By Quick answer: What government schemes are available for startups in India?
- Seed Fund (SISFS) — up to ₹20 lakh grant, ₹50 lakh investment, via incubators.
- Fund of Funds — backs SEBI-registered VC funds; new ₹10,000 crore announced.
- Credit guarantee — collateral-free loan cover up to ₹20 crore.
- Tax holiday — 3 of 10 years, for startups incorporated before April 2030.
- Sector schemes — BIRAC for biotech, NIDHI for tech, Mudra for small loans.
Key takeaways
- Get DPIIT recognition first — it's the key to most schemes.
- The Seed Fund Scheme reaches you through incubators, so pick one well.
- Fund of Funds money reaches you indirectly through VC funds.
- Credit guarantees make debt possible without collateral.
- State startup policies often add grants on top of central schemes.
Few founders realise how much support the Indian government offers startups — or how much of it routes through intermediaries like incubators, VC funds and banks. Here's what's available, who qualifies, and how to actually reach it.
The main central schemes
| Scheme | What you get | How it reaches you | Key condition |
|---|---|---|---|
| Startup India Seed Fund Scheme1 | Grant up to ₹20 lakh; up to ₹50 lakh via convertible debentures or debt | Through selected incubators | DPIIT-recognised, ≤2 years old |
| Fund of Funds for Startups | Indirect equity | Via SEBI-registered VC funds | Investor's choice |
| Credit Guarantee Scheme for Startups | Collateral-free loan guarantee up to ₹20 crore3 | Banks, NBFCs, venture debt funds | DPIIT-recognised |
| Startup tax holiday | 100% of profits deductible for 3 of first 10 years | Income tax, after IMB approval | Incorporated before 1 April 2030 |
| BIRAC Biotechnology Ignition Grant4 | Grant up to ₹50 lakh | Direct calls for proposals | Biotech innovation |
| Mudra (Tarun Plus) | Loans up to ₹20 lakh | Banks and lenders | Micro and small enterprises |
Startup India Seed Fund Scheme
The ₹945 crore scheme was designed to support about 3,600 startups through around 300 incubators2. Selected incubators receive up to ₹5 crore each and run their own calls.
- Get DPIIT recognition — see DPIIT registration5.
- Shortlist incubators — on the Seed Fund portal, filter by sector and location.
- Apply to up to three — tailor each application to the incubator's focus.
- Pitch to the incubator committee — prepare a crisp plan with milestones.
- Receive funds in tranches — tied to milestones you agree.
Budget 2025 changes worth knowing
A new Fund of Funds
A fresh ₹10,000 crore Fund of Funds with expanded scope was announced3.
Bigger credit guarantees
Cover for startups doubled to ₹20 crore, with lower fees for loans in focus sectors.
Longer tax holiday
Available to eligible startups incorporated before 1 April 2030.
Don't forget state schemes
Many states run their own startup policies with grants, rent subsidies, patent reimbursement and incubation — Karnataka, Kerala, Telangana, Gujarat, Tamil Nadu, Uttar Pradesh and others. Check your state's startup portal; benefits often stack with central schemes.
- DPIIT recognition in hand
- A clear milestone plan for how you'll use the money
- Clean books and compliance — schemes ask for them
- An incubator or partner that fits your sector
- A calendar of application windows
Government money works best alongside other funding. See angel investors in India and how to raise seed funding.
Key terms, defined
SISFS — Startup India Seed Fund Scheme. Fund of Funds — a fund that invests in other funds. Credit guarantee — government cover that reduces lenders' risk. Incubator — an organisation supporting early startups with space, mentoring and funding. IMB — Inter-Ministerial Board approving the tax holiday.
Frequently asked questions
What is the Startup India Seed Fund Scheme?
A ₹945 crore DPIIT scheme that funds early startups through selected incubators: grants of up to ₹20 lakh for proof of concept, prototypes or trials, and up to ₹50 lakh through convertible debentures or debt-linked instruments for market entry and scaling.
Who is eligible for the Seed Fund Scheme?
DPIIT-recognised startups incorporated not more than two years before applying, with Indian promoters holding at least 51%, and not having received more than a set amount of other government support.
Does the government invest directly in startups?
Mostly no. The Fund of Funds for Startups invests in SEBI-registered alternative investment funds, which then invest in startups.
What is the Credit Guarantee Scheme for Startups?
It provides guarantee cover on loans to DPIIT-recognised startups from banks and other lenders, so they can borrow without collateral. Budget 2025 raised the cover from ₹10 crore to ₹20 crore per startup.
Are there grants for biotech startups?
Yes. BIRAC's Biotechnology Ignition Grant supports early-stage biotech ideas with grants of up to ₹50 lakh, alongside other BIRAC programmes.
Can I get a Mudra loan for a startup?
Mudra loans support micro and small enterprises. Since 2024, the Tarun Plus category allows loans up to ₹20 lakh for borrowers who repaid an earlier Tarun loan.
Sources
- Startup India Seed Fund Scheme — Official portal
- Inc42 — ₹945 crore Startup India Seed Fund plans support for 3,600 startups
- Inc42 — Budget 2025: five key takeaways for Indian startups
- BIRAC — Biotechnology Ignition Grant
- Startup India — Startup recognition and benefits
- Checked October 23, 2026. Figures that change — fees, salaries, prices — are reviewed every six months; if something is out of date, tell us.
Where to go from here
- DPIIT registration — the key to most schemes
- How to raise seed funding in India — combine grants with equity
- Startups in IndiaHow to raise seed funding in India: sources, instruments, timelines and what investors checkHow to raise seed funding in India in a tighter market: who invests, which instruments to use, how to run the process and what investors check at seed.
- Startups in IndiaDPIIT registration: Startup India recognition benefits, eligibility and the step-by-step processDPIIT startup registration explained: 2026 eligibility rules, documents, the step-by-step process and every benefit — tax, compliance, IP and funding.
- Startups in IndiaESOP meaning: how employee stock options work in India — vesting, exercise, tax and buybacksESOP meaning in plain English: how employee stock options work in Indian startups — grants, vesting, exercise, the two tax points, deferral and liquidity.
- Startups in IndiaTop VC firms in India by stage and focus — and how to pick the right one to pitchTop VC firms in India grouped by stage — seed, early and multi-stage — with their focus areas and a practical method for choosing which investors to pitch.
- Startups in IndiaBusiness plan template for an app startup: ten sections, what to write in each, and a one-page versionA business plan template for app startups: ten sections with prompts for each, a one-page lean version, and the financial basics investors and banks expect.
- Startups in IndiaPitch deck template: the 12 slides investors expect, what goes on each, and common mistakesA startup pitch deck template with the 12 slides investors expect, what to put on each, examples of strong slides and the mistakes that get decks skipped.
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