Government Schemes
Government Support for Entrepreneurs
The Indian government runs several schemes specifically designed to help entrepreneurs start and grow their businesses. From Startup India, which offers tax exemptions and easier compliance for registered startups, to MUDRA Yojana, which provides collateral-free loans up to Rs 10 lakh for micro enterprises, there are options for almost every stage of your business journey.
Other major schemes include PMEGP (Prime Minister Employment Generation Programme), which offers subsidy on project costs for new manufacturing and service units, Stand Up India for SC/ST and women entrepreneurs, and CGTMSE, which provides credit guarantees so you can get bank loans without collateral. State governments also run their own schemes with additional benefits.
Each scheme below includes details on who is eligible, what benefits you get, how to apply, and direct links to the official portals. Understanding which schemes apply to your business type can save you a significant amount of money and make the difference between getting off the ground and staying stuck at the planning stage.
Showing 18 of 20 government schemes
ASPIRE: Innovation & Incubation for MSMEs
Ministry of Micro, Small & Medium Enterprises
A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE) promotes innovation and entrepreneurship in rural and agro-based industries. It sets up Livelihood Business Incubators (LBIs) with financial support up to 1 crore rupees and Technology Business Incubators (TBIs) with support up to 30 lakh rupees to nurture startups in rural areas, especially for SC/ST and women entrepreneurs. ASPIRE focuses on agro-processing, rural handicrafts, traditional industries, and livelihood-generating enterprises that strengthen rural economies. The scheme has supported hundreds of rural entrepreneurs who would otherwise struggle to access mainstream incubation and mentorship platforms concentrated in major cities.
Atal Innovation Mission (AIM)
NITI Aayog
Atal Innovation Mission (AIM) is NITI Aayog's flagship initiative to create and promote a culture of innovation and entrepreneurship across India at both school and startup levels. AIM establishes Atal Tinkering Labs (ATLs) in schools with 20 lakh rupees per lab, Atal Incubation Centres (AICs) at universities with up to 10 crore rupees, and supports startups through the Atal New India Challenge (ANIC) with grants up to 1 crore rupees. Over 10,000 ATLs now operate across Indian schools, reaching millions of students with hands-on STEM and entrepreneurship exposure. AIM has also backed dozens of incubators and hundreds of startups solving nationally important problems.
Credit Guarantee Fund Trust (CGTMSE)
Ministry of Micro, Small & Medium Enterprises
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides collateral-free credit guarantees to micro and small enterprises, operated jointly by the Government of India and SIDBI. Banks can lend up to 5 crore rupees without collateral under CGTMSE coverage. The trust pays the bank up to 75 to 85 percent of the defaulted amount if the borrower defaults, reducing lending risk and making it significantly easier for first-time entrepreneurs to get bank loans. CGTMSE has been a backbone of MSME lending in India since 2000, with over 75 lakh guarantees issued and the coverage ceiling recently raised to broaden access for growing businesses.
Government e-Marketplace (GeM): Sell to Government
Ministry of Commerce and Industry
Government e-Marketplace (GeM) is the official online procurement platform for all central ministries, state governments, departments, and PSUs to buy goods and services. MSMEs and startups can register as sellers on GeM and sell products and services directly to government buyers without intermediaries or traditional tender processes. DPIIT-recognised startups are exempt from prior turnover and experience requirements, which is transformational for new companies trying to win public-sector business. Annual government procurement through GeM exceeds 4 lakh crore rupees, and MSMEs get 25 percent procurement reservation with an additional 3 percent set-aside for women-owned MSMEs.
Digital India / MeitY Startup Hub
Ministry of Electronics and Information Technology (MeitY)
MeitY Startup Hub (MSH) is an initiative of the Ministry of Electronics and Information Technology to build and nurture technology startups across India. MSH provides access to incubation, mentoring, funding, and market connections for startups working in emerging technologies like AI, machine learning, blockchain, IoT, AR/VR, cybersecurity, and deeptech. Programmes under MSH include TIDE 2.0 for Entrepreneur-in-Residence grants up to 7 lakh rupees, and SAMRIDH for accelerator support up to 25 lakh rupees in equity or grants. MSH partners with a network of MeitY-funded incubators across India to deliver local incubation while connecting startups to government pilot opportunities, enterprise customers, and investor networks.
MSME CHAMPION Scheme
Ministry of Micro, Small & Medium Enterprises
The CHAMPION (Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength) scheme is an ICT-based platform by the Ministry of MSME for grievance redressal, handholding, and information dissemination. It consolidates MSME support services under one portal, making it easier for registered enterprises to access information on schemes, raise grievances with banks or government departments, and track resolution status. The system is especially useful for first-generation entrepreneurs who are navigating regulatory processes and payment delays from larger clients. CHAMPION integrates with Udyam Registration and the Samadhaan delayed payment portal.
Pradhan Mantri MUDRA Yojana
Ministry of Finance
MUDRA (Micro Units Development and Refinance Agency) provides collateral-free loans up to 10 lakh rupees to non-corporate, non-farm small and micro enterprises across India. Loans are available in three categories: Shishu (up to 50,000), Kishore (50,001 to 5 lakh), and Tarun (5,00,001 to 10 lakh). Loans are available through all scheduled commercial banks, regional rural banks, small finance banks, microfinance institutions, and NBFC-MFIs. Since its 2015 launch, MUDRA has disbursed over 50 crore loans totalling more than 25 lakh crore rupees, making it one of India's most impactful small business credit programmes.
NSIC Support Schemes
Ministry of Micro, Small & Medium Enterprises
The National Small Industries Corporation (NSIC) provides a range of support services to MSMEs including raw material assistance, single-point registration for government tenders (SPRS), technology support, bill discounting, and marketing assistance. NSIC schemes help small enterprises compete with larger companies by reducing procurement costs, improving market access, and easing cash flow through receivables financing. Under SPRS, NSIC-registered MSMEs enjoy exemption from EMD, free tender sets, and preference in government procurement. NSIC also operates Technical Service Centres across India offering testing facilities, prototype development, and skill training at subsidised rates for small manufacturers.
PM Surya Ghar Muft Bijli Yojana
Ministry of New and Renewable Energy (MNRE)
PM Surya Ghar Muft Bijli Yojana provides central financial assistance for installing rooftop solar systems on residential houses. Households get subsidy of 30,000 rupees for 1 kW, 60,000 rupees for 2 kW, and 78,000 rupees for 3+ kW systems (up to 10 kW). The scheme was launched in 2024 with an ambitious target of enabling solar on 1 crore homes by 2027, and it includes 300 units of free electricity per month for beneficiary households. This creates a massive business opportunity for solar installation entrepreneurs who can register as empanelled vendors with state DISCOMs to earn from installation, maintenance, and referral commissions while the subsidy goes directly to homeowners.
PM SVANidhi: Street Vendor Micro Credit
Ministry of Housing and Urban Affairs
PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) provides affordable micro-credit to street vendors. Vendors can get collateral-free working capital loans of 10,000 (first tranche), 20,000 (second tranche), and 50,000 rupees (third tranche) with 7 percent interest subsidy and cashback incentives for digital transactions. The scheme was launched in 2020 to support street vendors affected by COVID-19 and has since expanded significantly to cover vendors across India. Over 60 lakh street vendors have accessed credit through PM SVANidhi, bringing them into the formal financial system, enabling digital payment adoption, and graduating them into larger MUDRA and PMEGP loans over time.
PM Employment Generation Programme (PMEGP)
Ministry of Micro, Small & Medium Enterprises
PMEGP is a credit-linked subsidy programme administered by the Khadi & Village Industries Commission (KVIC) in coordination with state governments and scheduled banks. It provides margin money subsidy of 15 to 35 percent of the project cost for setting up new micro-enterprises in both manufacturing and service sectors. Maximum project cost is 50 lakh rupees for manufacturing and 20 lakh rupees for service enterprises. The scheme has helped lakhs of first-generation entrepreneurs launch businesses across manufacturing trades, food processing, tailoring, handicrafts, and services, particularly in tier 2 and tier 3 cities where private funding is harder to access.
PM Formalisation of Micro Food Processing Enterprises (PMFME)
Ministry of Food Processing Industries
PMFME (Pradhan Mantri Formalisation of Micro food processing Enterprises) is a centrally sponsored scheme under the Ministry of Food Processing Industries providing financial, technical, and business support to micro food processing enterprises. It offers credit-linked capital subsidy of 35 percent of project cost (maximum 10 lakh rupees) for upgradation, along with support for branding, packaging, and FSSAI compliance. The scheme follows the One District One Product (ODOP) approach, prioritising clusters of producers working with the same raw material or product. FPOs and SHGs also get seed capital of 40,000 rupees per member. PMFME has helped thousands of small food processors, pickle makers, and regional food producers formalise their operations.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Ministry of Skill Development and Entrepreneurship
PMKVY (Pradhan Mantri Kaushal Vikas Yojana) is India's largest skill development scheme, providing free short-term training (150 to 300 hours) and certification aligned with National Skills Qualification Framework (NSQF) standards. Training is delivered through NSDC-affiliated training providers and sector skill councils across hundreds of job roles spanning IT, construction, retail, healthcare, automotive, beauty and wellness, and food processing. Over 1.4 crore candidates have been trained under the scheme, equipping youth with industry-relevant skills for employment or self-employment. Recognition of Prior Learning (RPL) allows experienced workers without formal certification to get their existing skills assessed and certified, which improves employability and wage premiums.
Startup India Seed Fund Scheme (SISFS)
Department for Promotion of Industry and Internal Trade (DPIIT)
The Startup India Seed Fund Scheme (SISFS) provides crucial early-stage financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialisation. A total corpus of 945 crore rupees is distributed through selected incubators across India, making it one of the few substantial grant-plus-debt routes for pre-seed Indian startups. Startups can receive up to 20 lakh rupees as grants for proof of concept and up to 50 lakh rupees as debt or convertible debentures for market entry. SISFS bridges the crucial gap between founder savings and traditional venture capital that funds later stages, and has become a go-to programme for serious first-time founders with technology-led ideas.
SFURTI: Cluster Development for Traditional Industries
Ministry of Micro, Small & Medium Enterprises (through KVIC)
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) organises traditional artisans and producers into clusters to make them competitive and provide sustained employment and improved incomes. It covers khadi, village industries, coir, bamboo, honey, handloom, and handicraft clusters with financial support of 2.5 to 5 crore rupees per cluster for Common Facility Centres, skill development, design intervention, and market linkages. SFURTI is particularly valuable for groups of traditional artisans who lack individual capital but can benefit from shared infrastructure like dyeing units, packaging facilities, or product design studios. The scheme directly supports livelihoods in traditional craft-based communities across India.
SIDBI Make in India Soft Loan (SMILE)
Small Industries Development Bank of India (SIDBI)
SIDBI's SMILE (Make in India Soft Loan for MSMEs) scheme provides soft loans to MSMEs at concessional interest rates for expanding manufacturing and service operations. The scheme directly supports the Make in India initiative by providing affordable finance for technology upgradation, new equipment purchase, capacity expansion, and working capital for micro and small enterprises. SMILE loans come with repayment periods up to 10 years and favourable margin requirements compared to commercial bank loans. The scheme is particularly useful for growing MSMEs that need patient capital for capacity investments with longer payback periods than standard working capital financing provides.
Stand Up India
Department of Financial Services, Ministry of Finance
Stand Up India facilitates bank loans between 10 lakh and 1 crore rupees to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise in manufacturing, services, agri-allied activities, or trading. The scheme was launched in 2016 with the explicit aim of addressing the historical credit gap faced by women and reserved-category entrepreneurs. Loans are composite facilities combining term loan and working capital, with repayment up to 7 years and an 18-month moratorium. CGTMSE coverage enables collateral-free lending under the scheme.
Startup India
Department for Promotion of Industry and Internal Trade (DPIIT)
Startup India is the flagship initiative of the Government of India to build a strong ecosystem for nurturing innovation and startups. Recognised startups get tax exemptions for 3 consecutive years, self-certification compliance across labour and environmental laws, fast-tracked patent applications with 80 percent fee rebate, and access to a Fund of Funds worth 10,000 crore rupees managed by SIDBI. Over 1.4 lakh startups are currently DPIIT-recognised across India, with the ecosystem producing over 100 unicorns. The programme suits first-time founders building innovative products and services who meet the incorporation and turnover thresholds.
EduMetrics aggregates government scheme information from public sources including startupindia.gov.in, msme.gov.in, and other official portals for educational purposes. All scheme names and details belong to their respective government departments.