Government Schemes for Startups in India: The Complete 2026 Guide

India now has over 2.12 lakh DPIIT-recognised startups, with more than 55,000 added in FY 2025-26 alone. That number represents the formal recognition side of India’s startup story. What most of those founders do not fully understand is the financial infrastructure the government has quietly built around them.

The Indian government runs over 65 active schemes across 18 central ministries that directly benefit startups, ranging from equity-free grants of ₹20 lakh for building a prototype to collateral-free credit guarantees of up to ₹20 crore for DPIIT-recognised startups, subsidised GPU access for AI companies, dedicated procurement portals that give startups direct access to government buyers, patent filing cost reductions of 80%, and tax exemptions on profits for three consecutive years.

The government is now becoming a First Buyer and Primary Investor in India’s startup ecosystem, and the range of schemes available in 2026 reflects that shift more clearly than any previous year.

This guide covers the most important central government schemes, organised by what stage you are at, what sector you operate in, and what type of support you need. Application portals are linked for each scheme. State-specific schemes are covered in a separate article in this series.

One important practical note before you read: most central schemes require DPIIT recognition as a baseline eligibility condition. If you have not yet registered on the Startup India portal and obtained DPIIT recognition for your startup, that is the first step. Everything else builds on it.

Step Zero: DPIIT Recognition

Before any scheme can be accessed, most founders need to complete this step.

DPIIT recognition is a formal status granted by the Department for Promotion of Industry and Internal Trade to startups that meet specific eligibility criteria. It is free to apply for and unlocks a wide range of benefits across multiple schemes simultaneously.

Who is eligible:

To be eligible, a startup must be registered as a Private Limited Company, LLP, or Partnership. It must be less than 10 years old. It must have an annual turnover of less than ₹100 crore. It must work on innovation or improvement of products or services.

What recognition unlocks:

Once recognised, your startup gets access to three years of income tax exemption on profits, an 80% reduction in patent filing fees, self-certification under six labour laws and three environmental laws, faster exit within 90 days under the Insolvency and Bankruptcy Code, and eligibility for all DPIIT-specific funding schemes covered in this guide.

How to apply: Visit startupindia.gov.in, create an account, fill in your startup details, and upload incorporation documents and a brief description of your innovation. Approval typically takes 2 to 7 working days.

Official portal: https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition.html

Part A: Funding Schemes – Grants and Equity Investment

1. Startup India Seed Fund Scheme (SISFS)

Nodal ministry: DPIIT, Ministry of Commerce and Industry
Stage: Idea to early-stage (pre-revenue or early revenue)

What it is: SISFS supports startups that are still in the early product-building stage. It helps founders fund prototypes and initial market testing through approved incubators. Over ₹605 crore has been approved for more than 3,400 startups under this programme.

What you get: Up to ₹20 lakh as grant for validation of proof of concept, prototype development, or product trials. Up to ₹50 lakh as investment for market entry, commercialisation, and scaling through convertible debentures or debt-linked instruments.

Eligibility: DPIIT-recognised startup. Not more than 2 years old at the time of application. Must not have received more than ₹10 lakh in prior government funding. Must be working on a product or service with a clear innovation element.

How to apply: You do not apply directly to DPIIT. You apply through an SISFS-approved incubator. A list of all approved incubators is available on the Startup India portal. Once shortlisted, you pitch to the incubator’s seed management committee. Funding is milestone-based.

Official portal: https://seedfund.startupindia.gov.in/

2. Fund of Funds for Startups (FFS) – Now FFS 2.0

Nodal ministry: DPIIT / SIDBI
Stage: Early to growth stage

What it is: FFS 1.0 (2016-2025) committed ₹10,000 crore to 145 AIFs, mobilising over ₹25,500 crore into 1,370+ startups. For every ₹1 committed by FFS, the recipient AIF must invest at least ₹2 into startups — a 2x multiplier mandate that makes FFS impactful beyond its headline corpus.

The Startup India Fund of Funds 2.0 was launched on April 13, 2026 with a ₹10,000 crore corpus to provide venture capital support, with enhanced focus on deep tech, AI, clean energy, and manufacturing startups.

What you get: Venture capital investment from FFS-empanelled AIFs, typically ranging from ₹25 lakh to several crore depending on the fund’s mandate and stage focus.

Eligibility: Startups cannot apply to FFS directly. You must pitch to and receive investment from a SEBI-registered AIF that is empanelled under the FFS scheme. DPIIT recognition is strongly preferred by most FFS-backed AIFs.

Practical approach: Identify FFS-empanelled AIFs in your sector through the SIDBI portal, prepare a strong pitch deck, and go through their standard fundraising process.

Official portal: https://www.sidbi.in/en/our-businesses/venture-capital-fund-for-startups

3. Credit Guarantee Scheme for Startups (CGSS)

Nodal ministry: DPIIT
Stage: Growth and scaling

What it is: CGSS is specifically designed for DPIIT-recognised startups seeking larger debt from scheduled commercial banks and NBFCs, without being required to provide collateral or personal guarantees.

What you get: CGSS guarantees loans up to ₹20 crore for DPIIT-recognised startups, covering 75% to 85% of the loan amount. The Annual Guarantee Fee starts from 0.37% per annum as per the revised structure effective April 2025. This means a startup can borrow up to ₹20 crore from a bank without pledging personal assets.

Eligibility: DPIIT-recognised startup. Strong business plan demonstrating repayment capability. Application through an empanelled Member Lending Institution.

Official portal: https://www.startupindia.gov.in/content/sih/en/investorsPage/credit-guarantee-scheme-for-startups.html

4. SAMRIDH Scheme (MeitY)

Nodal ministry: Ministry of Electronics and Information Technology (MeitY)
Stage: Growth and scaling (post-prototype, pre-Series A)

What it is: The SAMRIDH scheme helps startups which already have a proof of concept enhance their product using innovative technologies and obtain investments from venture capitalists and angel investors. The scheme aims to help at least 300 startups bring together the necessary skill sets and provide them with investor and customer connections, and facilitate overseas expansion.

What you get: Up to ₹40 lakh in equity-based investment matching, investor connections, market access support, and mentorship from technology experts. Access to pilot projects with corporate partners and government entities.

Eligibility: Tech startup with a working product or proof of concept. Must not have raised more than ₹5 crore in prior funding. Applications go through MeitY-empanelled accelerators.

Official portal: https://www.meity.gov.in/content/samridh-scheme

5. BIRAC BIG (Biotechnology Industry Research Assistance Council)

Nodal ministry: Department of Biotechnology (DBT)
Stage: Idea to early prototype (biotech and life sciences specific)

What it is: BIRAC BIG – Biotechnology Ignition Grant is the primary non-dilutive grant programme for early-stage biotech startups and innovators in India.

What you get: Up to ₹50 lakh as a grant for proof-of-concept development, prototype building, and early validation in biotech, healthcare, agri-biotech, and related life science sectors. The grant is completely non-dilutive, no equity is taken.

Eligibility: Indian biotech startups, researchers, or individuals with a biotech innovation. Must have a clear proof-of-concept plan. Educational institutions and research labs can also apply for BIG grants on behalf of researchers.

How to apply: Applications are submitted through the BIRAC online portal. Proposals go through a scientific review committee. Funding is milestone-linked.

Official portal: https://birac.nic.in/big.php

Part B: Credit and Loan Schemes – Collateral-Free Capital

6. Pradhan Mantri Mudra Yojana (PMMY)

Nodal ministry: Ministry of Finance / MUDRA
Stage: Early stage, micro and small businesses

What it is: MUDRA is the most accessible government funding scheme for early-stage businesses and does not require DPIIT recognition, making it available to sole proprietorships, partnerships, and micro-enterprises alongside companies and LLPs.

What you get: MUDRA Yojana offers collateral-free loans in four categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and the new Tarun Plus (₹10 lakh to ₹20 lakh for repeat successful borrowers). Interest rates start from approximately 8.5% per annum.

Eligibility: Any non-farm, non-corporate income-generating business. No collateral required. No DPIIT recognition required. Applicant must not be a bank defaulter.

How to apply: Walk into any scheduled commercial bank, NBFC, or microfinance institution with your business plan. Alternatively, apply online through the JanSamarth portal.

Official portal: https://www.jansamarth.in/

7. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Nodal ministry: Ministry of MSME / SIDBI
Stage: Early to growth stage

What it is: CGTMSE is the government’s flagship mechanism for collateral-free MSME credit, guaranteeing loans up to ₹10 crore for standard micro and small enterprises. For DPIIT-recognised startups, the enhanced CGSS (covered above) goes up to ₹20 crore.

What you get: CGTMSE provides a guarantee cover of 75% to 85% of the loan amount to your bank, enabling the bank to lend without demanding personal assets as collateral. You still repay the full loan — the guarantee protects the lender, not the borrower, from default.

Eligibility: Must have Udyam Registration Certificate. Applying through a Member Lending Institution (bank or NBFC). Valid for manufacturing and service enterprises.

How to apply: CGTMSE does not have a separate application portal. Approach an empanelled bank with your business plan and Udyam Registration. The bank applies for the CGTMSE guarantee on your behalf.

Official portal: https://www.cgtmse.in/

8. Stand-Up India Scheme

Nodal ministry: Ministry of Finance
Stage: First-time entrepreneurs, greenfield ventures

What it is: Stand-Up India specifically targets women entrepreneurs and SC/ST entrepreneurs starting their first business, providing composite loans that cover both capital expenditure and working capital needs.

What you get: Loans from ₹10 lakh to ₹1 crore, enhanced to ₹2 crore for select categories in Budget 2025-26, for women entrepreneurs and SC/ST entrepreneurs. The loan has a 7-year repayment tenure with an 18-month moratorium period. No mandatory collateral covered under the Credit Guarantee Fund Scheme for Stand-Up India.

Eligibility: Women entrepreneurs (any category) or SC/ST entrepreneurs. Starting a greenfield enterprise (first-time venture). Must hold at least 51% equity in the enterprise. Minimum age of 18 years.

How to apply: Apply through any scheduled commercial bank branch or online at standupmitra.in. You need identity proof, address proof, caste certificate for SC/ST applicants, a business plan or project report, and bank statements.

Official portal: https://www.standupmitra.in/

Part C: Technology and Innovation Schemes

9. Atal Innovation Mission 2.0 (AIM)

Nodal ministry: NITI Aayog
Stage: Student innovators to early-stage deep tech startups

What it is: The Union Cabinet approved the continuation of AIM with an enhanced scope and an allocated budget of ₹2,750 crore for the period till March 31, 2028. AIM 2.0 is designed to strengthen India’s innovation and entrepreneurship ecosystem by increasing input and improving the quality of output.

AIM operates through three primary programmes. Atal Tinkering Labs (ATLs) are innovation workspaces in schools. Atal Incubation Centres (AICs) are full-scale business incubators at university and research institution campuses. Atal Community Innovation Centres (ACICs) serve Tier-2 and Tier-3 cities.

What you get: For AICs: Up to ₹10 crore in grant funding to establish and operate a business incubator. If your startup is based at an AIM-supported incubator, you benefit from the infrastructure, mentorship, and seed funding made available to that incubator’s cohort.

How to apply: Apply through the AIM portal for incubator grants. For startup support, approach your nearest Atal Incubation Centre.

Official portal: https://aim.gov.in/

10. TIDE 2.0 (Technology Incubation and Development of Entrepreneurs)

Nodal ministry: Ministry of Electronics and Information Technology (MeitY)
Stage: Early-stage tech startups in ICT, AI, IoT, Blockchain, and Robotics

What it is: TIDE 2.0 promotes tech entrepreneurship through financial and technical support to incubators engaged in supporting ICT startups primarily in emerging technologies such as IoT, AI, blockchain, and Robotics. The scheme is implemented through 51 incubators at institutes of higher learning and premier R&D organisations.

What you get: EIR (Entrepreneur-in-Residence) stipend of up to ₹7 lakh over 12 months for pre-incubation stage innovators. Prototype funding of up to ₹30 lakh per startup for prototype development and market validation. Mentorship and lab access including computing infrastructure, testing facilities, and industry mentor network access. AI startups working on natural language processing, computer vision, reinforcement learning, edge AI, and generative AI applications are all eligible. IncorpX

How to apply: Applications are routed through the nearest TIDE 2.0 Centre of Entrepreneurship. The list of active centres is available on the meity.gov.in website.

Official portal: https://www.meity.gov.in/tide2.0

11. NIDHI Programme (National Initiative for Developing and Harnessing Innovations)

Nodal ministry: Department of Science and Technology (DST)
Stage: Idea to prototype

What it is: NIDHI is DST’s umbrella programme to nurture deep tech and science-based innovations from laboratory to market. It operates through several sub-programmes including NIDHI-PRAYAS (prototype development grants), NIDHI-SSP (Student Start-up Policy), NIDHI-TBI (Technology Business Incubators), and NIDHI-EIR (Entrepreneur in Residence).

What you get: NIDHI-PRAYAS provides up to ₹10 lakh per innovator for prototype development through DST-supported PRAYAS centres equipped with equipment for rapid prototyping. NIDHI-EIR provides a stipend for entrepreneurs researching or developing a business idea full-time. NIDHI-TBI provides institutional grants to host incubators at academic institutes.

Eligibility: NIDHI-SSP requires at least 3 months of prior incubation at a Technology Business Incubator. NIDHI-PRAYAS is open to any innovator or startup with an early-stage tech idea.

Official portal: https://nidhi.dst.gov.in/

12. iDEX – Innovations for Defence Excellence

Nodal ministry: Ministry of Defence
Stage: Prototype to scaling (defence and aerospace tech)

What it is: iDEX is the Government of India’s primary mechanism for engaging private startups and innovators in developing technology solutions for the Indian Armed Forces.

What you get: Under iDEX DISC (Defence India Startup Challenge), selected startups receive grants of up to ₹1.5 crore under the standard track and up to ₹10 crore under the iDEX Prime track, alongside direct engagement with the military as a pilot customer. The iDEX ADITI programme (Acing Development of Innovative Technologies with iDEX) funds deep tech startups working on critical defence technologies with grants up to ₹25 crore.

Eligibility: Indian-incorporated startups, MSMEs, or innovators with a defence or aerospace technology solution. DPIIT recognition preferred but not mandatory for all tracks.

Official portal: https://idex.gov.in/

Part D: Market Access and Procurement Schemes

13. GeM Startup Runway

Nodal ministry: Ministry of Commerce (GeM)
Stage: Revenue-stage startups

What it is: The Government e-Marketplace is India’s public procurement portal where central and state government bodies buy goods and services. GeM’s Startup Runway provides direct access to government procurement, offering instant revenue streams for startups that have been selling products or services.

What you get: Direct access to government buyers across all central ministries, state governments, PSUs, and public sector organisations. No EMD (Earnest Money Deposit) required for DPIIT-recognised startups. Startups can list innovative products without the standard price comparison requirements that apply to established suppliers.

Why this matters: Government procurement in India is worth over ₹3 lakh crore annually. A startup that wins even a small government contract can establish the revenue track record and reference customer credentials that private sector clients use as a purchasing signal.

How to apply: Register on GeM as a seller at gem.gov.in. Obtain DPIIT recognition first to access the Startup Runway track with relaxed requirements.

Official portal: https://gem.gov.in/

Part E: Sector-Specific Schemes Worth Knowing

14. RKVY-RAFTAAR (Agritech)

Nodal ministry: Ministry of Agriculture and Farmers’ Welfare
Stage: Idea to early revenue (Agritech specific)

What it is: Rashtriya Krishi Vikas Yojana, Remunerative Approaches for Agriculture and Allied sector Rejuvenation runs an agritech startup programme with dedicated grants and incubation support.

What you get: Pre-incubation support of up to ₹5 lakh for ideas. Incubation support of up to ₹25 lakh for startups in the agritech, food tech, rural tech, and allied sectors. Access to Agri-Business Incubators (R-ABIs) across India.

Official portal: https://rkvy.nic.in/

15. IndiaAI Mission (AI and Deep Tech)

Nodal ministry: MeitY / IndiaAI
Stage: AI and deep tech startups at any stage

What it is: The IndiaAI Mission is India’s national AI infrastructure programme with a corpus of ₹10,000 crore. For startups, the most immediately relevant benefit is subsidised access to high-performance GPU compute for AI model training and inference.

What you get: Deep tech startups currently spending ₹5 to ₹20 lakh per month on commercial cloud compute for model training can reduce costs significantly. The IndiaAI Mission offers subsidised access to GPU clusters through empanelled cloud service providers at ₹65 per GPU-hour against a market rate of ₹210 to 250.

Official portal: https://indiaai.gov.in/

16. Antariksh Venture Capital Fund (Space Tech)

Nodal ministry: IN-SPACe (Indian National Space Promotion and Authorisation Centre)
Stage: Early to growth stage (space tech specific)

What it is: India’s dedicated venture fund for private space technology startups, supporting the growing ecosystem of launch vehicle, satellite, and space application companies.

What you get:
Venture capital investment from the Antariksh VCF managed through IN-SPACe, alongside access to ISRO facilities and expertise, regulatory clearances for satellite launches, and connections to global space agency partnerships.

Official portal: https://www.inspace.gov.in/

Part F: Tax and Compliance Benefits for DPIIT-Recognised Startups

These are not separate schemes requiring application — they activate automatically upon DPIIT recognition. They are included here because their aggregate financial value often exceeds what startups receive from grant schemes.

Income Tax Exemption (Section 80-IAC): Eligible DPIIT-recognised startups can claim a 100% deduction on profits for any three consecutive years out of the first ten years of operation. The startup must have been incorporated after April 1, 2016. Apply through the Income Tax portal after obtaining DPIIT recognition.

Angel Tax Exemption: DPIIT-recognised startups are exempt from Section 56(2)(viib) of the Income Tax Act, which used to tax the difference between the issue price of shares and their fair market value as income. This exemption removes a significant compliance burden from early-stage fundraising.

Patent Fee Reduction: DPIIT-recognised startups receive an 80% reduction in patent filing fees and expedited examination. This is one of the most underutilised benefits in the ecosystem — a patent that costs ₹1,60,000 for a large company costs ₹32,000 for a recognised startup.

Self-Certification Under Labour Laws: DPIIT-recognised startups can self-certify compliance under six labour laws including the Industrial Disputes Act, the Industrial Employment Act, the Inter-State Migrant Workmen Act, the Payment of Gratuity Act, the Contract Labour Act, and the Employees Provident Funds Act, for a period of five years from incorporation.

Faster Exit: Under the Insolvency and Bankruptcy Code, DPIIT-recognised startups can be wound up within 90 days, compared to the standard process that can take years.

How to Stack Multiple Schemes

Most founders approach government schemes one at a time, applying for whichever one they hear about first. The correct approach is to stack schemes at different stages, since most central schemes are non-exclusive.

A typical combination for an early-stage tech startup: DPIIT recognition (tax benefits) + MSME registration (priority lending) + CGTMSE guarantee (collateral-free bank loan) + SISFS (grant for prototype). The only restriction is SISFS’s ₹10 lakh cap on prior government funding received. IncorpX

For a biotech startup, the right stack would be BIRAC BIG (prototype grant up to ₹50 lakh) + DPIIT recognition (patent fee reduction + tax benefits) + NIDHI-PRAYAS (equipment and testing access) + GeM registration (government sales channel).

For a defence tech startup: iDEX DISC (up to ₹1.5 crore grant + military pilot) + DPIIT recognition + CGSS (up to ₹20 crore collateral-free credit for scaling) + GeM Startup Runway (government procurement access).

For an AI startup: IndiaAI Mission GPU subsidies (immediate cost reduction) + TIDE 2.0 (prototype funding up to ₹30 lakh) + SAMRIDH (growth stage investor connections) + Fund of Funds 2.0 (VC investment through empanelled AIFs).

What to Do Right Now

If you are a startup founder reading this and have not yet taken any action on government schemes, here is the priority order.

First, get DPIIT recognition if you have not already. It is free, takes less than a week, and is the master key that unlocks almost every other benefit in this guide. Apply at startupindia.gov.in.

Second, get Udyam MSME registration if your startup qualifies. This is separate from DPIIT recognition and unlocks a different set of banking and credit benefits including CGTMSE coverage and priority sector lending status.

Third, identify which funding scheme matches your current stage. If you are pre-revenue and building a prototype, SISFS and BIRAC BIG are the right starting points. If you have a working product and need growth capital, SAMRIDH and FFS 2.0 are more appropriate. If you need credit without collateral, CGTMSE or CGSS is the route.

Fourth, register on GeM. Even if you are not selling to government customers today, having a GeM seller account costs nothing and opens a procurement channel that generates revenue without sales cycles.

Fifth, stack schemes deliberately. Check the eligibility conditions for two or three schemes that are relevant to your stage and sector, and apply to them simultaneously. Most are not mutually exclusive.