Government Schemes for Startups in India (2026): Full List, Status and How to Apply

By IYEC Editorial Team | Last updated: 8 October 2026  |  14 min read

India has more government support for founders than ever before. But most guides on schemes for startups in India are out of date. They list schemes that have closed, limits that have changed, and tax rules that were renamed in 2026.

This guide gives you the real picture. You will see every major scheme for startups in India, what each one gives, who qualifies, how to apply, and, most importantly, whether it is open right now. Every fact here was checked against official sources in October 2026.

Schemes for Startups in India at a Glance (Status: October 2026)

Here is every major scheme in one table, with its real status as of October 2026.

Status changes often. Always confirm on the official portal before you apply.

Step One: Get DPIIT Startup Recognition

DPIIT recognition is the entry ticket to most government schemes for startups in India. It is free and fully online, and India had over 2.23 lakh recognized startups as of 31 March 2026, with more than 55,200 recognized in FY26 alone.

Who counts as a startup (2026 rules)?

On 4 February 2026, DPIIT replaced the 2019 definition with Notification G.S.R. 108(E).

Your business must also be working on innovation, improving a product or service, or running a scalable model. A sole proprietorship cannot apply. If that is you, register a company or LLP first. Our guide on how to register a startup in India shows the steps.

How to apply

1. Register on the National Single Window System (nsws.gov.in).

2. Choose "Registration as a Startup" under central approvals.

3. Fill in your details and explain clearly what is innovative or scalable about your business.

4. Upload your incorporation certificate, entity PAN, and proof, such as a pitch deck or website.

5. Track the status online and download your certificate.

Benefits of recognition

• Access to CGSS, the tax holiday, and other startup schemes

• Self-certification under several labor and environmental laws

• Lower patent and trademark fees, plus faster patent examination

• Relaxed turnover and experience rules in public procurement

Funding and Credit Schemes for Startups in India

These are the main central schemes for startups in India that put money, or credit, into your business.

1. Credit Guarantee Scheme for Startups (CGSS)

CGSS lets DPIIT-recognized startups get loans without collateral, because the government guarantees the lender against default.

• Limit: guarantee cover up to ₹20 crore per startup (raised from ₹10 crore in May 2025).

• Cover: 85% of the default amount for loans up to ₹10 crore, 75% above that.

• Fee: reduced to 1% a year for startups in 27 champion sectors.

• Lenders: scheduled banks, NBFCs, and SEBI-registered venture debt funds.

• How to apply: ask your lender to cover the loan under CGSS. It is run by NCGTC.

2. Startup India Fund of Funds 2.0

On 14 February 2026, the Union Cabinet approved a fresh ₹10,000 crore Fund of Funds. SIDBI puts this money into SEBI-registered venture capital funds, which then invest in startups.

The first Fund of Funds (2016) backed 145 funds that invested over ₹25,500 crore in more than 1,370 startups. Version 2.0 focuses on deep tech, innovation-led manufacturing, early-growth founders and startups outside the big metros. You cannot apply directly. You pitch to VC funds that hold SIDBI money. Our guides on building a pitch deck and angel investors vs VCs will help.

3. Startup India Seed Fund Scheme (SISFS): closed for now

SISFS was the best-known grant for very early startups, but it closed for applications on 31 May 2026, and no new cycle had been announced as of October 2026.

We still explain it because many founders search for it, and it may return. Under the ₹945 crore scheme, incubators gave eligible startups:

• Up to ₹20 lakh as a grant for proof of concept, prototypes, and product trials

• Up to ₹50 lakh as debt or convertible debentures for market entry and scaling

• Eligibility: DPIIT-recognized, incorporated within 2 years, Indian promoters holding at least 51%, and not more than ₹10 lakh from other government schemes

What to do instead: look at sector grants (below), state seed funds, and incubator programs. IYEC's Find Funding tool shows which ones are open for your startup today.

Loan Schemes for Small Businesses and First-Time Founders

Not all schemes for startups in India need DPIIT recognition. These loan schemes do not, so they suit early founders and small businesses.

4. Pradhan Mantri MUDRA Yojana (PMMY)

MUDRA gives collateral-free loans to non-farm micro businesses through banks, NBFCs and microfinance institutions.

5. Prime Minister's Employment Generation Programme (PMEGP)

PMEGP gives a margin money subsidy of 15% to 35% of the project cost for new microenterprises, with the rest as a bank loan. Projects can go up to ₹50 lakh in manufacturing and ₹20 lakh in services. Apply online on the KVIC portal.

6. Stand-Up India (revamp pending)

The original Stand-Up India scheme gave bank loans of ₹10 lakh to ₹1 crore to SC, ST, and women entrepreneurs for first-time businesses, and it ended on 31 March 2025.

The Budget had announced term loans of up to ₹2 crore for 5 lakh first-time women, SC and ST entrepreneurs, and in March 2026 the Finance Minister told Parliament a revamped scheme is being prepared. As of October 2026, it has not been notified. Register on standupmitra.in for guidance and watch for the launch.

Grants for Tech and Deep Tech Startups

If you are building technology, these grant schemes for startups in India can fund your early research and prototype.

7. BIRAC Biotechnology Ignition Grant (BIG)

BIG gives up to ₹50 lakh as a grant for biotech and medtech ideas, spread over 18 months. Calls open twice a year, on 1 January and 1 July, and usually stay open for about 45 days.

8. NIDHI-PRAYAS

NIDHI-PRAYAS, under the Department of Science and Technology, gives up to ₹10 lakh to build a prototype of a physical product. You apply through an approved PRAYAS center, usually a technology business incubator.

9. Other grant programs

• Atal Innovation Mission: Atal Incubation Centers and innovation challenges.

• Ministry challenges: Ministries such as MeitY and Defence (through iDEX) run grant challenges for startups.

• State seed funds: many states give their own seed grants and sustenance allowances (see below).

Tax Benefits for Startups in India

Tax relief is one of the most valuable schemes for startups in India once you start making profits.

10. The 3-year startup tax holiday (Section 140, earlier 80-IAC)

An eligible startup can deduct 100% of its profits for any 3 consecutive years out of its first 10 years. From 1 April 2026, this benefit is in Section 140 of the new Income-tax Act, 2025. Earlier it was Section 80-IAC.

• Only companies and LLPs qualify, incorporated on or after 1 April 2016 and before 1 April 2030.

• Turnover must not exceed ₹100 crore in the year you claim. This is separate from the ₹200 crore DPIIT limit.

• You need a certificate from the Inter-Ministerial Board (IMB), applied for on the Startup India portal.

• Your accounts must be audited.

Angel tax removed.

The angel tax was abolished for all classes of investors from the Union Budget 2024. Startups no longer pay tax on share premium above fair value when they raise money.

ESOP tax deferral

Employees of eligible startups can defer tax on ESOPs instead of paying it as soon as shares are allotted. This makes equity offers easier for early teams.

What Budget 2026-27 Changed for Startups

The Union Budget presented on 1 February 2026 added more schemes for startups in India and for small businesses:

• Fund of Funds for startups: ₹10,000 crore, later approved by the Cabinet on 14 February 2026 as Fund of Funds 2.0.

• Deep Tech Fund of Funds: proposed for research-heavy startups.

• SME Growth Fund: ₹10,000 crore for growing small and medium businesses.

• Self-Reliant India Fund: a ₹2,000 crore top-up for micro enterprises.

• Deep Tech recognition: a longer 20-year window and ₹300 crore turnover limit, set by the February 2026 DPIIT notification.

State Startup Policies Worth Checking

Most states run their own schemes for startups in India, and they are often easier to get because fewer founders apply. Common state benefits include seed grants, monthly sustenance allowances for student founders, lease rent subsidies, SGST reimbursement and patent cost reimbursement.

Examples include Uttar Pradesh, Rajasthan, Kerala, Karnataka and Maharashtra, each with its own startup portal. Benefits and windows change often, so check your state portal or let IYEC's Find Funding tool filter schemes by your state.

Which Scheme Fits Your Stage?

Not all schemes for startups in India suit every stage. Use this table to start with the right ones.

How to Apply for Schemes for Startups in India

Most schemes follow the same basic path. Get these steps right and every application becomes easier.

1. Pick the right structure. Register a Pvt Ltd company or LLP if you want DPIIT benefits.

2. Get DPIIT recognition on nsws.gov.in. It is free.

3. Get Udyam (MSME) registration if you plan to use MSME loans or subsidies. It is also free.

4. Check your eligibility for each scheme: age, turnover, sector, state and earlier government funding.

5. Prepare your documents: incorporation certificate, PAN, pitch deck, financials and a clear fund-use plan.

6. Apply on the official portal for that scheme, or through your lender or incubator.

7. Track and follow up. Reply to queries quickly. Most delays come from missing papers.

7 Mistakes That Get Applications Rejected

IYEC's team sees documentation errors as the most common reason funding applications fail. Avoid these:

1. Applying before you are eligible: no DPIIT certificate, no Udyam, or the wrong entity type.

2. Wrong structure: a proprietorship cannot get DPIIT recognition, and a partnership firm cannot claim the tax holiday.

3. A vague innovation note: explain the problem, what is new and why it can grow.

4. Mismatched documents: names, dates and addresses must match across PAN, incorporation and bank records.

5. No fund-use plan: show how each rupee gets you to the next milestone.

6. Ignoring earlier grants: some schemes limit how much other government money you have taken.

7. Using old information: schemes close and limits change. Check the official portal first.

How IYEC Helps You Find the Right Scheme

Reading about all the schemes for startups in India is one thing. Knowing which ones you actually qualify for is another. IYEC  Find Funding Opportunity tool asks for your entity type, sector, state, incorporation date, DPIIT and Udyam status, stage and funding need, then shows only the government, semi-government and private schemes you are eligible for, with links to the official portals.

• [Services](https://iyec.in/services): company registration, DPIIT recognition and Udyam registration at member rates.

• [Mentors](https://iyec.in/mentors): 1:1 advice on which scheme suits your stage.

• [Accelerator](https://iyec.in/accelerator): investor preparation and demo days when you are ready for VC funding.

• [Campus Chapter](https://iyec.in/campus-chapter): for students who want to go from idea to registered startup.

IYEC has helped facilitate over ₹2 crore in funding for startups across 28 cities and 50+ universities.

Final Thoughts

Schemes for startups in India can save you lakhs of rupees, but only if you apply for the right ones at the right time. Get DPIIT recognition first, match each scheme to your stage, keep your documents clean, and always check the live status before you apply.

Government money works best alongside private funding. Read our guides on how to raise startup funding in India and the top sources of startup funding.

Disclaimer: IYEC does not run any government scheme and has no role in approvals. Details here are based on official public information as of 8 October 2026 and can change without notice. This is not legal, tax or financial advice. Please check the official portal or a qualified advisor before applying.