Top 10 Schemes for Startups You Shouldn't Miss in 2025

The Government of India has introduced a range of structured schemes to empower startups and drive sustainable economic growth. These initiatives aim to generate employment, reduce poverty, and create a robust ecosystem that supports entrepreneurship. By offering financial aid, regulatory relief, and infrastructure support, the government ensures that emerging businesses can scale with confidence. In this article, we explore the top 10 government-backed schemes designed to fuel startup growth across the country.

What is a Startup?

A startup is a newly formed business entity established to create innovative products or services and achieve rapid growth. Typically founded by one or more entrepreneurs, a startup operates with a vision to solve real-world problems through new and scalable solutions. In its early stages, a startup often faces high operational costs and limited revenue, which makes external support crucial. Startups focus on innovation, adaptability, and market relevance to build sustainable business models. Eligibility for government support schemes differs across programs and depends on specific criteria such as company age, turnover, and DPIIT recognition status.

10 Schemes for Startup India

The top 10 schemes for startups are as follows:

1. Startup India Scheme

The Startup India Initiative, launched on 16th January 2016, is a government-led program designed to build a robust and inclusive startup ecosystem. Spearheaded by the Department for Promotion of Industry and Internal Trade (DPIIT), the initiative aims to nurture innovation, ease regulatory pressure, and promote entrepreneurship across the country.

This initiative provides official recognition to startups and extends several structural and financial benefits, making it easier for new ventures to grow and compete.

Key Benefits of the Startup India Initiative:

• Self-Certification Compliance: Recognised startups can self-certify under select labour and environmental laws, reducing regulatory overhead.
• Patent Fee Rebate: Startups receive an 80% rebate on patent application fees, along with access to fast-track processing.
• Income Tax Exemption: Eligible startups enjoy a three-year tax holiday within the first ten years of incorporation under Section 80-IAC.
• Simplified Exit Process: Startups with simple debt structures can be wound up within 90 days under the Insolvency and Bankruptcy Code.
• Government Procurement Access: DPIIT-recognised startups can list and sell products directly to government bodies through the Government e-Marketplace (GeM).
• Fast-Track Patent Examination: Startups benefit from expedited patent examination processes to protect their intellectual property efficiently.
• Tax Exemption on Investment: Exemption under Section 56 of the Income Tax Act allows relief from angel tax on investments received.

Through these structured incentives, the Startup India Initiative acts as a foundational support system for early-stage ventures and high-potential entrepreneurs.

2. Startup India Seed Fund Scheme (SISFS)

The Startup India Seed Fund Scheme (SISFS) is an initiative launched by the Government of India to strengthen innovation and support early-stage startups. Managed by the Department for Promotion of Industry and Internal Trade (DPIIT), the scheme addresses the critical need for seed funding during the initial phases of business development.

Early-stage startups often struggle to secure capital from banks or private investors due to the absence of a market-tested product. SISFS provides structured financial assistance to help them build prototypes, validate ideas, and prepare for commercial launch.

Key Features of the Startup India Seed Fund Scheme

• Budget Allocation

The scheme is backed by a total budget of Rs 945 crore, sanctioned by the Government of India. This funding is strategically allocated to ensure wide-scale impact and reach across the startup ecosystem over a defined period.

• Implementation Timeline

The scheme is designed to operate for four years. Within this timeframe, the initiative aims to address the early-stage capital gap faced by startups and enable the timely execution of innovative ideas.

• Startup Coverage

The program targets support for approximately 3,600 startups. These startups will be assisted through a nationwide network of 300 accredited incubators that evaluate, mentor, and fund eligible ventures based on their potential.

• Seed Grant for Early-Stage Development

Eligible startups can receive up to Rs 20 lakh as a non-repayable grant. This funding is specifically meant for proof of concept validation, prototype building, and product trials—essential stages in the business development cycle.

• Market-Entry Capital Support

In addition to grants, startups can access up to Rs 50 lakh through convertible debentures or debt-linked instruments. This financial assistance helps facilitate product launch, commercialisation, and scaling in competitive markets.

• Incubator-Based Implementation Model

The scheme is implemented through DPIIT-approved incubators that play a central role in application screening, fund disbursement, and ongoing mentoring. This decentralised model ensures transparency, speed, and region-wide accessibility.

3. Credit Guarantee Scheme for Startups (CGSS)

The Credit Guarantee Scheme for Startups (CGSS) is a government initiative launched to improve credit access for DPIIT-recognised startups. It provides collateral-free credit guarantees on loans offered by approved financial institutions, allowing startups to secure funding without mortgaging assets.

This scheme is implemented through the Credit Guarantee Fund Trust for Startups, which extends credit guarantees to:

• Scheduled Commercial Banks
• Non-Banking Financial Companies (NBFCs)
• Venture Debt Funds (VDFs) under SEBI-registered Alternative Investment Funds (AIFs)

Under this scheme, the trust acts as a guarantor to these lending institutions, referred to as Member Lending Institutions (MLIs). If a startup defaults on repayment, the trust covers a predefined percentage of the loss, reducing the risk for lenders.

By backing eligible loans with sovereign guarantees, CGSS enables startups to access formal credit with greater ease, helping them meet working capital needs, invest in expansion, and scale operations efficiently.

4. ATAL Innovation Mission (AIM)

The Atal Innovation Mission (AIM) is a flagship initiative by the Government of India to promote innovation and entrepreneurship across sectors. It develops programs, policies, and partnerships that strengthen the startup ecosystem.

AIM supports educational institutions, corporations, and startups through innovation infrastructure, R&D, and early-stage incubation. It acts as a central platform to drive problem-solving, scalable solutions, and inclusive economic growth through its nationwide sub-programs.

5. Software Technology Parks of India (STPI)

The Software Technology Parks of India (STPI), established in 1991 under the Ministry of Electronics and IT (MeitY), promotes innovation and supports startups in emerging technologies such as AI, ML, IoT, Blockchain, Robotics, and Computer Vision.

It provides early-stage tech startups with infrastructure, mentoring, and access to markets through incubation and acceleration programs. STPI has launched 22 Centres of Entrepreneurship and built a network of 63 centres across India, fostering regional innovation and digital growth in tier-II and tier-III cities.

6. Pradhan Mantri Mudra Yojana (PMMY)

Launched on April 8, 2015, the Pradhan Mantri Mudra Yojana (PMMY) provides collateral-free loans of up to Rs 20 lakh to individuals running non-corporate, non-agricultural small enterprises.

These loans, known as MUDRA loans, are offered through:

• Commercial Banks
• RRBs, Small Finance Banks
• MFIs, NBFCs

PMMY supports micro units involved in manufacturing, services, or trading. It enables small businesses to access formal credit without security requirements, promoting self-employment and financial inclusion.

7. Stand-Up India Scheme

The Stand-Up India Scheme, introduced by the Department of Financial Services, facilitates bank loans to Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs. It specifically supports the establishment of Greenfield enterprises in manufacturing, services, or trading sectors. The scheme aims to bridge the credit gap for first-time business owners from underrepresented groups by providing financial and developmental assistance through a formal banking network.

Key Features of the Stand-Up India Scheme

• Loan Coverage: Eligible applicants can avail loans ranging from Rs 10 lakh to Rs 1 crore for setting up new businesses in approved sectors.
• Target Beneficiaries: Each branch of scheduled commercial banks must provide one loan to an SC/ST entrepreneur and one to a woman entrepreneur.
• Repayment Terms: The scheme offers a flexible repayment period of up to seven years, with a moratorium of up to eighteen months.
• Credit Guarantee Support: Loans under this scheme are backed by the Credit Guarantee Fund, reducing the requirement for collateral.
• Support Ecosystem: SIDBI and associated agencies assist with project planning, documentation, and business training to ensure smooth implementation.

8. Multiplier Grants Scheme (MGS)

The Multiplier Grants Scheme (MGS), launched by the Department of Electronics and Information Technology, aims to promote joint R&D collaborations between industry and academic or research institutions.

Under this scheme, if an industry funds R&D for product or service development, the government provides matching support, up to twice the industry's contribution. To avail of funding, both the industry and the R&D institution must submit a joint proposal.

MGS helps accelerate Indigenous innovation by supporting the development of commercially viable technologies through public-private partnerships.

9. Market Access Initiative (MAI) Scheme

The Market Access Initiative (MAI) Scheme, launched by the Ministry of Commerce & Industry, supports Indian businesses in expanding to global markets. It focuses on export promotion by funding strategic market development activities, enabling startups to enhance their international presence and competitiveness.

Key Features of the MAI Scheme

Export Promotion Support: Provides financial assistance for international trade fairs, B2B exhibitions, and overseas buyer-seller meets.

Brand Building: Supports branding, labelling, and packaging improvements to meet global standards and enhance market appeal.

Marketing Campaigns: Funds sector-specific publicity campaigns and digital marketing to strengthen visibility in targeted countries.

Eligible Participants: Open to export promotion councils, trade bodies, and eligible Indian startups with export potential.

Strategic Relevance: Helps startups prepare for export-readiness by offering visibility, compliance alignment, and entry to international markets.

10. The Patent and IPR Scheme

1. Fast-Track Patent Examination: Startups recognized by DPIIT are eligible for expedited processing of their patent applications, reducing waiting time significantly.
2. 80% Rebate on Patent Filing Fees: Startups receive up to 80% discount on patent application fees, helping reduce the cost burden of innovation.
3. 50% Rebate on Trademark Filing Fees: They are also eligible for a 50% discount on trademark filing, encouraging brand protection.
4. IP Facilitators: The government has appointed IPR facilitators across India to assist startups in filing patents, trademarks, and designs. Their professional fees are fully borne by the government.
5. Legal Support and Guidance: Startups receive guidance on IP protection and commercialization, including awareness workshops and legal aid.
6. Simplified Process: A dedicated Startup Intellectual Property Protection (SIPP) scheme ensures a smooth and simplified process for filing and managing IP rights.

Conclusion

The Startup India Scheme, launched by the Government of India and driven by DPIIT, plays a central role in shaping the country’s startup ecosystem. Along with other government initiatives, it promotes innovation, supports entrepreneurship, and accelerates economic growth.

Each scheme addresses a specific challenge—whether it’s access to funding, infrastructure, or skill development—and contributes to building a robust and sustainable startup environment. These efforts collectively enhance job creation, strengthen rural and urban enterprise networks, and position India as a global hub for innovation.

To explore how these schemes can benefit your business journey, connect with the experts at Online Legal India for complete guidance and compliance support.