Government Schemes For Startup in India | Sarkari Yojana For Startups In India

goverment schemes startups

Startup Government Schemes by the Government of India

The present decade will probably be remembered as India’s decade of entrepreneurship. The startup scene in the nation is booming, and the future seems incredibly promising for business owners. Records show that India has one of the world’s fastest-growing startup ecosystems, and both the size and importance of companies there are at all-time highs. Its expansion has been made possible by the Indian government’s ongoing support of startups by offering them incentives. They have introduced a number of Sarkari yojanas aimed at assisting startups during the past few years. The intention behind these plans and funds has been to foster an atmosphere that will allow businesses to prosper.
Hence, if you’re an aspiring businessperson in India looking to launch a company, you need to be aware of this Sarkari yojana for startups for new businesses. We’ll talk about the best government schemes for startups in India in this article, along with their advantages

Top 10 Government Schemes for Young business startups in India

These are the top ten government funding schemes for startups in India

                             Government schemes for startups in India
Schemes Benefits
Startup India Initiative encourage leadership and talents
Startup India Seed Fund Scheme for entering the market and monetization
Pradhan Mantri Mudra Yojna access to finance and loans
Atal Innovation Mission Promotes top-tier innovation clusters
Credit Guarantee Trust Fund Provide collateral-free loans
Venture Capital Assistance Scheme help establish agricultural ventures
The Standup India Scheme provides financial assistance in women
Design Clinic Scheme encourage experimenting with novel ideas.
Raw Material Assistance Scheme help entrepreneurs to find raw materials
Single Point Registration Scheme offers a single-window method for submitting bids

Government Schemes For Startups in Details

1. Startup India Initiative

The largest government programme in India for startups is the Startup India Initiative. This programme, which was launched by Prime Minister Narendra Modi in 2016, covers more than 50,000 firms. To encourage leadership and talents, it includes a large selection of ebooks, coursework, and mentorship programmes. Important advantages of this plan include:

  • an exemption of taxes
  • cost-cutting
  • 90-day simple business wind-up option.
  • funding availability
  • compliance with labour and environmental rules by self-certification
  • Patent registration expedited with a charge reduction of 80%.

The following are the requirements for this federal programme.

  • The new business must be a registered LLP, private limited company, or partnership firm.
  • Any preceding fiscal year’s turnover shouldn’t have exceeded 100 crores.
  • After 10 years of its inception, the startup must submit an application.

2. Startup India Seed Fund Scheme

Early-stage enterprises can receive financial support through the Startup India Seed Fund Scheme (SISFS) for entering the market, product trials, monetization, prototype development, and proof of concept development. The government has committed 945 crores in financing for this programme. It is anticipated that 3600 businesses will receive money from it. Grants of up to 20 lakh rupees will be used to finance trials or prototype development. Also, this programme seeks to advance the nation’s innovation culture and development. Below are the requirements for being eligible for this government programme for startups.

  • DPIIT needs to recognise the starting.
  • The idea or product must be technically sound, inventive, and scalable.
  • Indian promoters are required to own 51% or more of the shares.

Within two years of its formation, the startup must apply for this programme. The USP of this government initiative is that it doesn’t require physical incubation and is industry-neutral.

3. Pradhan Mantri Mudra Yojna

PMMY is a programme designed as one of the government loan schemes for business startups in India, enabling MSMEs and startups to have access to finance and loans in order to sustain and expand their businesses. Starting in 2015, qualified applicants can apply for loans of up to 10 lakhs to cover their working capital needs. Five to seven years are allotted for debt payback under this programme. This government loan scheme for startup business in the PMMY are offered in one of three categories:

  • Up to 50,000 Shishu
  • Up to 5,000 Kishor
  • Between 5 and 10 lakhs for Tarun

To be eligible for this programme, startups must be engaged in any non-farm industry, including manufacturing, services, or trading.

4. Atal Innovation Mission

This programme falls within a group of government initiatives for startups with the goal of fostering innovation and entrepreneurship across the nation. This plan mostly focuses on tier-2 and tier-3 cities. This programme also referred to as AIM, offers a framework for promoting top-tier innovation clusters, sectoral focus, big challenges, and talent efforts. Some of the primary efforts included in this strategy are innovation centres, Atal tinkering laboratories, community incubation centres, and innovation centres. The programme offers companies simple access to information and tools in addition to offering financial support and resources.

5. Credit Guarantee Trust Fund

Under this government loan schemes for startups, MSMEs and certain startups are eligible for collateral-free loans from the Credit Guarantee Trust Fund For Micro & Small Businesses (CGTMSE). These loans have maximum borrowing limits of INR 1 crore. It benefits farmers, SMEs, self-help organisations, retailers, and educational institutions. This plan increases the credit delivery system while facilitating loan flow in the startup industry. The CGTMSE is mostly for manufacturing and service companies. Loans made under this programme may be claimed as term loans or working capital.

6. Venture Capital Assistance Scheme

One of the most well-known government schemes for agricultural startups in India. Entrepreneurs can access interest-free debt and OD under this plan. They are able to cover up their operating capital in this way. The primary goal of this plan is to expand the agro-industry. The government set money for this programme at INR 10,000 crores. This fund provides interest-free debt financing worth INR 2,500 crore to small and marginal farmers. The advantages of this plan include:

  • Cash advance and term loans under government loan schemes for startups in India
  • help establish agricultural ventures
  • a 5-year maximum extension on the payback period.
  • arranges meetings, visits, and training to assist startups in starting an agribusiness.
  • debt financing from financial institutions without interest.

7. The Standup India Scheme

This government scheme for startup india s one of the few government initiatives for startup companies that provides financial assistance in the form of loans to encourage business ownership among women, members of scheduled castes and tribes, and STs. The Prime Minister created the SIC in 2016 with the intention of promoting business in this area and creating jobs for women and people from poor castes. Banks will lend up to INR 1 crore to at least one woman and one SC or ST borrower. This government schemes for startup business in India offers a seven-year loan repayment schedule that is adjustable. Nevertheless, this programme is exclusively open to first-time business owners.

8. Design Clinic Scheme

Every MSME and new company in India is required to create a design-centric business strategy. The MSME Ministry created this programme to encourage experimenting with novel ideas. It strives to promote an environmentally sustainable environment through ongoing skill development and training. For joining design seminars and providing up to INR 3.75 lakhs to the firm to host the seminar, the government will grant up to INR 60,000 each. This plan is intended to help business owners network with like-minded people and understand the newest design trends and best practices.

9. Raw Material Assistance Scheme

Under the government of India schemes for startups, was introduced by the National Small Industries Corporation for new businesses in India (NSIC). It attempts to help entrepreneurs and businesses find raw materials. The programme allows participants to apply for low-interest loans and receive financial assistance with purchasing raw materials.

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10. Single Point Registration Scheme

This central government scheme for startups offers a single-window method for submitting bids to MSMEs and startups. National Small Industries Corporation managed this. With the help of this initiative, startups will find it simpler to present bids for government contracts. Participating in government procurement processes decreases the time, expense, and requirements for SRPS. To qualify for this programme, a company must not have been incorporated for a full year before applying.

Benefits of this government scheme for startups in India

While each new government programme in India has pros and cons, they all have some advantages in common. The following are the main advantages of India’s government startup programmes.

  • Financial support
  • Encourage funding
  • provide loans without collateral
  • impart mentoring
  • tax-exempt status
  • network possibilities
  • Simple access to important materials


The government schemes for business startups discussed in this article serve a dual purpose: they assist and profit from already-existing startups and businesses while also motivating and inspiring aspiring businesspeople, students, and leaders from all walks of life to start their own companies and advance the cause of an Aatmanirbhar Bharat. The goal is to give India’s creative minds the freedom to conceive up innovative ideas, put them into action, and ultimately turn those ideas into thriving businesses. Given that India has the third-highest number of startups in the world, these measures appear to have achieved their intended goals.

What is the Startup India scheme?

The Startup India scheme is an initiative of the Government of India to promote entrepreneurship and innovation among young and dynamic entrepreneurs. The scheme provides a range of incentives, such as tax benefits, easier access to funding, and simplification of regulatory procedures for startups in Indi

Who is eligible to apply for the Startup India scheme?

Any entity that is registered in India and has been incorporated for less than 10 years can apply for the Startup India scheme. The entity must also have an annual turnover of less than INR 100 crore.

What are the benefits of the Startup India scheme?

The Startup India scheme offers a range of benefits, including tax exemptions for a period of 3 years, self-certification for compliance under various labour laws, easier access to funding through the Startup India Seed Fund Scheme, and a dedicated portal for startups to access information and support.

What is the Stand-Up India scheme?

The Stand-Up India scheme is an initiative of the Government of India to promote entrepreneurship and self-employment among women and SC/ST communities. The scheme provides loans to these communities for starting new enterprises in the manufacturing, trading, or services sectors.

Who is eligible to apply for the Stand-Up India scheme?

Any woman or member of the SC/ST community who wants to start a new enterprise in the manufacturing, trading, or services sector is eligible to apply for the Stand-Up India scheme.

What are the benefits of the Stand-Up India scheme?

The Stand-Up India scheme provides loans of between INR 10 lakh and INR 1 crore to women and SC/ST entrepreneurs for starting new enterprises in the manufacturing, trading, or services sector. The loans are offered at a concessional rate of interest and with a repayment period of up to 7 years.

What is the Atal Innovation Mission?

The Atal Innovation Mission is an initiative of the Government of India to promote innovation and entrepreneurship in India. The mission aims to create a culture of innovation and entrepreneurship by providing funding, mentoring, and other support to startups and innovators.

Who is eligible to apply for the Atal Innovation Mission?

Any Indian citizen who has an innovative idea or is working on a startup can apply for support from the Atal Innovation Mission.

What are the benefits of the Atal Innovation Mission?

The Atal Innovation Mission provides a range of benefits to startups and innovators, including funding, mentoring, incubation support, and access to a network of experts and peers in the innovation and entrepreneurship space.

What is the Pradhan Mantri Mudra Yojana?

The Pradhan Mantri Mudra Yojana is an initiative of the Government of India to provide loans to small and micro enterprises in India.

Who is eligible to apply for the Pradhan Mantri Mudra Yojana?

Any small or micro-enterprise that needs funding to start or grow their business can apply for a loan under the Pradhan Mantri Mudra Yojana.

What are the benefits of the Pradhan Mantri Mudra Yojana?

The Pradhan Mantri Mudra Yojana provides loans of up to INR 10 lakh to small and micro enterprises at a concessional rate of interest. The loans can be used for a range of purposes, such as buying equipment, expanding business operations, or launching new products.

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