Government Schemes for Startups in India -

Government Schemes for Startups in India

The Government of India and the Ministry of Micro, Small, and Medium Enterprises (MSME) have launched several government schemes for startups in India. These schemes aim to strengthen startups and MSMEs. 

Setups and MSME are the foundation for the success of the Government’s Aatma Nirbhar Bharat and Make in India vision and create more jobs. They will also increase exports, raise the living standards of millions of Indians and strengthen India worldwide.

The Indian government wants MSME to contribute to India’s GDP to reach 50% by 2024, from 29% currently, and provides 15 crores of jobs to Indians, up from 11 crores.

So, the Ministry of Micro, Small, and Medium-sized Enterprises (MSMEs) has started many government startup schemes. These schemes aim to provide startups and small businesses with more capital and a platform to support growth.

Government startups schemes in India

Government Schemes for Startups in India

5 Government schemes for startups in India that can help startups drive growth and increase business. 

Pradhan Mantri Mudra Yojana

Pradhan Mantri Mudra Yojana is one of the Government schemes for startups in India. Under this scheme, MUDRA Banks and Micro-Development units offer low-interest rate loans to microfinance and non-banking financial institutions. These institutions, in turn, provide low-interest loans to small and medium-sized enterprises and startups.

Mudra Yojana is one of the schemes that aims to empower Indian entrepreneurs. Under this scheme, loans up to Rs 10 lakh can be availed.

During the financial year 2022-2023, the loan sanctioned under the MUDRA plan is 9209851, with an approved amount of Rs. 66520.76 crore and disbursed an amount of Rs. 62650.57 crore. It started operating in 2015. More than 1.8 million jobs have been created in two years because of the loans and businesses generated through MUDRA. 

Under government schemes for startups in India, Mudra Yojana provides loans to three types of business categories which are: 

  • Shishu: for new businesses, a loan of fifty thousand (50,000) can be availed under this category.
  • Kishor: this is for a middle-aged company, and a loan of Rs 5 lakh can be taken under this category
  • Tarun: for an existing experienced company and a loan of Rs 10 lakh can be availed under this category.

The Mudra Plan covers MSMEs, such as small production units, retailers, wholesalers, and artisans.  

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTSME)

The Government of India has launched the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The Minister of MSMEs governs this scheme to provide guarantee-free loans for the micro and small business sector.

Under this startup business loan existing and new business units are eligible to avail of a loan. 

The Ministry of Micro, Small, and Medium Enterprises, the Government of India, and the Indian Small Industrial Development Bank (SIDBI) have established a trust called the Credit Guarantee Fund to implement the loan guarantee for Micro Enterprises and Small Enterprises (CGTMSE). 

This scheme is one of the most extensive startup loan programs started by the Ministry of MSME in India. Under Indian Government startup schemes, the CGTMSE program provides startups and MEMEs a guarantee-free loan of up to 1 crore. 

During the financial year 2021-2022, 32963 loan cases worth Rs. 742.74 crores have been settled under the CGTMSE scheme.

New and existing micro and small enterprises involved in production or service activities are eligible to get loans under this scheme, which do not include educational institutions, agriculture, self-help groups, training institutions, etc.

Also Read: SBI Home Loan scheme – State Bank Loan Schemes

Financial Support to MSMEs in ZED Certification Scheme

This scheme is one of the government schemes for startups in India. This Zero Defect and Zero Effect scheme cover existing and new production units; it aims to inspire manufacturers to create better products of high quality without flaws.

The focus is on manufacturers adopting superior manufacturing processes and using technology to ensure their products are the best in class.

ZED government scheme provides technology, financial support, and tools to ensure that the products have zero defects.

This system provides support for Zero Defect and Zero Effect production among MSME and ZED evaluation for their certification to:

  • Develop an ecosystem for harmless production in MSMEs, encouraging the adaptation of quality tools/systems and energy-efficient production, and ensuring that MSMEs produce high-quality products.
  • Direct production adopts production processes without defects and does not affect the environment. Encourage MSMEs to improve quality standards in products and operations continuously. Support the ‘Make in India’ campaign and develop production and ZED certification professionals.

Subsidy for Micro, Small, and Medium Enterprises provided by the Government of India under this plan will be 50%, 60, and 80%.

Credit Linked Capital Subsidy for Technology Up-gradation (CLCSS)

The government knows that technology is a tool that can lead Indian businesses and SMEs to compete with global competitors, so they introduce the CLCSS scheme. 

The Ministry of Small Scale Industry (SSI) is running a small industry technological upgrade (SSI) plan known as the Credit Linked Capital Subsidy Program (CLCSS).

The program aims to facilitate technological upgrades in SMEs by providing 15% of startup capital (for institutional funding up to Rs 1 crore, which they availed) to introduce established and improved technologies in 51 approved sub-sectors/products.

In other words, the main goal of this scheme is to upgrade their plant and machines with the latest technology, with or without extensions. It is also for new MSEs that have installed their plants with properly approved and tested technology per scheme guidelines. 

According to CLCSS, Government provides a subsidy of 15% for investments of up to 1 crore to upgrade technology for startups and MSMEs in India. This government plan covers more than 7,500 products/services.

For more details about the CLCSS scheme, go to

Design Clinic for Design Expertise to MSMEs

Design and innovation are essential for any industry. Every MSME and startup should have a design-oriented approach to solving problems in their field.

To encourage and motivate small businesses to try and test new designs for their products, the Ministry of Micro, Small, and Medium Enterprises (MSME) has created a Design Clinic to promote design skills for startups and MSMEs.

As part of this government program, the government provides assistance of up to Rs 60,000 per seminar. And up to 3.75 lakh for design workshops. The entrepreneur or his team can learn more about design theories and apply them.

Through this program, entrepreneurs can learn about the latest trends and practices in design, communicate and network with other designers and entrepreneurs and gain a thorough understanding of design attitudes and theories.

MSMEs, startups, and agencies can apply online to this design clinic and access the innovation portal. For more details about the design scheme, visit


To promote and support business and create jobs for Indians central Government in India has launched several government schemes for startups in India. 

Enterprises established in various sectors contribute to the country’s economic growth and development and gain international recognition.

However, it is not easy to start a business. The government understands business owners’ and startups’ difficulties in establishing and maintaining them. 

So, the government has launched these various plans for companies to reduce the burden and encourage the creation of new companies and startups.

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