Explore India’s top government schemes for startups in 2025. Learn about benefits, eligibility, funding amounts, and how to apply.

Introduction: India’s Startup Revolution

India is no longer just a hub for IT outsourcing — it’s a global startup powerhouse. With over 1,20,000 registered startups and 115+ unicorns as of 2025, India ranks among the top three startup ecosystems in the world.

Behind this explosive growth lies a combination of entrepreneurial energy, private capital, and government-backed schemes designed to boost innovation, create jobs, and position India as a leader in global markets.

In this guide, we’ll explore the most important government schemes for startups in 2025 — who they’re for, how they work, and how you can apply.

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1. Startup India Seed Fund Scheme (SISFS)

Objective:

To provide financial assistance to early-stage startups for proof of concept, prototype development, product trials, and market entry.

Key Details:

• Corpus: ₹945 crore (spread over 4 years, till 2025-26)
  
• Funding: Up to ₹20 lakh for proof of concept; up to ₹50 lakh for market entry.
  
• Eligibility:
  
  • DPIIT-registered startup
    
  • Incorporated within last 2 years
    
  • Business idea should have a prototype or MVP (Minimum Viable Product) ready.
    
  • Should not have received more than ₹10 lakh in prior government funding.
    

How to Apply:

• Visit startupindia.gov.in
  
• Apply through a recognized incubator under the scheme.
  
• Upload pitch deck, business plan, and prototype proof.
  

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2. Fund of Funds for Startups (FFS)

Objective:

To increase the availability of venture capital for startups via Alternative Investment Funds (AIFs).

Key Details:

• Corpus: ₹10,000 crore, managed by SIDBI.
  
• Mode of Funding: Government invests in SEBI-registered AIFs, which in turn invest in startups.
  
• Eligibility:
  
  • Startup must be DPIIT-registered.
    
  • Sector-agnostic, but preference for high-growth industries like EVs, AI, health-tech.
    

How to Apply:

• Startups don’t apply directly — instead, approach VC firms backed by the Fund of Funds.
  
• SIDBI provides a list of such VCs on its official site.
  

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3. Credit Guarantee Scheme for Startups (CGSS)

Objective:

To facilitate collateral-free loans to startups through banks and NBFCs.

Key Details:

• Loan Limit: Up to ₹5 crore.
  
• Guarantee Coverage: Up to 80% by the government.
  
• Eligibility:
  
  • DPIIT-registered startup.
    
  • Positive business model with revenue or clear roadmap.
    

How to Apply:

• Approach participating banks/NBFCs.
  
• Submit business plan, GST registration, and financial projections.
  

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4. MSME Champions Scheme

Objective:

To make Indian MSMEs and startups globally competitive by focusing on technology upgradation, market expansion, and skill development.

Components:

1. MSME-SAMADHAN – For grievance redressal of delayed payments.
   
2. MSME-SAMBANDH – For procurement and vendor development.
   
3. MSME-SAMPARK – For recruitment and job matching.
   

Benefits for Startups:

• Subsidized tech adoption.
  
• Participation in international trade fairs.
  

Marketing support.