A start-up is a firm established by one or more entrepreneurs with the purpose of creating a unique product/service, with early money pooled in by the founders/family/friends. Various startups in finance, education, pharma, e-commerce and related fields have sprung up in recent years and contributed tremendously to the Indian economy by providing millions of jobs to educated youth across the country. 

Recognising the crucial importance of these startups in boosting the economy of the country, the Government of India has come up with various initiatives to support startups in India. 

Additional Reading: Which is the best way to get up a startup business loan in India?
Let us have a look at the top 10 best Government start-up support schemes. 

Top 10 Government Schemes that provide Financial Support to Start-ups in India

  1. Start-up India 

Launched by Prime Minister Narendra Modi in 2016, the scheme falls under the purview of the Department of Industrial Policy and Promotion. Aims to support Indian entrepreneurs in creating 10 lakh mobile app startups. 

The flagship programme under Start-up India is the MUDRA loan scheme (Pradhan Mantri Mudra Yojana). This programme offers microfinance loans at low interest to emerging entrepreneurs from low socioeconomic strata. Funding of Rs. 20,000 crores have been allotted for this scheme. 

Read all that you need to know about Pradhan Mantri Mudra Yojana - what it is, types of funding available, how to get funding and more. 

  1. ATAL Innovation Mission

The government scheme, set up by Niti Aayog, was created to promote an innovative culture and the development of the spirit of entrepreneurship across India. The scheme aims to create cooperation between state, central, and local innovation schemes and implement entrepreneurship spirit from schools to corporates by developing world-class Atal Incubators (AICs). This would help to address commercial and social entrepreneurship ventures in India.

  1. e-Biz Portal 

Founded in 2013, this is the first online platform that allows government-to-business (G2B) communication. e-Biz’s portal primary purpose was to create an entrepreneurship friendly atmosphere in the country. The platform has been developed by Infosys and has launched 29 services across 5 states in India. It is a single communication online forum for Indian businesspeople and investors for conducting transactions, clearances, and activities related to both of them.

Additional Reading: What are the features of a Start-up?

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

The SIP-EIT scheme was launched by the Ministry of Electronics and Information Technology to provide financial funding for MSMEs and Technology Startups to encourage innovation, acknowledge international patent rights and optimise the growth of the sector in the county.  Businesses that want to go global need to apply for intellectual property rights as innovations are at risk of being stolen or misappropriated. Hence, the government has executed various protection measures through the SIP-EIT scheme.

  1. Multiplier Grants Scheme (MGS)

MGS was launched under the Department of Electronics and Information Technology (DeitY) for promoting integrated research and development (R&D) between industry and educational institutions for developing products and packages.  Under this scheme, the government provides financial assistance at 2x times the amount contributed by the industry, provided the industry supports R&D of products that get marketed at the institutional level. 

MGS encourages and hastens the development of indigenous products/services. Government grants are available up to Rs. 2 crores per project with project tenure limited to around 2 years. For industrial collaborations, the cost is limited to Rs. 4 crores with a maximum tenure of 3 years.

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

The government established CGTMSE for providing collateral-free business loans to MSME and startups. The scheme allows business units to get collateral-free loans at a low rate of interest up to a maximum of Rs. 100 lakhs under a tie-up with SIDBI (Small Industries Development Bank of India) for promoting new businesses and relaunching existing ones. The loan is provided mainly for manufacturing companies, either as working capital or term loan.

  1. Software Technology Park (STP) 

STP scheme has been established as a 100% export-oriented programme for promoting and exporting computer software and professional services through communication networks or physical media. The scheme focuses solely on computer software. 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) concepts for forming Science Parks/Technology Parks are covered under this scheme.

  1. Loan For Rooftop Solar Pv Power Projects 

The scheme is committed to the development of 40,000 MWp of Grid-Interactive Rooftop Solar PV Plants over the next five years for increasing reliance on non-conventional energy sources. Such rooftop solar PV plants, with capacities between 1 kW - 500 kW are expected to be installed in various sectors like residential, commercial, and the like across India. Under the scheme, a subsidy of 15% is provided to organisations or individual enterprises for such plants.

  1. NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)

The NewGen IEDC scheme has been launched by the National Science and Technology Entrepreneurship Development Board. The scheme aims to instil a spirit of creativity and entrepreneurship among the youth in India through various methods like counselling, coaching, and assistance. There is also provision for supporting and encouraging entrepreneurship.

  1. Dairy Processing and Infrastructure Development Fund (DIDF)

DIDF is a fund constituted under NABARD in 2017, wherein milk unions, multi-state milk cooperatives, state dairy federations, milk-producing enterprises, and NDDB subsidiaries project's eligibility criteria can avail a loan. The loan component consists of 80%  with the borrower to pay the remaining 20% payment. Interest is charged at 6.5 % p.a. and loan tenure is decided based on the amount of money borrowed. The loan repayment is guaranteed by the respective state government, and in case of borrower default, the state government steps in to contribute the defaulted portion. 

Additional Reading: Government Loans for Small Business Startups in India


These key initiatives by the government are aimed at increasing the number of individuals participating in entrepreneurship in India and help boost the growth of the Indian start-up ecosystem. If you’re planning to establish a startup, keep in mind that the government of India provides various schemes to aid and help in the growth of your establishment. Being aware of the various schemes helps you choose the right ones at the right time and make your entrepreneurship dreams come true. 


1.  What is a Start-up?

A Start-up refers to an established India that was founded which has been in existence for less than ten years, developing innovative products/services and generating revenue less than Rs. 100 million annually.

2. Why is the Government encouraging Startups in India?

India is on the verge of economic development wherein innovation and creativity will lead the change. To encourage and groom such development, the Indian Government is coming up with various schemes to boost the development of startups

3. Can startups get a tax holiday?

Yes, startups get a tax holiday i.e., are exempted from paying income tax, provided they get a certification from Inter-Ministerial Board (IMB).

4. Can startups apply for government tenders?

Startups can apply for government tenders as they have an exemption from the “prior experience/turnover” eligibility requirements which other companies have to adhere to while availing government tenders.

5. Will the start-up get a lower rate for choosing the government schemes?

Yes, most of the government schemes stated above have low rates of interest which will be beneficial for the startups, to conduct their business smoothly.