List of Government Schemes to Support Startups in India

The Indian government is actively working towards creating a strong startup ecosystem in the country through various initiatives. One such initiative is the establishment of a dedicated ministry or department that supports and promotes new businesses.

In addition, the Central Government of India has introduced multiple startup schemes to provide financial assistance to emerging startups and foster entrepreneurship in the country. These schemes aim to bolster the growth of startups by providing them with the necessary resources and support to thrive in the competitive business environment.

“Take up one idea. Make that one idea your life, think of it, dream of it, live on that idea, let the brain, muscles, nerve, every part of your body be full of that idea and just leave every other idea alone. This is the way to success.”
- Mr Narendra Modi, Prime Minister of India

Here is a list of government schemes launched to develop and encourage entrepreneurship in India.

Aatmanirbhar Bharat App Innovation Challenge
SAMRIDH Scheme
Startup India Seed Fund
Startup India Initiative
Startup Leadership Program
ASPIRE
Pradhan Mantri Mudra Yojana (PMMY)
Chunauti
Qualcomm Semiconductor Mentorship Program (QSMP)
Digital India Bhashini
Digital India GENESIS
India Water Pitch-Pilot-Scale Startup Challenge
Ministry of Skill Development and Entrepreneurship
ATAL Innovation Mission
eBiz Portal
Dairy Processing and Infrastructure Development Fund (DIDF)
Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
Multiplier Grants Scheme (MGS)
Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE)
Software Technology Park (STP) Scheme
The Venture Capital Assistance Scheme (VCA)
Loan For Rooftop Solar Pv Power Projects
NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)
Single Point Registration Scheme
Modified Special Incentive Package Scheme (M-SIPS)
Stand Up India Scheme
High Risk - High Reward Research
IREDA-NCEF Refinance Scheme
Dairy Entrepreneurship Development Scheme
Drone Shakti
Zero Defect Zero Effect (ZED) Certification Scheme
Sub-Mission on Agricultural Mechanization (SMAM)
Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
Design Clinic Scheme for Design Expertise

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#1. Aatmanirbhar Bharat App Innovation Challenge

The 4th of July 2020 has been quite a historic day for the Indian startups and the gear that the startups of India have got after that day because it is on the same day that the Prime Minister of India, Narendra Modi has announced the launch of the "Aatmanirbhar Bharat App Innovation Challenge".

In addition to this, the Indian government has also launched several government schemes for startups in India, which aim to provide financial assistance, mentorship, and support to the budding entrepreneurs of the country. These schemes include the Startup India Scheme, Standup India Scheme, and many more.

With this launch, PM Modi urged the startups of India to come together and develop ‘Made in India’ applications that will facilitate not only the people of India but the whole world. In his tweet, PM urged all the tech and startup community to come forward and develop world-class mobile applications under the challenge.

The challenge was launched under the Digital India mission by the collaboration of The Ministry of Electronics And IT with The Atal Innovation Mission (AIM) which is an endeavour of Niti Aayog.

In a second tweet, Prime Minister Narendra Modi urged everyone with such a working product or ideas and vision to create one to come forward and take part in the challenge. He also gave a tagline for this challenge, "Let us Code for an Aatmanirbhar Bharat".

It was then only a few days since the Government of India banned 59 Chinese mobile applications such as TikTok, ShareIt, Xender, etc. from the Indian market. And the Government of India has already started to make India Aatmanirbhar in terms of world-class mobile applications.

"Today, when the entire nation is working towards creating an Aatmanirbhar Bharat, it is a good opportunity to give direction to their efforts, momentum to their hard work and mentorship to their talent to evolve Apps which can satisfy our market as well as compete with the world.", wrote PM Narendra Modi on his LinkedIn post.

The innovation challenge was launched in 8 different categories. Below listed are the categories and the apps that won them on the first instalment of the challenge:

1. Office Productivity and Work From Home - Zoho Cliq & Workplace
2. Social Networking - Chingari
3. News - Logically
4. Games - HitWicket Superstars
5. E-Learning- Hello English: Learn English
6. Health and Wellness - StepSetGo
7. Entertainment - CaptionPlus
8. Business (including Agritech and Fintech) - Zoho

All the winners of the app innovation challenge received Rs 20 lakhs, while the companies/apps in the second and third positions got Rs 15 lakhs and Rs 10 lakhs each.

In 2021, to celeberate 75th year of Indian Independence, Amrit Mahotsav App Innovation Challenge 2021 was launched as a continuation of the Aatma Nirbhar App Innovation Challenge orgainsed in 2020 that helped identify 24 Winning Apps and 20 Promising Apps. No further challenges have been organised since then.

#2. SAMRIDH Scheme

Ashwini Vaishnaw, who was then a newly appointed Minister of Electronics Information and Technology (MeitY) launched the SAMRIDH scheme, which stands for Startup Accelerators of MeitY for Product Innovation, Development, and growth, on August 25, 2021, after a little over a week of his announcement that the government will support the startups in the initial stages.

The SAMRIDH scheme will support Accelerators to select and accelerate potential IT based startups to scale for solving India’s problems creating positive social impact. The SAMRIDH scheme will provide first round of funding of up to ₹40 lakh (with an average of ₹ 30 Lakh per startup per cohort). The programme will invite applications from existing and upcoming Accelerators to become partners with MeitY and provide startups accelerator programmes of 6 months every year. It is proposed to support around 300 tech Start-Ups through about 40 cohorts (size of 8-10 Start-Ups) under the program.

ELIGIBILITY:

• Have been in the business of incubation for more than 3 years and supported more than 50 start-ups of which at least 10 have received non-public investment OR having targeted accelerator programs with experience of running at least 3 cohorts with activities listed as desirable under SAMRIDH.
• Have operations in India.
• Have the necessary space and infrastructure to carry out activities for the start-ups.
• Should demonstrate capabilities with regard to supporting Start-Ups for domestic and international market immersion.

#3. Startup India Seed Fund

On 16 January 2021, Prime Minister Narendra Modi announced the launch of the 'Startup India Seed Fund' to help startups and support ideas from aspiring entrepreneurs. PM Modi said that the government is taking important measures to ensure that startups in India do not face any capital shortage.

The Seed Fund will be disbursed to eligible startups through eligible incubators across India. An Experts Advisory Committee (EAC) has been constituted by Department for Promotion of Industry and Internal Trade (DPIIT) , which will be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme.

DPIIT has created Startup India Seed Fund Scheme (SISFS) with an outlay of INR 945 Crore and will support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years (2021-2025).

ELIGIBILITY :

• A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application.
• The startup must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling.
• The startup should be using technology in its core product or service, or business model, distribution model, or methodology to solve the problem being targeted.
• Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc.
• Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to a prototyping facility.
• Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme, as per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
• A startup applicant can avail of seed support in the form of grants and debt/convertible debentures each once as per the guidelines of the scheme.

#4. Startup India Initiative

Launched on 16th January, 2016, the Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Startup India Team, which reports to the Department for Industrial Policy and Promotion (DPIIT).

Under the Startup India initiative, eligible companies can get recognised as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more. Over 96,000 startups are registered with the Department for Promotion of Industry and Internal Trade (DPIIT) till March 2023.

ELIGIBILITY :

• It is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
• Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees.
• Entity is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
  
• Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.

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#5. Startup Leadership Program

The Startup Leadership Program, as the name indicates, is built to empower outstanding founders and innovators. Launched in 2016 in India, SLP is designed as a "highly selective 6-month world-class training program and lifetime network".

This startup initiative first began in Boston in 2006, and has spread its wings in over 14 countries and 28+ cities, and has helped 2000+ startups, influenced 3600+ entrepreneurs, and has raised around $2.4 bn+ in funds to date. In addition to programs like SLP, there are also various government initiatives that offer help for business start-ups.

ELIGIBILITY :

• Age: They do not record age information, but they believe that the youngest Fellow was 19 and the oldest was 60 when they joined.
• Sector: 42 Subsectors including but not limited to Technology, Lifesciences, Fintech, Manufacturing, Consumer, Food & Beverages, CleanTech and Social Enterprise
• Experience: A record of leadership and achievement (not necessarily in a startup), visible passion for SLP and actions that indicate you will participate in our community
• Aspiration: A clear indication that they either founded or run a startup, are an innovator or idea generators who would like to turn an idea into a company, or are a VC who wants to be closer to entrepreneurs.
  

#6. ASPIRE

The government has made continuous efforts to improve the social and economic aspects of life in rural areas of India and one of the most popular schemes that the Indian government has sanctioned in this regard is ASPIRE. A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE) is a Government of India initiative, promoted by the Ministry of Micro, Small and Medium Enterprises (MSME).

The mentioned scheme was launched in 2015 to offer proper knowledge to the entrepreneurs to start with their business and emerge as employers. Since 56% of the Indian population lives in rural areas, the government has promoted entrepreneurship and innovation in the rural sector with this scheme. The ASPIRE scheme aims at increasing employment, reducing poverty, and encouraging innovation in rural India.

However, the main idea is to promote the agro-business industry. The Ministry of Medium and Small Enterprises has tried to boost economic development at the grassroots level. The total budget of the scheme initially was INR 200 crores for the period of 2014-2016.

ELIGIBILITY :

• Any institution and/or agencies under any state government or the Government of India. These institutions must be engaged in the field of rural development, business management, technology and entrepreneurial development.

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#7. Pradhan Mantri Mudra Yojana (PMMY)

Micro Units Development Refinance Agency (MUDRA) banks have been created to enhance credit facilities and boost the growth of small businesses in rural areas. The government has introduced this scheme to support small businesses in India. In 2015, the government allocated INR 10,000 crores to promote startup culture in the country.

The MUDRA banks provide startup loans of up to INR 10 lakhs to small enterprises, and businesses, which are non-corporate, and non-farm small/micro-enterprises. MUDRA comes under Pradhan Mantri Mudra Yojana (PMMY) which was launched on 8 April 2015.

The loans have been categorized as— Shishu (up to Rs 50,000), Kishore (between Rs 50,000 and Rs 5 lakh) and Tarun ( Rs 10 lakh)."As of March 24, 2023, about Rs 23.2 lakh crore has been sanctioned in 40.82 crore loan accounts," stated Finance Minister Nirmala Sitharaman." Additionally, there are various other initiatives and programs that offer startup support from government.

ELIGIBILITY :

• Any Indian citizen with a business plan for a non-farm income-producing activity such as manufacturing, processing, commerce, or service sector with a credit requirement of up to 10 lakh can approach a Bank, MFI, or NBFC for MUDRA loans under PMMY.

#8. Chunauti

Chunauti, the pandemic-influenced scheme, is a government of India initiative named CHUNAUTI'(Challenge Hunt Under NGIS for Advanced Uninhibited Technology Intervention), to invite Startups to develop solutions for problems amid pandemic. Launched in August 2020, Chunauti is a start-up challenge initiative under the Next Generation Incubation Scheme (NGIS).
The government has chosen a budget of over INR 95 crores over a period of 3 years for this program. This programme aims to identify around 300 startups working in identified areas.

The startups selected through the challenge would be provided incubation support, mentorship, all relevant facilities, as well as funding support such as cloud credits from leading third-party service providers, seed funding of up to INR 25 lakhs, as well as INR 10,000 in monthly monetary support to each intern (startup in pre-incubation) for a period of six months to help them evolve their business plan and solution around the proposed idea.

With the objective to build a strong Eco-system for nurturing innovation and Startups in the country, these initiatives are introduced. The government is also taking steps to reduce the hurdles in the path of the startups. India seems to be going towards the era of entrepreneurship, as India ranks 63 in ease of doing business around the world.

ELIGIBILITY:

• The challenge invites proposals/applications from Indian startups, who are working in domains related to software product development.
• Startups registered with DPIIT under the start-up India programme are encouraged to participate in this programme.
• Individual Academicians, Researchers, Educators, Entrepreneurs, partnership firms, and LLPsmay also participates, however, if they are selected, then they will have to register as a private limited company in stipulated time (preferably within 3 months).

#9. Qualcomm Semiconductor Mentorship Program (QSMP)

Qualcomm, the mobile chipset manufacturing giant has partnered with the Centre for Development of Advanced Computing (C-DAC) to conduct the Qualcomm Semiconductor Mentorship Program (QSMP) 2022 for startups that are working in the Indian semiconductor space. C-DAC is the research and development organisation of the Ministry of Electronics and Information Technology (MeitY).

Qualcomm India is planning to provide mentorship, technical training, and industry outreach opportunities to the Indian startups that hail from the semiconductor space with this program. As per the news dated April 30, 2022, Qualcomm India will shortlist around 10 Indian startups for QSMP 2022. Each of these startups will be paired with a Qualcomm India leader for mentorship on product planning and development.

ELIGIBILITY:

• Singular startup firms with experience in hardware and embedded design.
• Only registered Indian firms will be eligible for further examination based on the quality of work presented. This challenge is not open to students.
• Just one submission will be accepted per firm. Several proposals from the same firm may be disqualified.
• Participating firms should have a minimum of one year of experience in embedded design and solutions. Design and fabrication of semiconductors and semiconductor devices (front-end and/or back-end assembly, test, and packaging).

#10. Digital India Bhashini

Digital India Bhashini was an initiative that PM Narendra Modi announced along with a slew of other initiatives like Digital India GENESIS and Indiastack.global, to boost the Indian startups, as he inaugurated the Digital India week 2022 in Gandhinagar on July 4, 2022.

The Digital India Bhashini scheme aims to help the Indians with easy access to the internet and digital services in vernacular languages.  

#11. Digital India GENESIS

Digital India GENESIS is another scheme that Modi launched on July 4, 2022. The "GENESIS" in the scheme implies "Gen-next Support for Innovative Startups". This is a government of India scheme that is launched to empower the national deep-tech startups.

The total budget of this programme and the Digital India Bhashini is disclosed, which is around Rs 750 crore.

#12. India Water Pitch-Pilot-Scale Startup Challenge

The government of India launched a startup challenge on March 12, 2022, which was announced by Union Minister Hardeep Singh Puri, where selected startups of India will get a grant of Rs 20 lakhs in three tranches of Rs. 5 lakh, Rs. 7 lakh and Rs. 8 lakh respectively on fulfilling certain conditions/ milestones of work as per their project proposal.

While announcing the water startup initiative at an event in New Delhi, under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0, Minister Puri declared that this initiative the water sector startups and lead them towards growth "through innovation and design that will drive sustainable economic growth and generate employment opportunities."

ELIGIBILITY:

• All entities are recognised as start-ups by the Department of Promotion of Industry and Internal Trade (DPIIT).
• The start-up must be providing solutions in the aforementioned thematic areas.

#13. Ministry of Skill Development and Entrepreneurship

The task of promoting entrepreneurship was earlier given to different departments and government agencies. In 2014, the Prime Minister decided to dedicate an entire ministry to building this sector as he felt that skill development required greater push from the government's side.

Furthermore, the idea is to reach 500 million people by the year 2022 through gap-funding and skill development initiatives. These schemes include the National Apprenticeship Promotion Scheme (NAPS), MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY), Deendayal Antyodaya Yojana National Rural Livelihoods Mission (DAY-NRLM) / Deendayal Antyodaya Yojana

National Urban Livelihoods Mission (DAY-NULM), Mahatma Gandhi National Employment.

ELIGIBILITY:

• This scheme is available for Indian youth who are: Unemployed or school/college dropouts. Possess an Aadhaar card. Hold a bank account.
  

#14. ATAL Innovation Mission

In the budget session of 2016, the Indian government announced the Atal Innovation Mission (AIM) is a flagship initiative set up by the NITI Aayog; the name coming from Atal Bihari Vajpayee, the former Prime Minister of India.

Atal Innovation Mission was established to create a promotional platform involving academicians and draw upon national and international experiences to foster a culture of innovation, research, and development. The government allocated AIM around INR 150 crores in the year 2015.

AIM's goals include building 10,000 Atal Tinkering Labs (ATLs) and 101 Atal Incubation Centers (AICs), as well as sponsoring 200 businesses through the Atal New India Challenges until March 2023.

ELIGIBILITY:

• Academic Applicants:  a) Universities and colleges affiliated with UGC and AICTE. b) Technical Diploma Colleges and ITIs
• Non-Academic Applicants: Organisations promoting science and technology.

#15. eBiz Portal

eBiz was the first electronic government-to-business(G2B) portal, which was founded in January 2013. The main purpose of the portal was to transform and develop a conducive business environment in the country. eBiz Portal was developed by Infosys in a public-private partnership model. It was designed as a communication centre for investors and business communities in India.

The portal had launched 29+ services in over 5 states of India, viz., Andhra Pradesh, Delhi, Haryana, Maharashtra, and Tamil Nadu. The government also announced that it will add more services to the scheme with time. However, after rounds of talks about the shutting down of the eBiz initiative since July 2018, it was finally shut down on account of low service integration. The government is again planning to revive eBiz-like portals, according to the 2020 updates.

As of March 2023, GeM had over 63,000 government buyer organisations, over 6 crore sellers and service providers offering a wide range of products and services. Currently, government departments, ministries, public sector units, state governments, and central armed police forces are allowed to carry out transactions through this portal.

ELIGIBILITY:

• Sellers who have registered on an e-Commerce portal to sell items online and have a track record of at least six months on any of the main e-Commerce players are eligible for SME eBiz Loan advantages.
  

#16. Dairy Processing and Infrastructure Development Fund (DIDF)

National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India. The Government of India announced the creation of the Dairy Processing and Infrastructure Development Fund under NABARD in the Union Budget of 2017-18 for the sustained benefit of farmers. The total corpus for this fund is INR 8000 crores over a period of 3 years (i.e. 2017-18 to 2019-20)

Milk Unions, multi-state milk cooperatives, state dairy federations, milk-producing companies, and NDDB subsidiaries meeting the eligibility criteria under the project can borrow loans from NABARD. The loan component would be 80% (maximum rate) with the end borrower's contribution at 20 % (minimum rate). Borrowers shall get the loan at an interest rate of 6.5% per annum. The period of repayment will be 10 years. The respective state government will be the guarantor of loan repayment. Moreover, if the borrower is not able to contribute his or her share in the scheme, the state government shall step in.

The departments that come under the agriculture ministry were allocated a total of Rs 1.31 lakh crore in the 2021 Budget, which has been increased to Rs 1.32 lakh crore in the Union Budget of 2022. A fund consisting of blended capital that will be raised under the co-investment model will be facilitated via NABARD, which will finance the agritech startups and rural enterprises that are relevant to farming. The Finance Minister of India, Nirmala Sitharaman further added that the use of ‘Kisan drones’ will see a new encouragement to facilitate effective crop assessment, digitization of land records, and the spraying of insecticides and nutrients.

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#17. Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)

The Department of Electronics and Information Technology (DeiTY) has launched a scheme entitled “Support for International Patent Protection in E&IT (SIP-EIT)”. This scheme provides financial support to MSMEs and Technology Startups for international patent filing.

The SIP-EIT scheme offers several features and benefits to applicants in the Information Communication Technologies and Electronics sector who are seeking financial support for international patent filing.

Under this scheme, a maximum reimbursement limit of INR 15 lakhs per invention or 50% of the total charges incurred in filing and processing a patent application, whichever is lesser, is provided. This can help reduce the financial burden on applicants and encourage innovation in these industries.

Another advantage of the SEP-EIT scheme is that it can be applied at any stage of international patent filing, providing flexibility to the applicant.

ELIGIBILITY:

• The business's investment limit should be met, and the firm should be registered under the Government's Companies Act. To reap the benefits of the scheme, the investment limit in plant and machinery should be met.

#18. Multiplier Grants Scheme (MGS)

Department of Electronics and Information Technology (DeitY) started the Multiplier Grants Scheme (MGS). This scheme aims to encourage collaborative Research & Development (R&D) between industry and academics/institutions for the development of products and packages.

Under the scheme, if the industry supports the R&D of products that can be commercialized at the institutional level, the government shall provide financial support which will be up to twice the amount provided by the industry. MGS promotes and expedites the development of aboriginal products and packages. The government grants would be limited to a maximum amount of INR 2 crores per project and the duration of each project could considerably be less than 2 years. It would be INR 4 crores and 3 years for industry associations.

While the Multiplier Grants Scheme is developed keeping entrepreneurs and start-ups in mind, various business industries can be eligible based on their intentions.

#19. Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE)

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE ) was set up by the government of India and had been put into effect from 1st January 2000 onwards to provide business loans to micro-level businesses, small-scale industries, and startups with zero collateral.

It allows businesses to avail of loans at highly subsidized interest rates without requiring security. By working along with SIDBI (Small Industries Development Bank of India), the government provides a maximum amount of up to INR 100 lakhs under this scheme for boosting new enterprises as well as rehabilitating the existing ones. Primarily meant for manufacturing units, this loan can be availed in the form of working capital or a term loan.

On March 30, 2023, the Credit Guarantee Fund Trust for Micro and Small Businesses (CGTMSE) corpus was injected with a value of Rs. 8,000 crores. The CGTMSE has announced recommendations for lowering the annual guarantee cost for loans up to Rs. 1 crore from a maximum of 2% per year to as low as 0.37% per year.

ELIGIBILITY:

• All MSME borrowers/entities who are stressed viz. SMA2 and NPA accounts are eligible for restructuring (as per RBI guidelines) and are commercially viable as per the assessment of the lending institutions.

#20. Software Technology Park (STP)

The Software Technology Park (STP) of India was set up in 1991 as an autonomous society under the Ministry of Electronics and Information Technology (MeitY). It is a totally export-oriented scheme for the development and export of computer software. This includes the export of professional services using communication links or media.

The scheme is unique in its nature as it focuses on only one sector, i.e., computer software. The scheme integrates the government concept of "100% Export Oriented Units" (EOU), "Export Processing Zones" (EPZ), and the concept of Science Parks or Technology Parks operating elsewhere in the world. The sales in the Domestic Tariff Area (DTA) shall be permissible for up to 50% of the export in value terms. STP gives total depreciation on capital goods over a period of five years.

ELIGIBILITY:

• An Indian company, a foreign company's subsidiary, or a foreign company's branch office are all eligible to become STP units.

#21. The Venture Capital Assistance Scheme (VCA)

Small Farmer’s Agri-Business Consortium (SFAC) has launched the Venture Capital Assistance (VCA) scheme for the welfare of farmer-entrepreneurs and to develop their agri-business.

The scheme is approved by the banks and financial institutions regulated by the RBI. It intends to provide assistance in the form of term loans to farmers so that the latter can meet the capital requirements for their project's implementation. VCA promotes the training and nurturing of agri-entrepreneurs.

The quantum of the loan will be 26% (40% for hilly regions) of the promoter’s equity. The maximum amount of loan provided under this scheme will be INR 50 lakhs. For the North-East region, hill states(Uttarakhand, Jammu and Kashmir)  in all these cases in any part of the country where the project is promoted by a registered farmer producer organisation, the quantum of venture capital are lower than 40% of the promoter's equity, Rs 50.00 lakhs.  In March 2023 Finance Minister Sitharaman launches a fund to encourage agri startups, increases the credit target to 20L cr. In addition to the VCA scheme, there are several other government schemes for startups in India that aim to provide financial assistance, resources, and support to budding entrepreneurs.

ELIGIBILITY:

• Farmers
• Producer Groups
• Partnership/Proprietary Firms
• Self Help Groups
• Companies
• Agripreneurs
• Units in Agri export zones
• Agriculture graduates Individually or in groups for setting up agribusiness projects.

#22. Loan For Rooftop Solar Pv Power Projects

To build reliance on non-conventional sources of power, the government of India has decided to set up 40,000 MWp of Grid-Interactive Rooftop Solar PV Plants in the next five years. These rooftop solar PV plants will be set up in residential, commercial, industrial, and institutional sectors in the country and shall range from 1 kWp to 500 kWp in terms of capacity.

Such rooftop plants are economically viable since they can produce electricity using solar energy at about INR 7 per kWh without any subsidy. The government also provides a subsidy of 15% on these plants to the associations or individual companies, making the scheme even more lucrative.

ELIGIBILITY:

• Existing and Prospective SMEs & Business enterprises have the requirement for installing solar rooftop / ground-mounted projects for captive use.
• CIBIL Score of all Promoters not less than 650.
• Solar systems to be Grid connected.
• Net Metering Arrangement.
• MSME unit should have Udyam Registration Number (URN)

#23. NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)

NewGen IEDC is an initiative launched by the National Science and Technology Entrepreneurship Development Board under the Department of Science and Technology, Government of India. The initiative aims to inculcate the spirit of innovation and entrepreneurship among the Indian youth. It also endeavours to support and encourage entrepreneurship through guidance, mentorship, and support.

NewGen IEDC is a five-year programme that would be implemented in educational institutions. It will support up to 20 new projects. Financial assistance would be provided to the selected institutions for the establishment of NewGen IEDC, including non-recurring (as one-time establishment costs) of up to Rs. 25 lakhs and recurring expenditures (Project Development Cost, Travel, Training, and Contingencies, etc.) of up to Rs. 10 lakhs for five full operational years.

ELIGIBILITY:

• During at least 5 years, the institution must be a University/Deemed University or a renowned Institute/College offering Engineering, Technology, and Science courses at the degree level or above.
• The university must have at least two faculty members educated in entrepreneurship under the DST-sponsored Faculty Development Programme and a minimum of 5000 square feet of dedicated space for housing the NewGen IEDC.
  

#24. Single Point Registration Scheme (SPRS)

The Single Point Registration Scheme (SPRS) was launched in 2003. It is managed by the National Small Industries Corporation (NSIC). NSIC registers all Micro & Small Enterprises (MSEs) in India under the Single Point Registration Scheme to enable them to participate in government purchases.

Enterprises are classified as Micro, Small, or Medium based on the limit of investment. Both Micro and small businesses have varied criteria and registration requirements under SPRS. Micro Businesses - Rs 3000 for up to Rs 100 lakh in revenue. Small Businesses - Rs 5000 for a turnover of up to Rs 100 lakh. Micro Businesses - Rs 3000+ Rs 1500 for every additional Rs 100 lakh in revenue.

ELIGIBILITY:

• Eligible MSME units are provided with a Udyog Aadhar registration certificate. All central ministries, departments, and PSUs shall set an annual goal of a minimum of 20% of the total annual purchases of products produced or rendered by MSMEs. About 358 items are reserved for exclusive purchase from MSMEs.
• All central ministries, departments, and PSUs shall set an annual goal of a minimum of 20% of the total annual purchases of products produced or rendered by MSMEs. About 358 items are reserved for exclusive purchase from MSMEs.
  

#25. Modified Special Incentive Package Scheme (M-SIPS)

M-SIPS was announced in July 2012 by the government of India has approved a special incentive package to promote large-scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector. The scheme is called the Modified Special Incentive Package Scheme (M-SIPS).

Under M-SIPS, the Indian government will provide a subsidy of 20% on capital investments in special economic zones (SEZs) and 25% on capital investments in non-SEZs for individual companies. It also provides the reimbursement of CVD/excise on capital equipment for non-SEZ units. It provides Incentives for a period of 5 years from the date of approval of the application. Reimbursement of central taxes and duties is also provided for high technology and high capital investment units.

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#26. Stand Up India Scheme

Stand-Up India was launched by the government of India on 5 April 2016 for financing SC/ST and/or women entrepreneurs. According to the scheme, bank loans between 10 lakhs to 1 crore can be borrowed by at least one Scheduled Cast (SC) or Scheduled Tribe (ST) borrower and at least one woman per bank brand to set up a greenfield enterprise. The greenfield enterprise may be based out of manufacturing, services or the trading sector. In the case of non-individual enterprises, it is mandatory that an SC/ST or a woman entrepreneur holds at least 51% of the shareholding and controlling stakes.

Achievements (as on March 21, 2023)Rs. 40,710 crore has been sanctioned under Stand Up India Scheme to 180,636 accounts and 33,152 crore has been sanctioned to women under Stand Up Indin Scheme.

ELIGIBILITY:

• SC/ST and/or female entrepreneurs over the age of 18.
• Loans under the initiative are exclusively available for greenfield projects. In this sense, the green field refers to the beneficiary's initial foray into the manufacturing, services, or trading sectors.
• In the event of non-individual firms, either SC/ST or Woman Entrepreneur must own 51% of the shareholding and controlling interest.
• The borrower must not be in arrears with any bank or financial institution.

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#27. ExtraMural Research Funding Scheme

The government of India launched the famous Extramural Research (EMR) funding scheme via SERB to help academic institutions, research laboratories, and other R&D organizations carry out their basic research in all frontier areas of Science and Engineering. Founded just after the establishment of the Science and Engineering Research Council (SERC), this scheme is one of the oldest on the list and still quite a relevant one even after more than four decades of its existence.

This scheme encourages emerging and eminent scientists in the field of science and engineering for an individual-centric competitive mode of research funding. Only the name Extramural Research (EMR) has now been renamed to Core Research Grant (CRG) because the scheme provides core research support to active researchers.

#28. High Risk - High Reward Research

The High Risk and High Reward Research is a scheme launched by the Indian government to support and invite new proposals and ideas that have the potential to usher a paradigm-shifting influence on the Science and Technology domains. This funding focuses on the new proposals, which might be conceptually new and risky but are expected to have a paradigm-shifting influence on the S&T, in terms of formulating new hypotheses or scientific breakthroughs, which might help in the emergence of new technologies.

Typically, financing is granted for three years. In rare situations, as determined by the expert committee, the period might be up to 5 years. This sort of project has no budget constraints. Besides overhead funds, the research grant covers equipment, consumables, contingencies, and travel.

ELIGIBILITY:

• The applicant must be an Indian citizen who resides in India.
• The applicant(s) must be employed in a regular academic/research capacity at a recognised institution.
• Individual investigators or teams of investigators may submit ideas.
• Proposals submitted by a group of scientists must name a Principal Investigator, who will drive the research objectives and oversee the grant administration.
  

#29. IREDA-NCEF Refinance Scheme

The revival of the operations of existing biomass power and other small hydropower projects, which were affected due to unforeseen circumstances, is essential, which is why the government of India decided upon the Refinance Scheme in collaboration with the Indian Renewable Energy Development Agency Ltd. (IREDA) and The National Clean Energy Fund (NCEF).

The scheme aims to revive the operations of the existing biomass power and small hydropower projects by cutting down the cost of funds for these projects and providing refinance at concessional rates of interest, with funds sourced from the National Clean Energy Fund (NCEF).

ELIGIBILITY:

• Apart from overhead grants, renewable energy projects should be operational for a minimum of three years with no materialistic losses.
• For the overall lending institution, the gross non-performing Assets as a proportion of Gross Loans should generally not exceed 5%. This condition parameter excludes state/central PSU banks/government NBFCs/FIs.
• The Capital Adequacy Ratio should be in accordance with the regulatory standards established by the government.
• Under the plan, combustion-based biomass power facilities with an installed capacity of 10 MW are eligible for a loan.
• Small Hydro Power Projects having an installed capacity of 25 MW are eligible for the refinancing of up to Rs.15 crores under the plan.
• The Renewable Energy Units must be active for at least one year.

#30. Dairy Entrepreneurship Development Scheme

The Dairy Entrepreneurship Development Scheme (DEDS) scheme was started in December 2004 with an outlay of Rs. 25 Crore. It is a scheme implemented by the Department of Animal Husbandry, dairying, and fisheries to generate self-employment opportunities in the dairy sector.

These opportunities in the mentioned sector will comprise activities like the enhancement of milk production, procurement, preservation, transportation, processing, and marketing of milk by providing back-ended capital subsidies for bankable projects.

The scheme has been implemented by the National Bank for Agriculture and Rural Development (NABARD).

ELIGIBILITY:

• Farmers, individual businesses, and groups from the unorganised and organised sectors are all eligible for the plan. Self-help groups, dairy cooperative societies, milk unions, milk federations, Panchayati Raj institutions, and other organisations comprise the organised sector.
• An applicant will be eligible for help for all scheme components, but only once for each component.
• The plan can help more than one member of a family if they build up separate units with distinct infrastructures in various areas. The spacing between two such farms should be at least 500 metres.
• Preference will be given to cluster-based projects involving dairy farmers/women in SHGs/Cooperatives/Producer firms.
• Preference will be given to SC/ST/women/landless/small farmers, as well as those in drought.

#31. Drone Shakti

The government of India launched Drone Shakti, as voiced by the Union Finance Minister Nirmala Sitharaman on February 1, 2022. This new initiative is designed to motivate startups to introduce diverse applications for drones, including drones-as-a-service (DaaS). Furthermore, the finance minister also stated that the government would encourage the use of drones by farmers. Sitharaman focused on the farmers' use of these drones to survey the lands and spray insecticides along with digitising land records.

Besides, the government also asserted to stand in full support of the drone technology startup in India. It recently flagged off 100 Kisan Drones in diverse parts of the country to spray pesticides and more. In order to promote made-in-India drones, the government of India banned the import of drones with immediate effect. This however exempts the import of drones for research and development, defence, and security purposes, as per the Ministry of Civil Aviation (MoCA).

The drone manufacturing industry, as estimated by MoCA, is expected to receive an investment of over Rs 5,000 crore over the next 3 years, which will include drones and drone components. The annual turnover of the sales of the drone manufacturing industry, which was valued at Rs 60 crore during FY 2020-21, will shoot over to Rs 900 crore during FY 2023-24. More than one company within a Group of Companies may file separate applications under this PLI scheme and the same shall be evaluated independently.

#32. Zero Defect Zero Effect (ZED) Certification Scheme

The Zero Defect Zero Effect (ZED) scheme was launched on April 28, 2022, by the government of India with a vision of creating proper awareness about ZED manufacturing among the MSMEs and motivating them the assessment of their enterprise for ZED and support them.

ZED can be summed up as an integrated and holistic certification and handholding scheme that extends an opportunity to the Micro, Small and Medium Enterprises (MSMEs) to strive to continuously improve their processes and move up the ZED maturity assessment model.

ELIGIBILITY:

• All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Sustainable (ZED) Certification and avail of related benefits/incentives.
  

#33. Sub-Mission on Agricultural Mechanization (SMAM)

The Sub-Mission on Agricultural Mechanization (SMAM) is a government initiative that was launched by the Government of India in 2014-2015, aiming to increase the reach of farm mechanisation, especially to the small and marginal farmers and in other such areas where the availability of farm power is low. According to the recent updates, as per the reports dated April 2, 2022, the Indian government has announced that it would extend the financial assistance of the full cost of the drones (100%) together with the contingent expenditure under SMAM.

This has already been extended to the Institutions of Indian Council of Agricultural Research, Krishi Vigyan Kendra (KVK), and State Agricultural Universities (SAUs) for its demonstration on the farmer’s fields, as per the statement of Union Minister Narendra Singh Tomar in the Rajya Sabha went on April 1, 2022.

ELIGIBILITY:

• To be eligible for the SMAM Kisan Yojana 2023, you must be a farmer with an annual income of less than 2 lakh (Family Income), and your name must be recorded on both the ration card and the Aadhaar card.

#34. Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)

Credit Linked Capital Subsidy for Technology Upgradation, which is popularly known as the acronym, CLCSS, is a government of India scheme to upgrade technology. It was launched on 1st October, 2013.

Under CLCSS the Indian government provides cash for the Indian companies upfront to upgrade/modernize their equipment or techniques. This scheme mainly empowers Micro and Small Scale Enterprises (MSMEs). In 2023  with this scheme, an eligible MSME can avail of a credit amount ranging from ₹1 lakh to ₹5 crores. Available from both traditional institutional lenders and NBFCs, a business owner can get this MSME loan at a yearly interest rate of 8.50%.

ELIGIBILITY:

• Small and micro-enterprises that belong to -sub-sectors specified by the Ministry of MSME will be deemed eligible for this subsidy scheme.
• Both new and existing enterprises can avail subsidy under this scheme. Small and micro-enterprises based in semi-urban and rural areas with a valid UAM number are also eligible.  

#35. Design Clinic Scheme for Design Expertise

The Design Clinic Scheme for Design Expertise is a scheme declared by the Indian government to support the MSME manufacturing sector of India. As the government deems that design and innovation are critical to the growth of a brand and feels that the MSMEs should develop a design-centric approach to fuel their startups, it aims to infuse design expertise in them.

Under this scheme, the government of India announced to extend around Rs 60,000 for attending design seminars and up to Rs 3.75 lakhs or 75% of the cost that would be needed in conducting the seminar, where the entrepreneurs and their teams can learn about design theories, interact with design veterans, build a network, and put them into practice.        

ELIGIBILITY:

• The unit must be a micro/small/medium enterprise, as defined in the MSMED Act of 2006 or as revised subsequently.
• The Designer in this programme must be chosen from a pool of skilled industrial designers who have been authorised for this programme.

Conclusion

The government is not only promoting these schemes to help the present group of startups benefit from them but also motivating the budding entrepreneurs, startups, and students from all domains, who tend to be independent and lead the vision of Atmanirbhar Bharat forward. These initiatives have been introduced for the development of the Indian startup ecosystem, and they reflect the government's commitment to fostering innovation and entrepreneurship in the country.

With the help of government schemes for startups, the country now seems to be heading towards the golden era of entrepreneurship, where if things go as planned, India may host as many successful startups as the USA or any other leading nation by 2030. The government's support and initiatives for startups in India have created an environment of innovation and growth, and this has encouraged more and more people to pursue their entrepreneurial dreams.

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FAQs

What are the prominent Indian government investment schemes for the startups of the country?

Some of the popular government investment schemes that are benefitting the startup ecosystem of India are:

• SAMRIDH Scheme
• Startup India Seed Fund
• Startup India Initiative
• ASPIRE
• Pradhan Mantri Mudra Yojana (PMMY)
• India Water Pitch-Pilot-Scale Startup Challenge
• Chunauti
• Ministry of Skill Development and Entrepreneurship
• ATAL Innovation Mission
• eBiz Portal
• Dairy Processing and Infrastructure Development Fund (DIDF)
• Support for International Patent Protection in Electronics & Information
• Technology (SIP-EIT)
• Multiplier Grants Scheme (MGS)
• Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE)
• Software Technology Park (STP) Scheme
• The Venture Capital Assistance Scheme (VCA)
• Loan For Rooftop Solar Pv Power Projects
• NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)
• Single Point Registration Scheme
• Modified Special Incentive Package Scheme (M-SIPS)
• Stand Up India Scheme
• High Risk - High Reward Research
• IREDA-NCEF Refinance Scheme
• Dairy Entrepreneurship Development Scheme
• Drone Shakti
• Zero Defect Zero Effect (ZED) Certification Scheme
• Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
• Design Clinic Scheme for Design Expertise

What is the role of startups in Indian economy?

Businesses help a country grow and startups can also be defined as businesses in their very nascent stages. Therefore, if a country nourishes its startup businesses, then they are bound to boost the economy of the whole country only if they are successful. These startups, after considerable growth, will not only help their founders and those associated with the company acquire wealth, but also help the company get a financial boost and drive other businesses, and entrepreneurs to be towards success.

How to start a startup?

If you are a business professional or an individual with dreams of starting up your business and are looking for ideas regarding "how to start a startup?", then here are some basic things you need to focus on:

• Stick with a powerful startup idea
• Gather like-minded people who are experts in their relevant domains
• Put every relevant idea and draw up a foolproof business plan
• Make a revenue model
• Start gathering funds
• Consult legal advice
• Choose a location to set up your headquarters
• Chalk out a marketing plan
• Grow your customer base
• Grow digitally
• Ensure that your business plans are scalable
• Do not discard any unique ideas to pivot

How to protect tech based startup?

Protecting a tech-based startup today is essential as it is important to protect any other startups because losing out on a startup opportunity is simply something that no one wants.  So, here is a list of ideas that will help you secure your tech-based startup:

• Always stay updated
• Make scalable plans for future expansion
• Ensure online security from cybersecurity risks
• Do not share your trade secrets with others
• Ensure reliable office personnel surround you
• Stay connected with a risk management team
• Keep pace with your rivals and competitors
• Do not share the ownership of your IP or your company
• Hire smart and effective individuals only  

What are some MSME schemes for entrepreneurs in India?

Some of the major MSME schemes for entrepreneurs in India include:

• Pradhan Mantri Mudra Yojana
• Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTSME)
• Financial Support to MSMEs in ZED Certification Scheme
• Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
• Design Clinic for Design Expertise to MSMEs
• Udyog Aadhaar Memorandum
• Grievance Monitoring System
• ASPIRE
• Support for International Patent Protection in E&IT (SIP-EIT)
• Single Point Registration Scheme (SPRS)
• Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)