Top 10 Government Schemes for Startups in India (2024)

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With over 1,10,000 startups in India, there is no doubt that the Indian startup space is bullish!

However, passionate startup founders trying to turn their ideas into reality do still have to navigate the initial hurdles. And that can be daunting.

To help navigate this journey, the Govt. Of India is leaving no stone unturned.

They are backing founders and their startups with a treasure of schemes designed to bolster up startups to the big market. From financial grants to global market access, there's an initiative for everyone to speed to market.

But here's the thing, with so many options, the information overload can be real. That's where FavcyVB comes in!

Today, we bring to you the top 10 government schemes that can directly benefit your startup.

1. Startup India Initiative

This flagship program serves as the foundation, simplifying regulations with self-certification and compliance relaxations. With over 58,000 startups benefiting, it has demonstrably created an estimated 1.75 lakh jobs, showcasing its impact.

Beyond self-certification and compliance relaxations, the Initiative offers:

• Funding opportunities: Startup India Hub connects you to relevant investors and networks.
• Mentorship programs: Connect with experienced industry veterans for guidance.
• Startup Ranking Platform: Gain visibility and attract potential investors.

2. Startup India Seed Fund Scheme (SISFS)

Facing difficulties securing early-stage funding? SISFS comes to the rescue, providing financial assistance of up to ₹10 crore through accredited incubators. As of today, 204 ventures have received funding, leveraging a collective investment of ₹613.57 crore, highlighting its effectiveness in nurturing young ideas.

• Focus: Early-stage ventures in mobile apps, healthcare & diagnostics, cleantech, education, and more.
• Eligibility: Startups incorporated as private limited companies with a minimum viable product (MVP).
• Application: Through accredited incubators registered with Startup India.

3. Credit Guarantee Scheme for Startups (CGSS)

Accessing credit, often a major roadblock becomes smoother with CGSS. This scheme guarantees loans up to ₹5 crore from participating banks, alleviating financial constraints. Over 7,300 startups have benefitted, with sanctioned loans exceeding a staggering ₹29,500 crore, demonstrating its reach and impact.

• Loan types: Term loans, working capital loans, and purchase order financing.
• Benefits: Up to 80% guarantee on loans, reduced interest rates, longer repayment tenure.
• Eligibility: Startups incorporated as private limited companies with a turnover of up to ₹50 crore in the previous year.

4. Atal Innovation Mission (AIM)

Do you envision your innovation revolutionizing healthcare, education, or agriculture? AIM empowers you with grants of up to ₹10 crore. Its impact is evident in the establishment of 75,794 Tinkering Labs and 708 Atal Incubation Centers across India, fostering a culture of creativity and problem-solving.

• Programs: Atal Tinkering Labs (ATL) in schools promote scientific temper and innovation, while Atal Incubation Centers (AIC) nurture startups across various sectors.
• Support: Grants for prototype development, market research, and capacity building.
• Eligibility: Educational institutions, incubators, and research institutions can apply for establishing ATLs or AICs.

5. Software Technology Parks of India (STPI)

Operating in the IT domain? STPI is your ally. It offers tax benefits, infrastructure support, and incubation facilities, nurturing the growth of over 85,000 STPI units. These units have collectively generated exports worth over ₹5.5 lakh crore, showcasing the scheme's contribution to the tech sector.

• Benefits: Tax exemptions on profits and import duties, infrastructure support in designated STPI centers.
• Eligibility: IT/ITES companies with export intent.
• Special Initiatives: "STPI NEXT" focuses on emerging technologies like AI, AR/VR, and IoT.

6. Pradhan Mantri Mudra Yojana (PMMY)

Recognizing the pivotal role of MSMEs, PMMY empowers them with collateral-free loans ranging from ₹50,000 to ₹10 lakh. Since its launch, it has transformed the lives of over 30 crore entrepreneurs, acting as a springboard for countless success stories.

• Loan schemes: Three categories - Shishu (up to ₹50,000), Kishor (₹50,000-₹5 lakh), and Tarun (₹5 lakh-₹10 lakh).
• Eligibility: Micro and small enterprises across various sectors.
• Benefits: No collateral required, flexible repayment options, and interest rate subsidies.

7. Ebiz Portal

Battling registrations and approvals? Ebiz is your one-stop solution. This single-window platform streamlines the process, saving valuable time and effort for entrepreneurs. With over 1.3 crore registrations processed, it's a testament to its efficiency in simplifying business operations.

• Services: Company registration, GST compliance, licenses, approvals, and clearances.
• Benefits: Faster processing times, a single window for all needs, and online tracking of applications.
• Additional resources: Ebiz Mobile App for on-the-go access.

8. Dairy Processing and Infrastructure Development Fund (DIDF)

Are you passionate about revolutionizing the dairy sector? DIDF provides financial assistance for setting up or expanding processing units. With an outlay of ₹10,861 crore, it aims to empower over 5 lakh milk producers, fostering inclusive growth in the sector.

• Support: Grant-in-aid for modernization of existing units, establishment of new processing units, and capacity building.
• Eligibility: Dairy cooperatives, farmer-producer organizations, and private companies.
• Benefits: Financial assistance for infrastructure development, processing equipment, and cold chain facilities.

9. Startup Intellectual Property Protection Scheme (SIPPS)

Protecting your intellectual property (IP) is crucial for sustainable growth. SIPPS reimburses startups 50% of the filing fees for patents, trademarks, and copyrights, up to a maximum of ₹5 lakh. This scheme safeguards your ideas, empowering you to confidently build your brand.

• Reimbursem*nt: 50% of filing fees for patents, trademarks, and copyrights, up to a maximum of ₹5 lakh.
• Eligibility: Registered startups fulfilling specific criteria.
• Benefits: Encourages innovation and protects intellectual property rights.

10. Market Access Promotion Scheme (MAPS)

Dreaming of taking your product to the global stage? MAPS helps make it a reality. It provides financial assistance for participation in international trade fairs and exhibitions, opening doors to new markets and opportunities. Over 8,000 companies have benefitted, generating exports of over ₹28,000 crore, showcasing its effectiveness in propelling global ambitions.

• Support: Financial assistance for participation in international trade fairs, exhibitions, and buyer-seller meets.
• Eligibility: Export-oriented companies registered with DGFT.
• Benefits: Connect businesses with potential international buyers, and increase export opportunities.

The Indian startup ecosystem is thriving. And if you're a part of this incredible story, we hope one of these government schemes comes in handy for your venture-building journey.

In the previous newsletter, we shared insights on some of the most successful bootstrappers & the strategies they followed. Want to read it? Read Here.