India’s entrepreneurial energy is at an all-time high—with over 6.05 crore registered startups and 5.93 crore+ MSMEs, contributing to more than 30% of India’s GDP. But what really accelerates this growth? Strategic government support.
In 2025, the Indian government is offering powerful schemes tailored for startups and MSMEs—helping them overcome challenges like funding gaps, regulatory hurdles, lack of tech access, and limited market exposure.
Looking to grow your business with government aid? Get expert help with funding, registration, and documentation.
Why Government Schemes Matter for Startups & MSMEs
From funding and mentorship to tax exemptions and tech grants—government schemes provide:
- Capital for launch and scale
- Market access (domestic & global)
- R&D support and patent assistance
- Mentorship and regulatory relief
- Employment generation incentives
Fact Check: India is the 3rd largest startup ecosystem globally and aims to support 1 million+ startups by 2035.
Learn more about the key differences between startup and MSME business models in this guide on Startup vs SME.
Top Government Schemes for Startups in India
1. Startup India Scheme
- Launched: 2016
- Best for: Early-stage startups
Key Benefits:
- 3-year income tax exemption
- Fast-track patent filing
- Self-certification under 9 laws
- Access to Startup India Seed Fund and Fund of Funds
Eligibility:
- Registered as Private Ltd/LLP/Partnership
- Turnover less than ₹100 crore
- Business less than 10 years old
- Innovative and scalable model
Want to fast-track your journey? Get Startup India certification to unlock scheme eligibility and benefits.
2. MUDRA Loan Scheme (PMMY)
Best for: Micro-entrepreneurs and small startups
Loan Categories:
- Shishu: Up to ₹50,000
- Kishore: ₹50,000 – ₹5 lakh
- Tarun: ₹5 lakh – ₹10 lakh
- 1. Collateral-free loans
- 2. Tailored for women & marginalized sections
- 3. Over ₹31.85 lakh crore disbursed
3. Credit Guarantee Fund (CGTMSE)
Best for: Small businesses needing loans without collateral
Features:
- Credit guarantee up to ₹2 crore
- Applicable to both new and existing MSMEs
- Shared risk between lender and government
Explore more about securing government-backed loans in our detailed blog on how to get funding for startup from government .
4. Stand-Up India
Designed for: SC/ST and women entrepreneurs
Benefits:
- Loans from ₹10 lakh to ₹1 crore
- Greenfield project focus
- Up to 75% project cost covered
- Available via all commercial banks
5. Prime Minister Employment Generation Programme (PMEGP)
- Managed by: KVIC & Ministry of MSME
- Targets: New micro enterprises in rural and urban areas
Benefits:
- Subsidy of 15–35%c
- Loan up to ₹25 lakh for manufacturing, ₹10 lakh for service
- Focus on job creation
6. Atal Innovation Mission (AIM)
- Run by: NITI Aayog
- For: Promoting tech startups, student innovation, and incubators
Support Includes:
- Grants to incubators
- Tinkering labs in schools
- Innovation support for rural tech and agri-tech
7. National Agri Infra Financing Facility
- Perfect for: Agri-tech startups and MSMEs in agriculture
Advantages:
- Access to agri-value chain credit
- Low-cost financing
- NABARD and RBI regulated platforms
8. Prime Minister Micro Food Processing Scheme
- Target: Food-based MSMEs and micro units
Fast-track loan features:
- Loans from ₹1 lakh to ₹5 crore
- Approval within 59 minutes
- Linked with public sector banks
Impact of Government Schemes on Startups & MSMEs
- Over ₹31.85 lakh crore disbursed through Mudra alone
- 1.65+ lakh startups recognized by DPIIT
- 17.6 lakh+ jobs created by Indian startups since 2016
- 2.5 lakh+ MSMEs funded via PM schemes in 2024–25
Get inspired by real examples in our Seed Fund success blog that highlights how startups are using early-stage capital to scale.
Who Should Apply?
These top government schemes are ideal for:
- Women-led enterprises
- First-time founders
- Rural entrepreneurs
- Agri-tech, green-tech, and clean energy ventures
- Export-ready MSMEs
- Retail and manufacturing startups
How to Apply for Government Schemes
1. Visit the Egniol official website: Egniol.co.in
2. Get help from experts and get your MSME registered
3. Select relevant schemes and submit documents online
4. You get Scheme Benefits and other benefits like connecting with experts and leaders for mentorship.
5. Tip: Many businesses also get support from consultancy partners who help with registration, documentation, and funding — saving time and maximizing chances of approval.
- Product-based or creative startups
- Social impact projects
- Early-stage MVP launches
- Pre-order models
Egniol also conducts hands-on MSME training programs to help business owners understand compliance, funding, and growth strategies.
Conclusion: Accelerate Growth with Government Support
These top government schemes for startups and MSMEs in India provide the momentum you need—whether you're launching, scaling, or pivoting your business.
From tax exemptions to collateral-free loans and global market access, the ecosystem is richer than ever in 2025.
FAQs
- Q: Who is eligible for government schemes for startups in India?
A: Startups must be DPIIT-registered, under 10 years old, and have an innovative model with annual turnover under ₹100 crore.
- Q: How can Egniol help in the application process?
A: Egniol offers full consultancy: scheme shortlisting, registration, document filing, business plan creation, and follow-up.
- Q: Are there government schemes exclusively for women entrepreneurs?
A: Yes. Stand-Up India, Udyogini, and state-level schemes offer capital and mentorship to women-led ventures.
- Q:Can MSMEs access startup-focused schemes?
A: Absolutely. Many MSME-focused schemes (like CGTMSE, MUDRA, and PMEGP) are accessible to smaller enterprises with or without tech focus.
- Q: What’s the timeline for loan disbursal?
A: Depending on the scheme, loans are disbursed within 15–45 working days after document verification and approval.
Disclaimer: The information presented in this blog is sourced from various online platforms and government portals.