Top 10 Government Grants & Funding Schemes for Indian Startups 2026

Get up to ₹40 Lakhs in Equity-Free Funding • Zero Dilution • Direct Application Links

Why Government Funding Matters for Your Startup

In 2026, the Indian government has allocated over ₹10,000 crores across various schemes to support startups. Unlike VC funding, government grants are equity-free—meaning you don't dilute ownership. This guide lists the top 10 schemes with direct application links, eligibility criteria, and funding amounts.

Who should apply: Early-stage startups, women entrepreneurs, SC/ST founders, tech startups, and MSME businesses.

Naraway Top 10 Government Grants & Funding Schemes for Indian Startups 2026

1. SISFS - Startup India Seed Fund Scheme

Funding: Up to ₹20 Lakhs (Grant) + ₹50 Lakhs (Debt/Convertible)
Ministry: DPIIT, Ministry of Commerce
Total Budget: ₹945 Crores

SISFS is the largest government seed funding scheme in India, designed to provide financial assistance for proof of concept, prototype development, product trials, and market entry.

✅ Eligibility Criteria

  • Startup must be DPIIT-registered
  • Incorporated not more than 2 years ago
  • Should have an innovative business idea with market fit
  • Technology-driven product or service
  • Indian promoters must hold at least 51% equity
  • Should not have received more than ₹10 lakh from other government schemes

💰 What You Get

  • ₹20 Lakhs as Grant: For proof of concept, prototype development, product trials (non-repayable)
  • ₹50 Lakhs as Investment: Via convertible debentures or debt for market entry and scaling
  • Support provided through 300+ accredited incubators across India
  • No collateral or personal guarantee required

📝 How to Apply

Step 1: Get DPIIT Recognition at startupindia.gov.in

Step 2: Apply through eligible incubators at seedfund.startupindia.gov.in

Step 3: Incubators select startups based on potential and provide funding

Apply for SISFS →

2. GENESIS EIR - Gen-Next Support for Innovative Startups

Funding: Up to ₹10 Lakhs (Grant) + ₹40 Lakhs (Pilot Funding)
Ministry: MeitY (Ministry of Electronics & IT)
Focus: Tier 2 & Tier 3 Cities

GENESIS EIR (Entrepreneur-in-Residence) supports tech startups in smaller cities with funding, mentorship, and infrastructure to validate and scale innovative ideas.

✅ Eligibility Criteria

  • Indian citizen, 18+ years old
  • Full-time UG/PG student with entrepreneurial pursuits OR founder of DPIIT-registered startup (≤ 2 years old)
  • First-generation entrepreneur
  • Startup in ideation, validation, or early stage
  • Total external funding not exceeding ₹10 lakh
  • Focus on tech domains: AI/ML, IoT, Blockchain, VLSI, Cybersecurity, AR/VR
  • Registered in Tier 2 or Tier 3 city (preference)

💰 What You Get

  • ₹10 Lakhs Grant: For prototype development, market research, customer validation
  • ₹40 Lakhs Pilot Funding: For startups with market-ready products
  • Mentorship from industry experts
  • Access to state-of-the-art labs and co-working spaces
  • Networking with investors and corporates

📝 How to Apply

Apply through MeitY-approved incubators like:

Apply for GENESIS EIR →

3. SAMRIDH - Startup Accelerator of MeitY

Funding: Up to ₹40 Lakhs (Matching Investment)
Ministry: MeitY
Target: 300 Tech Startups

SAMRIDH accelerates product-based IT startups by providing funding, customer connections, investor introductions, and international market access.

✅ Eligibility Criteria

  • DPIIT-registered Indian startup
  • Working MVP/POC with minimum TRL 3 (Technology Readiness Level)
  • Product-based software/electronics startup
  • Indian promoters hold at least 51% equity
  • Full-time CEO and market-ready product
  • Seeking funds for business development and commercialization

💰 What You Get

  • ₹40 Lakhs Investment: Through selected accelerators as matching co-investment
  • 6-month intensive acceleration program
  • Customer connect with corporates and PSUs
  • Investor connect with VCs and angel investors
  • Internationalization support for global markets
  • Legal, IP, and compliance assistance

📝 How to Apply

Apply through MeitY-approved accelerators running SAMRIDH cohorts.

Check current cohorts at: msh.meity.gov.in/schemes/samridh

Apply for SAMRIDH →

4. Stand-Up India Scheme

Loan Amount: ₹10 Lakhs to ₹1 Crore
For: Women & SC/ST Entrepreneurs
Repayment: 7 Years

Stand-Up India provides collateral-free bank loans to women and SC/ST entrepreneurs for setting up greenfield enterprises in manufacturing, trading, or services.

✅ Eligibility Criteria

  • Women OR SC/ST entrepreneur (above 18 years)
  • For greenfield enterprise only (first-time venture)
  • In manufacturing, services, trading, or agri-allied sectors
  • For non-individual enterprises: SC/ST or woman must hold at least 51% stake
  • Borrower must not be a defaulter to any bank/financial institution

💰 What You Get

  • Composite Loan: ₹10 lakh to ₹1 crore (85% of project cost)
  • Interest Rate: Bank's lowest rate (MCLR + 3% + Tenor Premium)
  • Repayment period: 7 years with 18-month moratorium
  • Credit Guarantee via CGFSIL (no collateral required)
  • Rupay Debit Card for easy withdrawals

📝 How to Apply

Step 1: Visit standupmitra.in

Step 2: Fill online application and upload required documents

Step 3: Apply at nearest bank branch (all scheduled commercial banks participate)

Apply for Stand-Up India →

5. PMMY - Pradhan Mantri Mudra Yojana

Loan Amount: Up to ₹10 Lakhs
For: Micro & Small Businesses
Categories: Shishu, Kishore, Tarun

Mudra Loan supports micro and small businesses with collateral-free loans in three categories based on business stage and funding requirements.

✅ Loan Categories & Eligibility

  • Shishu: Up to ₹50,000 (for starting business)
  • Kishore: ₹50,001 to ₹5 Lakhs (for growing business)
  • Tarun: ₹5,00,001 to ₹10 Lakhs (for established business expansion)
  • Available for manufacturing, trading, services, and agri-allied sectors
  • No collateral required

💰 What You Get

  • Collateral-free loans
  • Flexible repayment terms (up to 5 years)
  • Competitive interest rates (varies by bank)
  • Can be used for working capital or equipment purchase
  • Available at all public & private banks, NBFCs, MFIs

📝 How to Apply

Visit Mudra portal: mudra.org.in

Or apply directly at nearest bank branch with business plan and KYC documents.

Apply for Mudra Loan →

6. Fund of Funds for Startups (FFS)

Total Corpus: ₹10,000 Crores
Managed By: SIDBI
Investment: Via SEBI-registered VCs

Fund of Funds doesn't invest directly in startups but provides capital to SEBI-registered Venture Capital funds, which then invest in DPIIT-recognized startups.

✅ How It Works

  • Government invests in SEBI-registered Alternative Investment Funds (AIFs)
  • These VCs invest in DPIIT-recognized startups
  • Startups benefit from increased VC funding availability
  • Focus on early-stage and growth-stage startups

💰 What You Get

  • Indirect funding through participating VCs
  • Access to domestic rupee capital
  • ₹623 Crores committed to 17 VCs so far
  • ₹245 Crores disbursed to 72 startups (catalyzing more investment)

📝 How to Benefit

Apply to VCs funded by FFS. Check list at: startupindia.gov.in

Learn More →

7. CGSS - Credit Guarantee Scheme for Startups

Corpus: ₹2,000 Crores
Loan Coverage: Up to ₹5 Crores per Startup
Benefit: 7,500+ Startups

CGSS provides credit guarantees to lending institutions, making it easier for startups to get bank loans without collateral.

✅ Eligibility

  • DPIIT-recognized startups
  • Incorporated as Private Limited, LLP, or Partnership
  • Loan requirement up to ₹5 crores
  • Used for working capital or business expansion

💰 What You Get

  • Government acts as guarantor for your loan
  • Banks more willing to lend without collateral
  • Covers 80% of loan amount in case of default
  • Reduces risk for lenders, increases access for startups
Learn More →

8. AIM - Atal Innovation Mission

Focus: Innovation & R&D
Programs: AIM-iCREST, Mentor India
Ministry: NITI Aayog

AIM promotes innovation through Atal Tinkering Labs, incubation centers, and mentorship programs for students and startups.

✅ Programs Under AIM

  • Atal Incubation Centers: Grant up to ₹10 crores for incubators
  • AIM-iCREST: Support for international collaboration
  • Mentor India Campaign: Free mentorship from industry experts
  • Focus on deep-tech, social impact, and innovation
Explore AIM →

9. NIDHI - National Initiative for Developing and Harnessing Innovations

Funding: ₹10 Lakhs (PRAYAS) + ₹50 Lakhs (SSS)
Ministry: DST (Department of Science & Technology)
Focus: Science & Tech Startups

NIDHI supports knowledge-based, technology-driven startups through proof-of-concept grants and seed support.

✅ Sub-Schemes

  • NIDHI-PRAYAS: ₹10 lakh grant for prototype development
  • NIDHI-SSS: ₹50 lakh seed support for early-stage startups
  • NIDHI-EIR: ₹30,000/month for 12 months to aspiring entrepreneurs
  • For science, tech, and knowledge-based innovations
Apply for NIDHI →

10. State-Level Startup Schemes

Varies By State
Examples: StartinUP (UP), Startup TN, Karnataka Startup Policy

Most Indian states have their own startup policies offering grants, subsidies, and incentives.

✅ Examples of State Schemes

  • Uttar Pradesh (StartinUP): ₹5L prototype grant + ₹7.5L seed capital
  • Karnataka: ₹50L funding through idea2PoC scheme
  • Tamil Nadu: Interest subvention on loans
  • Maharashtra: Reimbursement for patents, IP
  • Gujarat: Subsidy on working capital loans

📝 How to Apply

Check your state's startup policy at: startupindia.gov.in/state-startup-policies

Explore State Schemes →

Need Help Applying for Government Grants?

Naraway helps startups secure government funding through DPIIT registration, application assistance, documentation support, and compliance guidance.

We've helped 500+ startups access ₹25+ crores in government funding.

Get Free Consultation →

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