In today’s competitive ecosystem, funding can make or break a startup. While private investors and venture capitalists are popular options, the Government of India provides multiple startup grants and schemes that support early-stage businesses with equity-free capital, mentorship, incubation, and networking opportunities. For 2025, here’s the definitive list of the Top 20 Government Grants for Startups in India. These schemes span across technology, agriculture, biotechnology, AI, rural development, and more which will be helping entrepreneurs fuel their journey from idea to commercialization. Why Government Grants are Crucial for Indian Startups Starting a business often requires significant investment, and not every entrepreneur has access to private investors or venture capitalists. Therefore, government grants act as a lifeline by offering equity-free funding that reduces financial stress. Moreover, these grants not only provide money but also ensure mentorship, incubation support, and access to research facilities, which are equally essential for growth. Consequently, startups gain both stability and credibility in the market, making it easier to attract future investments. Challenges in Accessing Government Grants Although government grants are highly beneficial, startups often face challenges during the application process. However, most of these issues arise due to a lack of awareness and improper documentation. Many entrepreneurs struggle with eligibility criteria, preparing business proposals, and meeting technical requirements. Nevertheless, with proper research and mentorship from incubators, these challenges can be overcome. In addition, the government has simplified several processes through online application portals, making it easier for startups to apply. Therefore, persistence and preparation remain the key to securing funding. 20 Grants Proposed By The Indian Goverment 1.Startup India Seed Fund Scheme (SISFS) Purpose: Supports early-stage startups in validation, prototyping, trials, and commercialization. Funding: Up to ₹20 L (equity-free grant) for prototyping; up to ₹50 L for market entry & scaling. Eligibility: DPIIT-recognized startups ≤ 2 years old, prior funding ≤ ₹10 L, scalable tech idea. Link : https://seedfund.startupindia.gov.in 2. Genesis Purpose: Incubation and mentorship for innovative startups in emerging technologies. Funding: Incubation support + access to industry and government networks. Eligibility: Early-stage deep-tech and product-based startups. Link : https://meity.gov.in/genesis 3. MSME Innovative Scheme Purpose: Encourage innovative solutions and products from MSMEs. Funding: Up to ₹15 L per project. Eligibility: Registered MSMEs with innovative proposals. Link : https://msme.gov.in 4. Biotechnology Ignition Grant (BIG) Purpose: Support biotech entrepreneurs to establish proof-of-concept. Funding: Up to ₹50 L. Eligibility: Individuals/startups in the biotech sector with innovative ideas. Link : https://birac.nic.in 5. Digital India Bhashini Initiative Purpose: Promote Indian language-based AI and tech solutions. Funding: Grants for language technology projects. Eligibility: Startups working on AI-powered language solutions. Link : https://bhashini.gov.in 6. NIDHI-PRAYAS Purpose: Convert ideas into functional prototypes for market validation. Funding: Up to ₹10 L (project duration ≤ 18 months). Eligibility: Innovators/entrepreneurs with early-stage ideas. Link : https://nidhi.dst.gov.in 7. Multiplier Grants Scheme (MGS) Purpose: Co-fund industry-led R&D with government support. Funding: Matching industry R&D funding by the government. Eligibility: Industry-academia collaborative projects. Link : https://meity.gov.in/mgs 8. Rashtriya Krishi Vikas Yojana (RAFTAAR) Purpose: Promote agri-tech innovations. Funding: Seed-stage grants for agribusiness startups. Eligibility: Agribusiness entrepreneurs and startups. Link : https://rkvy.nic.in 9. Smart India Hackathon (SIH) Purpose: Solve real-world challenges through innovation. Funding: Cash prizes + incubation opportunities. Eligibility: Students, startups, and professionals. Link : https://sih.gov.in 10. Smart India Hackathon (SIH) Purpose: Solve real-world challenges through innovation. Funding: Cash prizes + incubation opportunities. Eligibility: Students, startups, and professionals. Link : https://aim.gov.in 11. Stand-Up India Scheme Purpose: Promote entrepreneurship among women and SC/ST communities. Funding: Loans between ₹10 L – ₹1 Cr. Eligibility: Women and SC/ST entrepreneurs starting new businesses. Link : https://standupmitra.in 12. Pradhan Mantri Mudra Yojana (PMMY) Purpose: Provide collateral-free loans to micro and small businesses. Funding: Loans up to ₹10 L (Shishu, Kishor, Tarun categories). Eligibility: Small business owners, startups, and entrepreneurs. Link : https://mudra.org.in 13. SIDBI Fund of Funds for Startups (FFS) Purpose: Provide capital support through Alternative Investment Funds. Funding: Investments routed via VC funds for startups. Eligibility: DPIIT-recognized startups. Link : https://sidbi.in 14. Dairy Entrepreneurship Development Scheme (DEDS) Purpose: Support dairy and allied agribusiness startups. Funding: Subsidies covering up to 25–33% of project cost. Eligibility: Entrepreneurs in dairy sector. Link: https://nabard.org 15. Technology Development Board (TDB) Grants Purpose: Support commercialization of indigenous technology. Funding: Grants/loans for tech-based projects. Eligibility: Tech startups with commercialization-ready ideas. Link : https://tdb.gov.in 16. Design Clinic Scheme for MSMEs Purpose: Support design-led product development for MSMEs. Funding: Up to ₹15 L per project. Eligibility: Registered MSMEs. Link : http://designclinicsmsme.org 17. Support for International Patent Protection in Electronics & IT (SIP-EIT) Purpose: Encourage IP protection in electronics/IT. Funding: Reimbursement up to ₹15 L per patent. Eligibility: Indian startups/innovators. Link : https://meity.gov.in/sip-eit 18. Dairy Processing and Infrastructure Development Fund (DIDF) Purpose: Strengthen dairy sector infrastructure. Funding: Loans with subsidies for processing & storage. Eligibility: Dairy cooperatives/startups. Link: https://nabard.org 19. National Initiative for Developing and Harnessing Innovations (NIDHI-EIR) Purpose: Provide financial support to student innovators. Funding: Monthly fellowships (up to ₹30,000). Eligibility: Student entrepreneurs with validated ideas. Link: https://nidhi.dst.gov.in 20. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Purpose: Provide collateral-free loans for startups. Funding: Credit guarantee up to ₹2 Cr. Eligibility: MSMEs/startups in India. Link : https://cgtmse.in The Future of Startup Funding in India The future of startup funding in India looks extremely promising. In fact, with the government’s push toward “Aatmanirbhar Bharat,” more sector-specific grants are expected to emerge. For example, we may see dedicated schemes for green technology, renewable energy, space startups, and AI-driven solutions in the coming years. Moreover, as India becomes a global innovation hub, these grants will not only help local entrepreneurs but also attract global collaborations. Consequently, the Indian startup ecosystem is set to become more inclusive, diverse, and resilient. The Indian government has created one of the most supportive startup ecosystems in the world, offering funding, mentorship, and incubation opportunities across multiple sectors. Whether you’re building a tech startup, agribusiness, biotech innovation, or AI solution, there’s a scheme designed to fuel your growth. If you’re an entrepreneur in 2025, don’t miss out on these 20 government grants for startups in India. They could be the stepping stone that takes your idea from a prototype to a successful business.
