Top Government Schemes for Startups in India
India’s startup ecosystem has grown into one of the largest in the world, driving innovation across fintech, edtech, manufacturing and healthcare. But to build a successful startup requires more than just an idea; it needs capital, mentorship and supportive government policies.
To help entrepreneurs turn ideas into sustainable ventures, the Government of India offers several flagship startup schemes providing funding, incubation, tax benefits and credit support. Here’s a comprehensive look at the top government schemes for startups in India (2025), fully updated to match official guidelines.
1. Startup India Initiative (DPIIT Recognition)
Launched in 2016, the Startup India Initiative under the Department for Promotion of Industry and Internal Trade (DPIIT) remains the foundation of India’s startup policy. DPIIT-recognised startups enjoy a host of privileges, including:
- Simplified compliance and self-certification under nine labour and three environmental laws.
- Tax exemption for any three consecutive years out of the first ten years under Section 80-IAC of the Income Tax Act.
- Faster IPR examination and up to 80% rebate on patent filing fees and 50% rebate on trademark filings.
- Public procurement benefits, including exemption from prior experience and turnover criteria in select government tenders.
- Access to mentorship and networking opportunities through the MAARG platform (Mentorship, Advisory, Assistance, Resilience and the Growth).
Ideal for: Startups seeking formal recognition, credibility and legal/tax benefits, it is considered to be one of the top government schemes for startup in India.
2. Startup India Seed Fund Scheme (SISFS)
Introduced in 2021, the Startup India Seed Fund Scheme (SISFS) provides crucial early-stage financial support to startups through accredited incubators. It helps bridge the gap between idea and proof-of-concept or market-ready product.
Funding Structure:
- Up to ₹20 lakh (grant) for proof of concept or prototype development.
- Up to ₹50 lakh (convertible debentures or debt-linked instruments) for market entry, commercialization or scaling.
Funds are disbursed through eligible incubators registered on the Startup India portal. The total approved corpus of the scheme is ₹945 crore.
Ideal for: Early-stage startups validating their idea or developing prototypes.
3. Credit Guarantee Scheme for Startups (CGSS) — Revised May 2025
The Credit Guarantee Scheme for Startups (CGSS) enables startups to obtain collateral-free loans by providing a government guarantee to lending institutions such as banks, NBFCs and AIFs.
Latest Update:
In May 2025, the scheme’s guarantee to cover limit was increased from ₹10 crore to ₹20 crore per borrower, significantly expanding access to working-capital and term loans.
Coverage:
- Up to 85% guarantee cover for loans up to ₹5 crore.
- Up to 75% cover for loans above ₹5 crore and up to ₹20 crore.
Ideal for: Growth-stage startups needing collateral-free credit for scaling or operations.
4. SAMRIDH Scheme (MeitY)
The SAMRIDH (Startup Accelerators of MeitY for Product Innovation, Development and Growth) scheme, launched by the Ministry of Electronics and Information Technology (MeitY), supports product-based digital startups.
Key Benefits:
- Funding support through government-approved accelerators and co-investors.
- Structured accelerator and mentorship programs to scale operations.
- Investor and market linkages for startups raising pre-Series-A or Series-A capital.
The scheme aims to support over 300 startups by 2026 in partnership with leading accelerators across India.
Ideal for: Tech and digital product startups seeking funding and acceleration support.
5. Atal Innovation Mission (AIM) – NITI Aayog
The Atal Innovation Mission (AIM) by NITI Aayog fosters innovation and entrepreneurship across various stages and sectors. Its initiatives include:
- Atal Incubation Centres (AICs): Provide workspace, mentorship and seed funding to early-stage startups.
- Atal Tinkering Labs (ATLs): Promote hands-on innovation among school students.
- Atal Community Innovation Centres (ACICs): Support rural and semi-urban innovators.
AIM serves as a bridge between ideas and commercial ventures by offering incubation and non-dilutive government grants.
Ideal for: Idea-stage entrepreneurs, innovators and students.
6. SIDBI Fund of Funds for Startups (FFS)
Managed by the Small Industries Development Bank of India (SIDBI), the Fund of Funds for Startups (FFS) channels capital to startups indirectly through SEBI-registered venture funds (AIFs).
- Total corpus: ₹10,000 crore.
- SIDBI invests in venture funds, which in turn invest in eligible startups.
- Enables access to long-term venture and growth capital.
Ideal for: Startups seeking institutional venture capital investment.
7. Intellectual Property Rights (IPR) Support & Tax Benefits
To protect innovation and encourage intellectual property creation, the government offers:
- Fast-track patent examination with up to 80% rebate on patent filing fees.
- 50% rebate on trademark filing fees.
- Three-year income-tax holiday for eligible startups (under Section 80-IAC).
- Capital gains exemption under Section 54GB for investments in eligible startups.
Ideal for: Innovation-driven startups seeking IP protection and tax relief.
8. Pradhan Mantri Mudra Yojana (PMMY)
The Pradhan Mantri Mudra Yojana (PMMY) provides the collateral-free loans up to the limit of ₹10 lakh to micro and small businesses. While not exclusive to startups, it is ideal for small-scale or early-stage entrepreneurs.
Categories:
- Shishu: Up to ₹50,000
- Kishor: ₹50,000 – ₹5 lakh
- Tarun: ₹5 lakh – ₹10 lakh
Ideal for: Micro-enterprises and small startups requiring working capital or asset financing.
How to Choose the Right Scheme
Amond these top government schemes for startups, you can choose the best and suitable for you, it depends on factors, as we mentioned below:-
| Startup Stage | Recommended Schemes |
| Idea / Prototype | SISFS, Atal Innovation Mission |
| Product Development / Early Revenue | SAMRIDH, Mudra Yojana |
| Scaling / Expansion | CGSS, SIDBI FFS |
| Innovation / IP-Driven | IPR Support, Startup India Tax Benefit |
| Read More:- Importance of Annual Filing For Private Limited Companies |
Conclusion
India’s startup ecosystem is now one of the most structured and supportive in the world. Through initiatives like Startup India, SISFS, CGSS and AIM, the government has created an integrated framework covering every stage, from ideation to funding and expansion. You must have come to know top government schemes for startups in 2025, that can help Indian startups to grow, for more assistance, you can contact to CRSPL Business Consultants.
To begin your entrepreneurial journey:
- Register on the Startup India Portal.
- Apply for DPIIT recognition to access central benefits.
- Explore funding and incubation options suited to your startup’s growth stage.
With the right planning and the government’s continued support, your startup can thrive in India’s dynamic innovation ecosystem in 2025 and beyond.
