Government Schemes, Grants & Incentives

India's central and state governments offer a massive support infrastructure for startups — from direct funding and tax holidays to patent subsidies and procurement advantages.

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Central Govt Schemes
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State-Level Programs
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Total Corpus Allocated

Flagship Central Government Schemes

Startup India Initiative
DPIIT, Ministry of Commerce & Industry
Flagship
WhatMaster umbrella for all startup benefits — DPIIT recognition unlocks tax breaks, funding, IPR, and compliance benefits
Tax3-year income tax holiday (Section 80-IAC), angel tax exemption (Section 56(2)(viib))
Self-CertSelf-certification for 9 labour laws and 3 environmental laws
IPR80% rebate on patent filing fees, 50% on trademark fees, fast-track examination
EligibilityEntity incorporated ≤10 years, turnover ≤₹100 Cr in any financial year, working on innovation
Startup India Seed Fund Scheme (SISFS)
DPIIT
Active
Corpus₹945 Crore over 4 years (2021-2025)
GrantsUp to ₹20 lakh for proof of concept / prototype
InvestmentUp to ₹50 lakh via convertible debentures / debt
ViaApproved incubators (300+ across India)
EligibilityDPIIT recognised, incorporated ≤2 years, not received ≥₹10L funding
Fund of Funds for Startups (FFS)
SIDBI / DPIIT
Active
Corpus₹10,000 Crore managed by SIDBI
StructureInvests in SEBI-registered AIFs, which then invest in startups
Deployed₹7,385 Cr committed to 120+ AIFs, catalysing ₹1,05,000 Cr
Impact900+ startups funded indirectly
MUDRA Yojana (Shishu / Kishore / Tarun)
Ministry of Finance
Active
ShishuLoans up to ₹50,000 for micro businesses
KishoreLoans ₹50,001 to ₹5 lakh for growing businesses
TarunLoans ₹5 lakh to ₹10 lakh for established enterprises
CollateralNo collateral required. Available via all major banks.
Atal Innovation Mission (AIM)
NITI Aayog
Active
ProgramsATL (schools), AIC (incubators), ANIC (challenges), ARISE (research)
AIC GrantUp to ₹10 Cr over 5 years for establishing incubators
ANICUp to ₹1 Cr grant to startups solving sectoral challenges
ATLs10,000+ tinkering labs in schools across India
BioNEST & BIRAC Programs
Department of Biotechnology
Active
BIGBiotechnology Ignition Grant: Up to ₹50 lakh for biotech startups
SPARSHSocial innovation grants for affordable healthcare
BIPPIndustry partnership for advanced biotech R&D (₹5Cr+)
Network60+ BioNEST incubators across India

Tax Benefits & Incentives

Section 80-IAC — Income Tax Holiday
Income Tax Act
Tax
Benefit100% tax exemption on profits for 3 consecutive years out of first 10 years
TurnoverAnnual turnover must not exceed ₹100 Cr in the claim year
EligibilityMust be DPIIT recognised. Certified by Inter-Ministerial Board.
Angel Tax Exemption — Section 56(2)(viib)
CBDT
Tax
BenefitExemption from "angel tax" on share premium received from investors
UpdateBudget 2024 abolished angel tax entirely for all classes of investors
ImpactMajor relief for early-stage funding rounds
Section 54GB — Capital Gains Exemption
Income Tax Act
Tax
BenefitLong-term capital gains exemption when reinvested in eligible startups
ConditionInvestment must be used for purchase of assets by the startup
Carry Forward of Losses — Section 79
Income Tax Act
Tax
BenefitStartups can carry forward losses even if shareholding changes by >51%
ConditionAll original shareholders must continue to hold shares. Valid for 7 years from incorporation.

IP, Patents & Procurement Benefits

Patent Fee Rebate for Startups
CGPDTM / DPIIT
IP
Patent80% rebate on patent filing fees
Trademark50% rebate on trademark application fees
Fast-trackExpedited patent examination within 6-12 months vs 5-7 years
FacilitationGovernment-appointed facilitators for patent/TM filing assistance
Govt Procurement Relaxation (GeM)
Ministry of Commerce
Procurement
BenefitStartups exempt from prior turnover and prior experience criteria for govt tenders up to ₹25 Cr
PlatformListed on Government e-Marketplace (GeM) with startup tag
EMDEarnest money deposit exemption for govt tenders

Sector-Specific Schemes

PLI Scheme (Production-Linked Incentive)
Multiple Ministries
Active
Corpus₹1.97 lakh crore across 14 sectors
SectorsElectronics, auto, pharma, textiles, telecom, solar, drones, semiconductors, EV, ACC batteries, steel, etc.
Incentive4-6% of incremental sales for 5-6 years
FAME II (EV & Green Mobility)
Ministry of Heavy Industries
Active
Budget₹10,000 Crore for EV adoption and charging infrastructure
SubsidyUp to ₹1.5 lakh per e-2W, ₹3 lakh per e-3W, ₹20 lakh per e-bus
ChargingSubsidy for EV charging station setup
India Semiconductor Mission (ISM)
MeitY
Active
Budget₹76,000 Crore for semiconductor ecosystem
SubsidyUp to 50% of project cost for fabs, ATMP, and design companies
DLIDesign Linked Incentive: Up to ₹15Cr for chip design startups
IndiaAI Mission
MeitY
Active
Budget₹10,372 Crore for AI ecosystem development
Compute10,000+ GPU compute capacity for startups and researchers
ProgramsIndiaAI FutureSkills, IndiaAI Datasets Platform, IndiaAI Innovation Centre
Stand-Up India (Women & SC/ST)
Ministry of Finance
Inclusive
Loan₹10 lakh to ₹1 Crore for women / SC/ST entrepreneurs
PurposeGreenfield enterprise in manufacturing, services, agri-allied, or trading
RateBase rate + 3% + tenor premium. Repayment up to 7 years.
SIDBI — Women Enterprise Fund
SIDBI
Inclusive
LoanUp to ₹25 lakh for women-owned micro enterprises
RateConcessional interest rates, no collateral for smaller amounts
Add-onBusiness mentoring and capacity building support included
NIDHI (National Initiative for Development of Incubators)
DST
Active
EIREntrepreneur-in-Residence: ₹30,000/month fellowship for 18 months
PRAYASUp to ₹10 lakh for idea-to-prototype development
Seed SupportUp to ₹1 Cr equity/debt per startup via approved incubators
Accelerator₹25 lakh-₹1 Cr for scale-up stage startups
PMFME (Food Processing)
Ministry of Food Processing
Active
Grant35% subsidy (max ₹10 lakh) for micro food processing enterprises
ScopeExpansion, technology upgrade, branding, and marketing for food startups

How to Get DPIIT Recognition

DPIIT recognition is the gateway to all central government benefits. It's free and takes 2-5 working days online.

1️⃣

Register on the Startup India portal with your entity details

2️⃣

Upload Certificate of Incorporation & brief description of innovation

3️⃣

Get DPIIT recognition number within 2-5 days

4️⃣

Apply for tax benefits, SISFS, patent rebates, and more

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