Startups in India have grown fast over the last ten years, driven by both personal investment and clear official strategies.
Idea beginnings now meet paths to global reach, thanks to varied public initiatives.
Each program works differently; goals shift, and methods vary. Still, common threads link them through support and direction.
These initiatives usually aim to fill clear shortages like limited funding channels, missing incubators, gaps in key industry innovations, or overly complex rules.
Here’s what counts most: these plans aren’t just talk from government offices.
On the ground, plenty of entrepreneurs actually lean on them when building companies in tech, making things, farming, health services, or impact-driven work.
Data from the Department for Promotion of Industry and Internal Trade shows that India passed over 180,000 active startups by mid-2025, a milestone shaped by real-world systems built into these initiatives.
Figuring out what every main option does, along with its purpose, outcome, and real advantages, lets founders choose wisely.
One size never fits all when it comes to business aid. Getting clear on differences makes a difference.
Top 10 Startup Programs and Schemes in India
1. Startup India Initiative
What it is
Backed by the Indian government, Startup India kicked off in 2016 with clear goals for growth. Implemented through DPIIT, this effort falls under the Ministry of Commerce and Industry.
Purpose
This effort aims to make rules easier to follow, boost chances for funding, and support businesses built on innovation.
The initiative's goal is to lessen startups' regulatory burden and compliance expenses so they can concentrate on their core business operations.
Benefits
Only after receiving a Certificate of Eligibility from the Inter-Ministerial Board can recognized startups claim income tax exemption for three consecutive years within the first ten years.
Startups recognized by DPIIT are eligible for an 80% fee refund on filing costs and expedited patent examination.
On top of that, the government covers the costs of the facilitator, and startups receive a rebate of up to 80% on their patent filing fees.
Only statutory fees are still paid by startups. What tends to happen next? Startups that have been recognized by DPIIT are not required to submit an Earnest Money Deposit (EMD) and can participate in government procurement without the customary prior experience or turnover requirements.
2. Fund of Funds for Startups (FFS)
What it is
Back in 2016, the Fund of Funds for Startups launched with a base of INR 10,000 crore. Oversight is handled by the Small Industries Development Bank of India, known as SIDBI.
Purpose
Instead of making direct investments in startups, the fund invests in SEBI-registered AIFs, which then invest in qualifying startups through equity or equity-linked instruments.
The fund expands the venture capital ecosystem by investing in AIFs, which are required to invest at least twice as much FFS capital in qualified startups.
Benefits
By 2024, SIDBI had provided funding to more than 100 SEBI-registered AIFs, which then made numerous startup investments.
Founders gained easier paths to skilled venture capitalists, especially during the startup and expansion phases.
Ecosystem strength became the focus of the approach, rather than isolated handouts or single lump sums.
3. Atal Innovation Mission (AIM)
What it is
Since 2016, the Atal Innovation Mission has been NITI Aayog’s top project, aiming to grow innovation and startup skills across different areas.
Purpose
One way AIM grows innovation lies in what it calls Atal Tinkering Labs inside schools, places where kids explore hands-on ideas.
Startups also get support via Atal Incubation Centers meant to help new ventures take root.
Change often happens slowly, shaping innovation skills over time rather than producing rapid outcomes.
Benefits
From day one, startup teams backed by Atal Incubation Centers get access to space, guidance, and real backing.
Data from NITI Aayog shows that 10,000+ Atal Tinkering Labs have been launched, along with approximately 72 Atal Incubation Centers that are in operation nationwide by 2025.
These resources make it easier for startups to develop prototypes and conduct early testing.
4. Stand-Up India Scheme
What it is
Starting in 2016, Stand-Up India targets support for entrepreneurship, particularly among Scheduled Castes, Scheduled Tribes, and women.
Purpose
By providing eligible SC, ST, or female entrepreneurs establishing greenfield businesses with composite loans (term plus working capital) from scheduled commercial banks ranging from ₹10 lakh to ₹1 crore, the scheme aims to fill gaps in business credit.
Benefits
Entrepreneurs can apply for composite loans under the program, which combine working capital and term loans to help with setup and ongoing expenses.
Official data indicates that since the program's launch, over 2.36 lakh loans have been approved, indicating a significant uptake by business owners.
On the ground, the program offers easily accessible bank credit and support to first-time SC, ST, and women entrepreneurs starting greenfield businesses in industries like manufacturing, services, trading, and agri-allied activities.
5. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
What it is
The Government of India, working with SIDBI and the Ministry of MSME, created CGTMSE to support loans with credit guarantees.
Subject to scheme limitations, the trust offers the lending institution partial credit guarantee coverage in the event of borrower default.
Purpose
Banks and other financial institutions can lend money to micro and small businesses under the program without needing collateral or third-party guarantees. This approach tackles a long-standing hurdle many young ventures face.
Benefits
Subject to scheme conditions, eligible micro and small businesses can obtain collateral-free loans with guarantee coverage for credit facilities up to ₹2 crore.
A significant number of bank-approved credit facilities for micro and small businesses have been supported over time by the CGTMSE framework.
6. Pradhan Mantri Mudra Yojana (PMMY)
What it is
Starting in 2015, PMMY offers financing to small and micro entrepreneurs via Shishu, Kishor, and Tarun options.
Purpose
The program supports new business owners who have limited access to funding while integrating micro and small enterprises into the formal credit system.
Benefits
Depending on the Shishu, Kishor, or Tarun category, qualified borrowers can obtain collateral-free loans up to ₹10 lakh under PMMY.
According to official Ministry of Finance data, cumulative PMMY disbursements have been rising steadily over time.
The program is frequently used in the early phases of business activity and market testing, and it is intended for microenterprises, traders, service providers, and small manufacturers.
7. Biotechnology Industry Research Assistance Council (BIRAC)
What it is
BIRAC is a Section 8 non-profit organization that was founded to advance biotechnology innovation. It falls under the Department of Biotechnology, part of the Ministry of Science and Technology.
Purpose
BIRAC offers grants, financial assistance, access to shared infrastructure, and chances for scientific cooperation to biotechnology and life-science startups and researchers.
Benefits
Funding like the Biotechnology Ignition Grant helps researchers show new ideas work.
BIRAC has assisted numerous innovators, startups, and research teams in the biotechnology industry since its founding. Support at this stage makes a key difference.
8. Software Technology Parks of India (STPI)
What it is
The Ministry of Electronics and Information Technology (MeitY) oversees STPI, an independent organization that was founded in 1991.
It functions under the MeitY policy framework while maintaining administrative autonomy.
Purpose
Originally established to support software and IT exports, STPI has since broadened its scope to include infrastructure, incubation, and streamlined compliance frameworks for startups.
Benefits
Startups and IT companies can leverage single-window regulatory support, high-speed data connectivity, and plug-and-play incubation facilities.
With a growing presence in Tier-II and Tier-III cities, STPI has registered thousands of IT and software units over the years. On the ground, talent flows widen; activity moves outward from big city hubs.
9. National Initiative for Developing and Harnessing Innovations (NIDHI)
What it is
The Department of Science and Technology (DST) has an umbrella program called NIDHI that unifies various initiatives to support early-stage, innovation-driven businesses.
Purpose
From idea generation and prototyping to early startup formation, the program fosters innovation.
Certain needs, like early market validation, entrepreneur support, and prototyping, are addressed by various NIDHI subprograms.
Benefits
Prototype development is supported by programs like NIDHI-PRAYAS, and individual innovators receive early financial and mentoring support from NIDHI-EIR.
DST claims that these programs assist entrepreneurs in verifying deep-tech ideas and filling early-stage funding gaps prior to gaining access to more substantial funding sources.
10. The SAMRIDH Program (SAMRIDH)
What it is
In 2021, the Ministry of Electronics and Information Technology introduced the Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH).
Purpose
This program focuses on providing funding and customer access to software product startups in order to accelerate their growth.
Benefits
Up to ₹40 lakh in funding support, matched by private investment, is given to chosen startups.
According to MeitY, the program places more emphasis on scaling and market readiness than just ideation.
Final Thoughts
The framework for startup support in India is extensive, multi-layered, and constantly changing. Not every plan is appropriate for every founder, and not every advantage is instantaneous.
Institutional support is no longer a policy term but a useful tool when entrepreneurs know which programs fit their stage, industry, and constraints.
In India today, starting something new is linked to both access and risk. Awareness and execution are frequently where the gap is found.
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