Government startup schemes

10 central government schemes, verified. State-level schemes (Maharashtra, Karnataka, Telangana, Rajasthan, etc.) vary significantly — check your State Startup Policy or State DPIIT nodal agency.

• DPIIT Startup India Recognition

  all-stagesMust-have

  DPIIT, Ministry of Commerce

  Recognised Startup status that unlocks all other central schemes, IPR fast-track fee rebates, self-certification under 9 labour and 3 environment laws, and 90-day fast-track insolvency.

  Eligibility

  • ·Private limited company, LLP, registered partnership firm or OPC
  • ·Incorporated or registered ≤10 years before the date of application
  • ·Annual turnover has not exceeded ₹100 Cr in any financial year since incorporation
  • ·Working on innovation, development or improvement of products/services/processes OR has a scalable business model with high potential

  Key benefit: Gateway to 80-IAC tax holiday, SISFS seed funding, CGSS guarantees, and self-certification exemptions

  Official source →

  Apply at: startupindia.gov.in — DIPP account → Recognition application

• Section 80-IAC Tax Holiday

  Profitable-stageDPIIT required

  CBDT / Income Tax (via DPIIT certification)

  100% deduction on profits and gains from an eligible business for any 3 consecutive assessment years out of 10 years from the year of incorporation.

  Eligibility

  • ·Incorporated between 1 April 2016 and 1 April 2030 (as extended by Finance Act 2024)
  • ·DPIIT recognised startup (private limited company or LLP)
  • ·Company or LLP — not a partnership firm
  • ·Certified as innovative by DPIIT or an Inter-Ministerial Board (IMB)

  Key benefit: Zero tax on startup profits for 3 years — applies only if the company is actually profitable in those years

  Official source →

  Apply at: startupindia.gov.in → Tax exemption application (after DPIIT recognition)

• Startup India Seed Fund Scheme (SISFS)

  Early stageDPIIT requiredNon-dilutive

  DPIIT (₹945 Cr corpus, disbursed via approved incubators)

  Grants up to ₹20 L for proof-of-concept, prototype development, product trials, and market entry. Debt/convertible debentures up to ₹50 L for market entry and commercialisation.

  Eligibility

  • ·DPIIT recognised startup
  • ·Startup ≤2 years from date of incorporation at the time of application to incubator
  • ·Not have received more than ₹10 L under any other central/state government scheme
  • ·Promoters must not be defaulters under any bank/FI loan

  Key benefit: Non-dilutive grant for PoC and early prototype — no equity given up

  Official source →

  Apply at: startupindia.gov.in → Startup Seed Fund → apply through an DPIIT-approved incubator

• Credit Guarantee Scheme for Startups (CGSS)

  Seed → GrowthDebt / loanDPIIT required

  NCGTC (National Credit Guarantee Trustee Company) / DPIIT

  Collateral-free credit guarantee covering up to 80% of loan amount (up to ₹10 Cr) from scheduled commercial banks, NBFCs-MFIs, or SEBI-registered AIFs.

  Eligibility

  • ·DPIIT recognised startup
  • ·Loan from a member lending institution (scheduled commercial bank or NBFC or eligible AIF)
  • ·Working capital or term loan for business purposes — not for personal use

  Key benefit: Borrow without pledging assets — founders don't have to give personal guarantees

  Official source →

  Apply at: Via member lending institution — they apply to NCGTC on your behalf

• Fund of Funds for Startups (FFS)

  VC stageIndirectDPIIT required

  DPIIT / SIDBI (₹10,000 Cr corpus)

  SIDBI invests in SEBI-registered AIFs (Category I and II) which in turn invest in startups. Startups benefit indirectly — through VC/AIF investment rounds backed by FFS money.

  Eligibility

  • ·DPIIT recognised startup
  • ·Startup must be investable by a SIDBI-supported AIF (startup itself does not apply directly)

  Key benefit: Multiplier effect — FFS capital flowing through 100+ AIFs to startups at Seed through pre-IPO stages

  Official source →

  Apply at: No direct application — raise from an FFS-supported AIF. List at startupindia.gov.in → FFS

• GeM Startup Runway

  Govt procurementGrowth stageDPIIT required

  Government e-Marketplace (GeM), Ministry of Commerce

  Procurement access to central government ministries, departments, and CPSEs without the standard prior turnover or experience thresholds that block early-stage companies from government tenders.

  Eligibility

  • ·DPIIT recognised startup registered on GeM
  • ·Product or service must fit a GeM product category
  • ·Standard GeM seller compliance (PAN, GST, bank account) still applies

  Key benefit: ₹2 Lakh Cr+ procurement market open to startups that would otherwise fail the ₹X Cr turnover filter in normal tenders

  Official source →

  Apply at: gem.gov.in → Seller registration → Startup category

• TIDE 2.0

  Deep-techICT / AIGrantEarly stage

  Ministry of Electronics and IT (MeitY)

  Support for ICT, AI/ML, IoT, and deep-tech startups through 51 Technology Business Incubators (TBIs). Grants up to ₹75 L per startup via the TBI; mentoring, lab access, and market connect included.

  Eligibility

  • ·Technology startup working in ICT, AI, ML, IoT, blockchain, cybersecurity, or related domain
  • ·Selected by a MeitY-approved TBI (each TBI runs its own intake cohort)

  Key benefit: Non-dilutive grant + physical lab access — ideal for deep-tech and hardware startups

  Official source →

  Apply at: meity.gov.in → Tide 2.0 → Find an approved TBI and apply to their cohort

• iDEX (Innovations for Defence Excellence)

  DefencedeeptechGovt procurementGrant

  Ministry of Defence / DRDO (Defence Innovation Organisation)

  Grants up to ₹1.5 Cr (extendable to ₹10 Cr under iDEX Prime) for startups and MSMEs solving specific defence and aerospace problem statements issued by the armed forces and DRDO.

  Eligibility

  • ·Indian startup, MSME, or individual innovator
  • ·Must address an open problem statement published by DIO
  • ·DPIIT recognition preferred but not mandatory for all challenges

  Key benefit: Government as first customer — defence proof-of-concept grant with a defined procurement pathway

  Official source →

  Apply at: idex.gov.in → Open Challenges → Apply against an active problem statement

• Atal Incubation Centres (AIM)

  Early stageIncubationPhysical space

  NITI Aayog — Atal Innovation Mission

  Physical incubation at 100+ Atal Incubation Centres (AICs) and Atal Community Innovation Centres (ACICs) across India — access to mentors, lab, co-working, and connections to corporates and investors.

  Eligibility

  • ·Early-stage startup in any sector (AIC) or social innovation (ACIC)
  • ·AIC/ACIC selects cohorts via their own application process
  • ·DPIIT recognition advantageous but not universally required

  Key benefit: Free or subsidised incubation space + investor network + government credibility signal

  Official source →

  Apply at: aim.gov.in → Find an AIC near you → apply to their open cohort

• National Startup Awards

  Growth stageRecognitionAnnual application

  DPIIT

  Annual recognition across 50+ categories for startups, incubators, and accelerators. Winners get ₹5 L cash prize, media exposure, government procurement introductions, and fast-track to some central scheme priorities.

  Eligibility

  • ·DPIIT recognised startup
  • ·At least 1 year of operations
  • ·Not previously won in the same category
  • ·Annual applications — notification usually February-March

  Key benefit: Credibility signal for investors and enterprise customers; also opens procurement fast-lanes

  Official source →

  Apply at: startupindia.gov.in → National Startup Awards → Open application window