you are an entrepreneur or intend to start a business. We will assist you in sorting through the top 10 government schemes for startups in India in this blog post so you can connect with the appropriate people to support your business.
Startup India Scheme
Introduced: 2016
Purpose: Create a robust startup ecosystem through policy reforms, easing compliance, and access to financing.
Key Highlights:
- 3-year tax holiday for eligible startups under section 80-IAC of the Income Tax Act
- Access to a ₹10,000 Crore Fund of Funds (SIDBI is the operational manager)
- Self-certification on labor & environmental laws
- Faster incorporation of the company through SPICe+ and recognition by DPIIT
Importance:
The Startup India Scheme is a first-order policy that has changed the way startups are treated in India. It is the first step for entrepreneurs to avail themselves of a range of benefits, including tax benefits, government tenders and access to other various schemes.
Stand-Up India Scheme
Launched: 2016
Objective: To promote entrepreneurship among SC/ST and women entrepreneurs.
Key Benefits:
- Collateral-free loans between ₹10 lakh and ₹1 crore.
- For greenfield ventures in manufacturing, services, or trading.
- Repayment period of up to 7 years with an 18-month moratorium.
Why It Matters:
This scheme enhances inclusivity in India’s entrepreneurial landscape by providing funding for startups in India by government, especially to underrepresented communities.
Startup India Fund of Funds (FFS)
Commenced: 2016
The goal is to use Alternative Investment Funds (AIFs) to provide funding to startups.
Principal Advantages:
- A corpus of ₹10,000 crore.
- SIDBI provides venture capitalists who invest in startups with indirect funding.
- Promotes both growth-stage and early-stage funding.
Why It Is Important
Knowing how this government scheme for startups supports venture funds can help you find well-funded investors if you’re looking for VC funding.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Launched: 2000
Objective: To provide collateral-free loans to MSMEs and eligible startups.
Key Benefits:
- Credit guarantee coverage up to ₹2 crore.
- Covers both working capital and term loans.
- Reduces lenders’ risk, encouraging them to fund startups.
Why It Matters:
For startups with limited assets or revenue, CGTMSE is a lifeline for accessing capital without security.
Atal Innovation Mission (AIM)
Launched: 2016
Objective: To foster innovation and entrepreneurship from grassroots to enterprise level.
Key Benefits:
- Establishes Atal Tinkering Labs (ATL) in schools.
- Creates Atal Incubation Centers (AICs) for startups.
- Provides mentorship and seed funding support.
Why It Matters:
Whether you’re a school innovator or a scaling tech startup, AIM offers structured support through government incubation and R&D grants.
SAMRIDH Scheme (MeitY)
Launched: 2021
Objective: To scale early-stage digital startups via mentorship and funding.
Key Benefits:
- Up to ₹40 lakh per startup in financial assistance.
- Access to corporate accelerators, VCs, and angel investors.
- Focus on deep-tech, AI, and digital innovation.
Why It Matters:
For startups in emerging tech, this scheme bridges the funding gap between MVP and market-ready products.
MUDRA Loans (Pradhan Mantri MUDRA Yojana – PMMY)
Launched: 2015
Objective: To offer micro-financing for nano and small-scale enterprises.
Loan Categories:
- Shishu: Up to ₹50,000
- Kishor: ₹50,001 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
Key Benefits:
- No collateral required.
- Encourages first-time entrepreneurs.
- Available via public sector banks and NBFCs.
Why It Matters:
Perfect for solopreneurs and local businesses seeking startup capital without security.
Startup India Seed Fund Scheme (SISFS)
Launched: 2021
Objective: To provide seed funding for idea-stage startups.
Key Benefits:
- Grants up to ₹20 lakh for prototype development.
- Equity or convertible debenture support up to ₹50 lakh.
- Access to incubators for mentoring and workspace.
Why It Matters:
This seed fund helps validate your startup idea before approaching external investors or launching in the market.
GeM (Government e-Marketplace) for Startups
Launched: 2016
Objective: To simplify government procurement for startups.
Key Benefits:
- Startups can register directly as sellers.
- Exemption from prior turnover or experience conditions.
- Huge visibility among government departments and PSUs.
Why It Matters:
If you’re in B2B, this is your chance to become a government supplier without a complex tender process.
SPICe+ (Simplified Proforma for Incorporating a Company Electronically)
Launched: 2020
Objective: To ease business incorporation and statutory registrations.
Key Benefits:
- Integrates 12 services including PAN, TAN, GST, ESIC, EPFO, and bank account opening.
- Completely digital and paperless registration.
- Saves time and reduces compliance cost.
Why It Matters:
Every startup begins with registration. SPICe+ makes the entire process faster, easier, and centralized.
Honorable Mentions
While we’ve covered the top 10 government schemes for startups in India, here are a few others worth exploring:
- SIP-EIT (Support for International Patent Protection): Reimburses patent filing costs.
- DIDF (Dairy Infrastructure): For dairy startups and cooperatives.
- Digital India Bhashini: Promotes AI-based Indian language tech.
- MeitY Startup Hub (MSH): Focuses on fintech, cybersecurity, and AI-based innovations.
Final Thoughts
India’s vibrant startup ecosystem is accelerated by an ever-expanding bouquet of government schemes for startups–providing them with funding, mentorship, market access, and infrastructure. Starting from deep-tech solutions, consumer apps, to community ventures–the government has an initiative to support your vision.
At Unboxfame, we empower startups not only to create some stellar brand identities but also to guide them through government policies and funding programs. With the right branding, compliance, and strategy–there goes your next big success story.