Top 10 Government Schemes for Startups in India 2026

India has built one of the world’s fastest-growing startup ecosystems, supported by multiple central government schemes. In 2026, entrepreneurs can access funding, tax benefits, credit guarantees, incubation support, and market linkage through various government initiatives.

 

This detailed guide explains the Top 10 Government Schemes for Startups in India in 2026, including eligibility, benefits, and funding details.

 

Startup India Initiative

 

The Startup India is the flagship program launched by the Government of India to promote innovation and entrepreneurship.

 

• Key Benefits:

1. DPIIT recognition for startups

2. Tax exemptions under Section 80-IAC

3. Faster patent filing

4. Self-certification compliance

5. Access to government tenders

• Eligibility:

1. Company incorporated in India

2. Less than 10 years old

3. Annual turnover below prescribed limit

4. Working toward innovation or improvement of products/services

• Best for:

1. Technology-driven startups

2. Scalable business models

 

Startup India Seed Fund Scheme (SISFS)

 

The Startup India Seed Fund Scheme supports early-stage startups through incubators.

 

• Funding:

1. Up to Rs. 20 lakh for prototype development (grant)

2. Up to Rs. 50 lakh for commercialisation

• Best for:

1. Idea-stage and early-stage startups

 

Atal Innovation Mission (AIM)

 

The Atal Innovation Mission, launched by NITI Aayog, promotes innovation and entrepreneurship.

 

• Key Support:

1. Atal Incubation Centers

2. Mentorship programs

3. Innovation challenges

4. Funding support through incubators

• Best for:

1. Students

2. Research-based startups

3. Tech innovators

 

Stand-Up India Scheme

 

The Stand-Up India Scheme provides financial support to SC/ST and women entrepreneurs.

 

• Loan Amount:

1. Rs. 10 lakh to Rs. 1 crore

• Features:

1. Greenfield projects only

2. Repayment up to 7 years

3. Credit guarantee support

• Best for:

1. Women-led startups

2. SC/ST entrepreneurs

 

Pradhan Mantri Mudra Yojana (PMMY)

 

The Pradhan Mantri Mudra Yojana offers collateral-free loans to micro and small businesses.

 

• Loan Categories:

1. Shishu: Up to Rs. 50,000

2. Kishore: Rs. 50,000 to Rs. 5 lakh

3. Tarun: Rs. 5 lakh to Rs. 10 lakh

• Best for:

1. Small-scale startups

2. Service and trading businesses

 

The Credit Guarantee Fund Trust on Micro and Small Enterprises (CGTMSE)

 

The Credit Guarantee Fund Trust for Micro and Small Enterprises provides credit guarantee cover to banks for collateral-free loans.

 

• Loan Coverage:

1. Up to Rs. 2 crore

• Benefit:

1. Easier loan access without collateral

• Best for:

1. MSMEs

2. Asset-light startups

 

Fund of Funds for Startups (FFS)

 

The Fund of Funds for Startups is managed by Small Industries Development Bank of India.

 

• Purpose:

1. Invests in SEBI-registered Alternative Investment Funds

2. These funds then invest in startups

• Best for:

1. High-growth startups

2. VC-backed businesses

 

Prime Minister’s Employment Generation Programme (PMEGP)

 

The Prime Minister's Employment Generation Programme is implemented by the Khadi and Village Industries Commission.

 

• Subsidy:

1. 15% to 35% of project cost

• Best for:

1. Rural entrepreneurs

2. Manufacturing and service startups

 

MSME Innovative Scheme

 

The MSME Innovative Scheme promotes innovation, incubation, and IP support.

 

• Benefits:

1. Financial assistance for incubation

2. Design support

3. Patent filing assistance

• Best for:

1. Product innovators

2. Technology MSMEs

 

National SC-ST Hub

 

The National SC-ST Hub supports entrepreneurs from SC/ST communities.

 

• Support Includes:

1. Capacity building

2. Market linkage

3. Financial assistance guidance

• Best for:

1. SC/ST entrepreneurs

2. Government procurement suppliers

 

Comparison Table of Top Startup Schemes 2026

 

 

How to Choose the Right Scheme

 

• Choose based on:

1. Stage of business (idea, early, growth)

2. Founder category (Women, SC/ST, General)

3. Funding requirement

4. Sector focus

5. Need for grant vs loan

 

Conclusion

 

In 2026, India offers a strong ecosystem of government schemes that provide grants, loans, credit guarantees, incubation, tax benefits, and venture funding support. From idea-stage funding under Startup India Seed Fund to large-scale funding through the Fund of Funds, entrepreneurs have multiple pathways to finance and grow their ventures.

 

Understanding eligibility and preparing proper documentation significantly improves approval chances.

 

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