Starting a business can be exciting, but it also requires capital. If you're wondering how to get funding for a startup from the government, you're in the right place.
In India, several government schemes provide startup funding through grants, loans, and incentives, designed to support innovation and entrepreneurship.
This guide will walk you through the best government schemes, eligibility criteria, and a step-by-step application process to help you secure government funding for your startup in 2025.
Types of Government Funding Available for Startups
1. Startup Grants
Non-repayable financial assistance given to promote innovation and R&D.
Example: Startup India Seed Fund Scheme – Offers grants up to ₹50 lakh for product development and MVP creation.
Learn more about Government Grants for Startups and how to apply effectively.
2. Government Loans for Startups
Low-interest, collateral-free loans designed for micro and small enterprises.
Example: MUDRA Loan Scheme – Provides up to ₹10 lakh funding under Shishu, Kishor, and Tarun categories.
Explore all available Government Business Loan Options for startups and MSMEs.
3. Equity-Based Government Funding
Government-backed funds that invest in startups in exchange for equity.
Example: Fund of Funds for Startups (FFS) – Operated by SIDBI with a ₹10,000 crore corpus.
4. Subsidies and Incentives
Reductions in costs like infrastructure, electricity, or taxes for eligible startups.
Example: MSME Subsidy Schemes – For tech upgrades and infrastructure development.
Get financial assistance through specialized MSME Loan Schemes.
Other Types of Manufacturing Grants
1. Government Grants for Manufacturing
Governments across the globe offer funding schemes to help manufacturers adopt new technology, improve processes, and generate employment.
Example: In the U.S., the Manufacturing Extension Partnership (MEP) assists small and medium-sized manufacturers with funding, consulting, and training.
In India, several central and state programs offer assistance. Some of these schemes are similar in structure to those available for agribusiness enterprises, supporting key industries through subsidies and incentives.
2. Manufacturing Startup Funding
Startups in the manufacturing sector can tap into funding opportunities tailored for prototyping, R&D, and early-stage development.
Example: NIDHI-PRAYAS (India) – Supports prototyping and product development.
Startup India Seed Fund Scheme – Offers capital to manufacturing-focused startups for PoC and market launch.
3. Sustainability & Green Manufacturing Grants
If your business emphasizes sustainability, you may qualify for green manufacturing grants that support energy efficiency, waste reduction, and climate-resilient production.
Example: The Clean Energy Manufacturing Initiative (U.S.) provides funding to manufacturers shifting to renewable or energy-saving practices.
4. Regional and Local Manufacturing Grants
Many state-level and local governments offer manufacturing grants for small business development in specific sectors or regions.
Example: The UK Government provides manufacturing grants in sectors like aerospace, defense, and advanced automotive manufacturing.
In India, specific industries such as textile manufacturing receive specialized grants for modernization, export promotion, and skill development.
Top Government Schemes to Fund Your Startup in 2025
If you're researching how to get funding for startup from government, these are the most impactful schemes:
Startup India Seed Fund Scheme (SISFS)
- Funding up to ₹50 lakh for early-stage startups
- Focus: Proof of concept, product trials, MVP
Don’t forget to apply for your Startup India Certification to unlock these benefits.
Pradhan Mantri MUDRA Yojana (PMMY)
- Loans up to ₹10 lakh
- No collateral required
- Three categories: Shishu, Kishor, Tarun
SIDBI Fund of Funds for Startups (FFS)
- Equity infusion through Alternate Investment Funds (AIFs)
- Total corpus: ₹10,000 crore
Credit Guarantee Fund Trust for MSEs (CGTMSE)
- Loans up to ₹2 crore with credit guarantee
- Ideal for MSMEs and startups needing working capital
Stand-Up India Scheme
- ₹10 lakh to ₹1 crore loan
- For women and SC/ST entrepreneurs
How to Apply for Government Startup Funding (Step-by-Step)
Step 1: Choose the Right Funding Scheme
Research funding programs aligned with your business sector, size, and goals.
Step 2: Prepare a Business Plan
Include:
- Revenue model
- Projected financials
- Problem-solution fit
- Innovation & scalability
Step 3: Register Your Startup
- Register on Startup India Portal
- Complete Udyam/MSME registration (if applicable)
Step 4: Submit the Application
- Apply through respective portals (Startup India, SIDBI, MSME)
- Attach documents:
- Business plan
- Financial projections
- Legal certificates
Step 5: Follow Up and Ensure Compliance
- Regularly check application status
- Reply to authority queries promptly
- Adhere to scheme-specific compliance norms
Documents Required to Get Government Funding for Your Startup
To avoid delays, ensure you have these key documents:
- Business Registration Certificate
- PAN & Aadhar Card of Founder(s)
- Udyam/MSME Registration (if applicable)
- Detailed Business Plan
- 6–12 Months Bank Statement
- Past 2 Year's ITR (if applicable)
Common Mistakes to Avoid While Applying
- Submitting incomplete documents
- Skipping eligibility checks
- Poorly written or unclear business plan
- No follow-up post-application
- Ignoring scheme-specific guidelines
FAQs – How to Get Funding for Startup from Government
- Can I get startup funding from government without collateral?
Yes. Schemes like MUDRA and CGTMSE offer collateral-free loans.
- Is there any government grant for tech startups?
Yes. The Startup India Seed Fund Scheme offers up to ₹50 lakh for tech innovation.
- Do I need to repay government startup grants?
No. Grants are non-repayable, unlike loans.
- How long does it take to get approval?
Generally, between 4 to 8 weeks, depending on scheme and document verification.
Final Thoughts: Secure Government Funding to Fuel Your Startup
Learning how to get funding for startup from government is one of the smartest moves for any entrepreneur in 2025. With multiple schemes tailored for early-stage ventures, women-led startups, tech innovators, and small businesses, the government is actively promoting the startup ecosystem.
Focus on preparing a compelling business plan, selecting the right scheme, and completing the documentation. Government startup funding can help you launch, grow, and scale—without giving up equity or taking on heavy-interest debt.
For more expert insights, check out our detailed article on business funding strategies for startups.
Disclaimer: The information presented in this blog is sourced from various online platforms and government portals.