India’s startup ecosystem has emerged as a global powerhouse, driven by innovation, entrepreneurship, and robust government support. As of 2025, India is home to over 100,000 DPIIT-recognized startups, making it one of the largest startup hubs worldwide. To fuel this growth, both the Central and State Governments have introduced a wide array of funding schemes tailored to support startups at various stages—ideation, prototyping, scaling, and market entry. These initiatives aim to bridge financial gaps, foster innovation, and promote inclusive entrepreneurship, particularly for women, SC/ST communities, and rural innovators.
The Central Government, through programs like the Startup India Seed Fund Scheme (SISFS), Fund of Funds for Startups (FFS), and Atal Innovation Mission (AIM), provides grants, loans, and equity support, often channeled through incubators, banks, or Alternative Investment Funds (AIFs). Schemes like the Credit Guarantee Scheme for Startups (CGSS) and Pradhan Mantri Mudra Yojana (PMMY) ensure collateral-free financing, while specialized programs like NIDHI and SAMRIDH target tech-driven and rural startups. The 2025 Union Budget introduced a new ₹10,000 crore Fund of Funds, emphasizing self-reliance by reducing dependence on foreign capital.
Complementing these, State Governments and Union Territories have launched localized funding schemes under their respective startup policies. States like Karnataka, Maharashtra, and Uttar Pradesh lead with substantial seed funds and grants, focusing on sectors like IT, agri-tech, and healthcare. Others, such as Kerala and Telangana, prioritize women-led ventures and deep-tech innovation, while regions like Jammu & Kashmir focus on job creation in challenging terrains. These schemes often provide equity-free grants, soft loans, and mentorship, aligning with central initiatives for co-funding opportunities.
This comprehensive framework ensures startups across India—urban or rural, tech or traditional—have access to tailored financial support. The following sections detail the Central and State Government funding schemes active in 2025, offering a roadmap for entrepreneurs to navigate and leverage these opportunities for growth and impact.
Central Government Startup Funding Schemes in India (2025)
The Central Government, primarily through the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Micro, Small and Medium Enterprises (MSME), and Department of Science and Technology (DST), offers several funding schemes for startups. These focus on seed funding, grants, loans, and equity support. Below is a comprehensive list based on active programs in 2025:
| Scheme Name | Description | Funding Type & Amount | Eligibility Highlights | Application Portal |
|---|---|---|---|---|
| Startup India Seed Fund Scheme (SISFS) | Provides financial assistance for proof of concept, prototype development, product trials, market entry, and commercialization. Funds are disbursed via incubators. | Grants up to ₹50 lakh per startup (up to ₹20 lakh as grant, balance as debt/convertible instrument). Incubators get up to ₹5 crore each. | DPIIT-recognized startups less than 2 years old; not received >₹10 lakh from other govt schemes; 51% Indian shareholding. | seedfund.startupindia.gov.in |
| Fund of Funds for Startups (FFS) | A new ₹10,000 crore corpus (announced in Budget 2025) to invest in SEBI-registered Alternative Investment Funds (AIFs) for onward funding to startups. Reduces foreign capital dependence. | Equity funding via AIFs; total corpus supports early, seed, and growth-stage startups. | Startups eligible via AIFs; focus on innovation-driven enterprises. | Managed by SIDBI; apply via AIF partners. startupindia.gov.in |
| Credit Guarantee Scheme for Startups (CGSS) | Offers collateral-free loans to startups through scheduled banks and financial institutions. | Credit guarantee cover up to 85% on loans up to ₹5 crore per startup. | DPIIT-recognized startups; viable business model; no prior defaults. | sidbi.in or bank portals. |
| Pradhan Mantri Mudra Yojana (PMMY) | Collateral-free loans for micro-enterprises, including startups, under Shishu (up to ₹50,000), Kishor (₹50,000–₹5 lakh), and Tarun (₹5–10 lakh) categories. | Loans up to ₹10 lakh. | Non-corporate, non-farm small/micro enterprises; startups in early stages. | Lending banks/NBFCs; mudra.org.in |
| National Initiative for Developing and Harnessing Innovations (NIDHI) | Umbrella program with sub-schemes like NIDHI-PRAYAS (prototype funding), NIDHI-EIR (entrepreneur-in-residence), and NIDHI-Seed Fund for scouting, supporting, and scaling innovations. | Grants/loans up to ₹10–25 lakh per project; seed funds up to ₹1 crore via incubators. | Tech-based startups; via Technology Business Incubators (TBIs). | indiascienceandtechnology.gov.in |
| Atal Innovation Mission (AIM) | Supports innovation through Atal Tinkering Labs and Atal Incubation Centres; includes grants for deep-tech startups. | Grants up to ₹10 crore over 5 years for selected incubators/projects. | Startups in health, agriculture, education, etc.; via AIM-selected entities. | aim.gov.in |
| Startup India Investor Connect | Platform connecting startups to investors; includes equity/debt facilitation under broader Startup India funding ecosystem. | Varies (up to ₹10 crore via matched investors). | DPIIT-recognized startups; pitch-based. | startupindia.gov.in |
| SAMRIDH (Startup Acceleration and Mentorship for Rural Innovation and Development with Healthcare) | Equity-free grants and mentorship for rural/healthcare startups. | Grants up to ₹40 lakh + mentorship. | DPIIT-recognized startups focused on rural/affordable healthcare. | startupindia.gov.in |
| MeitY Startup Hub (MSH) | Funding for electronics/IT startups via grants and equity. | Grants up to ₹50 lakh; equity via funds. | DPIIT-recognized tech startups. | msh.meity.gov.in |
| Stand-Up India Scheme | Loans for greenfield enterprises in manufacturing/trading/services, with focus on women/SC/ST entrepreneurs. | Loans ₹10 lakh–₹1 crore. | At least 51% ownership by women/SC/ST; startups in eligible sectors. | Banks; standupmitra.in |
These schemes are accessible via the Startup India portal for DPIIT recognition, which unlocks additional benefits like tax exemptions and IPR fast-tracking.
State Government Startup Funding Schemes in India (2025)
India’s 28 states and 8 Union Territories (UTs) have tailored startup policies, many offering seed funds, grants, and incentives. Funding is often sector-specific (e.g., IT, agri-tech) and requires local registration. Below is a list of major active schemes by state/UT (not exhaustive, as some states like Bihar and Jharkhand have nascent programs; check state portals for updates). States like Karnataka and Maharashtra lead in funding volume.
| State/UT | Scheme Name | Description | Funding Type & Amount | Eligibility Highlights | Application Portal |
|---|---|---|---|---|---|
| Karnataka | Idea2PoC / ELEVATE | Grants for proof-of-concept and scaling innovative startups. | Grants up to ₹50 lakh (Idea2PoC); up to ₹1 crore (ELEVATE). | Karnataka-based startups <5 years old; tech/innovation focus. | startup.karnataka.gov.in |
| Maharashtra | Maharashtra State Innovation Society (MSInS) Fund | Seed funding and grants for tech startups via incubators. | Grants/loans up to ₹50 lakh. | MSME-registered startups in Maharashtra; DPIIT recognition preferred. | maharashtra.gov.in |
| Uttar Pradesh | UP Startup Policy Fund / StartInUP | Seed capital and grants under policy aiming for 10,000 startups; includes CoEs and incubation space. | Grants up to ₹25 lakh; policy incentives up to ₹50 lakh. | UP-based startups; focus on district-level incubation. | startinup.up.gov.in |
| Gujarat | Startup Gujarat Fund / Student Startup Innovation Policy | Equity-free grants and venture funding for student-led and general startups. | Grants up to ₹75 lakh; matching funds. | Gujarat-registered startups; priority for women/youth. | startupgujarat.gujarat.gov.in |
| Tamil Nadu | Tamil Nadu Startup Seed Fund / TANSEED | Early-stage funding via angel networks and incubators. | Grants up to ₹15 lakh. | TN-based startups <3 years; innovation in manufacturing/IT. | startuptn.in |
| Kerala | Kerala Startup Mission (KSUM) Financial Assistance | Seed grants, innovation loans, and equity for tech startups. | Grants up to ₹25 lakh; loans up to ₹1 crore. | Kerala-registered; focus on IT/export-oriented. | startupmission.kerala.gov.in |
| Telangana | WE Hub Fund / T-Hub Funding | Women-focused grants and general seed funding via accelerators. | Grants up to ₹50 lakh (WE Hub); up to ₹1 crore via T-Hub. | Telangana startups; women-led priority for WE Hub. | wehub.telangana.gov.in |
| Delhi (UT) | Delhi Startup Fund / iiDEA | Soft loans and grants for digital economy startups. | Loans up to ₹1 crore (50% govt guarantee). | Delhi-based; digital/IT focus. | iidea.delhi.gov.in |
| Haryana | Haryana Startup Fund / HSINC | Seed grants and incubation support. | Grants up to ₹30 lakh. | Haryana MSMEs/startups; agri-tech priority. | investinharyana.gov.in |
| Andhra Pradesh | AP Innovation & Startup Policy Fund | Grants for deep-tech and social impact startups. | Grants up to ₹50 lakh via incubators. | AP-based; scalable innovations. | apstartup.in |
| Rajasthan | iStart Rajasthan Fund | Equity and grants for desert/tech startups. | Up to ₹50 lakh grants. | Rajasthan startups; focus on tourism/agri. | rajasthan.gov.in/istart |
| Odisha | Startup Odisha Seed Fund | Early-stage funding for local innovations. | Grants up to ₹20 lakh. | Odisha-registered; MSME focus. | startupodisha.gov.in |
| Himachal Pradesh | Him Startup Fund | Grants for hill-area startups in tourism/agri. | Up to ₹25 lakh. | HP-based; sustainable models. | himstartups.in |
| Jammu & Kashmir (UT) | J&K Startup Scheme / JKEDI Fund | Post-Article 370 funding for conflict-affected startups. | Grants up to ₹50 lakh. | J&K residents; job-creating ventures. | jkedf.in |
For other states (e.g., Madhya Pradesh’s MP Startup Policy with ₹100 crore fund; Punjab’s Punjab Startup Fund up to ₹15 lakh), visit the Startup India portal’s State Policies section or respective state websites. Many states align with central schemes for co-funding.
Note: Eligibility often requires DPIIT recognition and GST/MSME registration. Funding availability depends on budgets; apply early via official portals. For personalized advice, consult Startup India hubs or state cells.