India has rapidly emerged as one of the world’s leading startup ecosystems, ranking third globally in terms of the number of startups. With over 100,000 recognized startups and more than 100 unicorns as of 2025, this vibrant ecosystem is a critical driver of economic growth, employment, and innovation. While the entrepreneurial spirit is thriving, the success of many startups is made possible by a robust framework of government support that spans from seed-stage funding to international expansion.
This article explores how the Indian government has strategically empowered startups at every stage of their journey, right from ideation to scaling globally through policy interventions, financial assistance, incubation, market access, and more.
Launched in January 2016, the Startup India initiative is the cornerstone of government support for entrepreneurs. It was introduced with the aim to build a strong ecosystem that nurtures innovation and transforms India into a country of job creators instead of job seekers.
As of 2025, more than 110,000 startups have been recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), signifying their eligibility for a suite of benefits and financial incentives.
Recognizing that access to early-stage funding is critical for startups, the Startup India Seed Fund Scheme (SISFS) was launched in April 2021 with an outlay of ₹945 crore over four years.
This scheme has significantly helped first-generation entrepreneurs with risk capital at the idea stage, without requiring collateral or equity dilution.
Implementing Agency: Department for Promotion of Industry and Internal Trade (DPIIT)
Eligibility: The startup must be DPIIT-recognized and not older than two years at the time of application. It must not have received over ₹10 lakh in financial support under any other Central or State government scheme.
Application Process: Applications can be submitted online via the official Startup India Seed Fund portal.
The MUDRA (Micro Units Development and Refinance Agency) scheme is designed to fund the unfunded. It caters to micro-entrepreneurs through three tiers of loans Shishu, Kishor and Tarun.
With no requirement for collateral, these loans are accessible to new entrepreneurs across sectors such as manufacturing, retail, food processing, and services. MUDRA loans have been instrumental in fostering grassroots entrepreneurship and encouraging local businesses to grow into formalized startup entities.
Implementing Agency: Ministry of Finance
Eligibility: Any Indian entrepreneur operating or intending to operate a micro or small enterprise in manufacturing, trading, or services.
Application Process: Applicants may approach any participating bank or financial institution. Applications can also be submitted via mudra.org.in
The Atal Innovation Mission, under NITI Aayog, is India’s flagship program to promote innovation and entrepreneurship. It supports over 70 Atal Incubation Centres (AICs) and more than 10,000 Atal Tinkering Labs (ATLs).
These centers act as launch pads for startups by providing the ecosystem needed to turn ideas into viable products.
Implementing Agency: NITI Aayog
Application Process: Interested startups must approach AICs for incubation. More information is available at aim.gov.in.
For biotech and life sciences startups, the Biotechnology Industry Research Assistance Council (BIRAC) offers the Biotechnology Ignition Grant (BIG).
This grant is especially important in sectors like healthcare, agriculture, environment, and bio-energy, where the gestation period is longer and capital requirements are high.
Eligibility: Indian citizens and Indian startups (not older than five years). The project must be innovative and based on biotechnology applications.
Application Process: Calls for proposals are periodically announced. Interested applicants may apply through birac.nic.in.
To encourage innovation in high-tech sectors, the Ministry of Electronics and IT provides reimbursement support for international patent filings.
This initiative is crucial for deep-tech startups and helps Indian innovations gain recognition and protection in global markets.
Implementing Agency: Ministry of Micro, Small and Medium Enterprises (MSME)
Eligibility: Registered MSMEs and startups operating under host institutions approved by the Ministry.
Application Process: Applications can be submitted at innovative.msme.gov.in.
The Stand-Up India Scheme focuses on promoting entrepreneurship among women, and SC/ST entrepreneurs.
This scheme fosters inclusive growth and enables underrepresented communities to participate in India’s startup revolution.
Implementing Agency: Department of Financial Services
Eligibility: SC/ST or woman entrepreneur aged 18 years or above. Must be establishing a greenfield enterprise in manufacturing, trading, or services.
Application Process: Applications can be submitted via standupmitra.in or at any participating bank branch.
The CGTMSE provides credit guarantees to banks and financial institutions, allowing them to offer collateral-free loans to startups and MSMEs.
This mechanism has significantly reduced the financing gap for early-stage startups, especially in Tier 2 and Tier 3 cities.
Implementing Agency: Ministry of MSME and SIDBI
Objective: To facilitate collateral-free credit to new and existing micro and small enterprises.
Eligibility: All new and existing micro and small enterprises eligible for institutional credit.
Application Process: Applications must be routed through participating banks or NBFCs. More details can be found at cgtmse.in.
The government is also assisting startups to expand internationally through schemes such as:
Through trade missions, soft landing programs, and government-supported incubators abroad, startups are provided a launchpad to scale beyond India.
From the inception of a business idea to becoming a globally competitive enterprise, Indian startups today have access to an unparalleled level of support from the government. The ecosystem is not only thriving in major metropolitan cities but is also expanding into smaller towns and rural regions, thanks to digital connectivity and inclusive schemes.
As India moves towards becoming a $5 trillion economy, the role of startups will be central to this growth. And with the right policies and continued government backing, the dream of taking Indian startups from seed fund to global scale is not just a possibility, it’s a reality in motion.