National Startup Day 2025: India is currently going through the era of startups, where work is being done at a rapid pace to create a strong ecosystem for businesses and entrepreneurs. By June 2024, 1,57,000 units have been recognized as startups by the Department for Promotion of Industry and Internal Trade (DPIIT). During this period, recognized startups created more than 17 lakh direct jobs. In view of this expansion, the country is now being called a startup hub. Many schemes are being run by the Government of India with the aim of encouraging youth in the field of startup. By getting government support with these schemes, you can take your business plan forward in the path of action…
Startup India Scheme
This scheme was started by the Government of India on January 16, 2016. Its objective is to encourage startups and promote entrepreneurship in the country. This scheme provides funding, incentives and other resources to startups. Under this scheme, such startups can get assistance, which were established less than 10 years ago and their annual turnover is less than Rs 100 crore. Under the Startup India Scheme, the government has set up a fund of Rs 10,000 crore under the Financial Assistance Fund of Funds, which helps startups to get funding. 100 percent exemption in income tax is available for three years. Many other benefits are provided including exemption in registration of patents, trademarks and designs.
Startup India Seed Fund Scheme
Launched in the year 2021, the objective of this scheme is to provide financial assistance to early stage startups, so that their ideas can be converted into prototypes and commercialized. Those startups, which are maximum two years old and whose turnover is less than Rs 10 crore, can get initial support of up to Rs 50,000 through this scheme. This amount is given for prototype development, product trial, market entry and business expansion. Incubators can also avail the scheme provided they have minimum 2 years of experience and infrastructure and expertise to support startups.
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Credit Guarantee Scheme for Startups
The objective of this scheme launched by the Government of India is to provide assistance to startups in getting loans without any guarantee. This scheme is designed to remove funding barriers for startups and provide them financial support for their business growth. Startups registered in India and recognized by DPIIT, whose turnover does not exceed Rs 25 crore, can get a loan of up to Rs 10 crore through this scheme. Startups get flexibility in loan tenure and payment terms as per their requirement.
TIDE 2.0 Scheme
Technology Incubation and Development of Entrepreneurs (TIDE 2.0) is a program supported by the Ministry of Electronics and Information Technology, which aims to promote and support startups working with emerging technologies in the Information and Communication Technology (ICT) domain. This scheme was launched in the year 2019 to provide financial and technical assistance to incubators engaged in supporting ICT startups using emerging technologies like IoT, AI, Blockchain, Robotics. The scheme is implemented through a three-tier structure through incubators, the broad objective of which is to promote incubation activities in higher education institutions and leading Research & Development (RD) organizations. Through Tide 2.0 scheme, a startup can get funding ranging from Rs 4 to 7 lakh as per the requirement of the project. There are 51 Tide Centers across the country, which provide infrastructure, funding, and other resources to startups.
Samridh Scheme
The objective of this scheme, launched by the Government of India in 2021, is to provide financial, technical and business assistance to startups to promote them. Under this scheme, a maximum fund of up to Rs 40 lakh is provided to a startup. This fund helps in startup growth, product innovation, and market entry. Under the Samriddh scheme, a target has been set to provide assistance to more than 300 startups through accelerator programs. These programs include business strategy, marketing and mentorship.
Next Generation Incubation Scheme
Next Generation Incubation Scheme (NGIS) is an initiative of the Ministry of Electronics and Information Technology. The objective of this scheme is to encourage startups based on advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Blockchain and Internet of Thinking in Tier-2 and Tier-3 cities of the country. So far, incubation centers have been set up in 12 tier-2 and tier-3 cities, providing infrastructure and mentorship to startups. Under this scheme, selected startups are included in a structured incubation program where they are provided support at every stage of their business.
Atal Innovation Mission
This mission, launched by NITI Aayog in 2016, is a revolutionary initiative to promote innovation and entrepreneurship in the country. This mission provides an opportunity to youth and startups to hone their capabilities and contribute to building a strong India. Under this mission, more than 10,000 Atal Tinkering Labs have been established so far in schools across the country, which are enabling students to innovate and solve problems through Science, Technology, Engineering and Maths (STEM). More than 60 Atal Incubation Centers have been established. More than 200 innovation based solutions have been developed in various fields. Recently, the government has decided to continue this program till 31 March 2028. It has been named Atal Innovation Mission 2.0. A budget of Rs 2750 crore has been allocated for this scheme. The next phase of Atal Innovation Mission 2.0 will help in further enhancing India’s global competitiveness. This will provide better employment opportunities.
Pradhan Mantri Mudra Yojana
The full name of this scheme is Micro Unit Development Refinance Agency (MUDRA). With the aim of providing financial support to small businessmen, the Central Government started the Pradhan Mantri Mudra Yojana in April 2015. Under this, people are given small amount of loan to start their business. There are two objectives of Pradhan Mantri Mudra Yojana. First, to provide easy loans for self-employment. Second, to create employment through small enterprises. Under this scheme, loan is given in three phases. The first is Shishu Loan, under which youth wishing to start their own business can get a maximum loan of Rs 50,000. The second is Kishore Loan, which is for those whose business has already started but is not yet established. The loan amount given under this ranges between Rs 50,000 to Rs 5 lakh. The third phase is Tarun Loan, this loan is for those people whose business has been established and they need money to expand it or purchase property. In this the loan amount is between 5 lakh to 10 lakh.
Number of registered startups increased from 400 to 1.57 lakh in 9 years
- Funding in the country’s startups has increased 14 times to 115 billion dollars in these 9 years. In 2016 it was only 8 billion dollars.
- Indian startups have created more than 17 lakh jobs during this period.
- The number of unicorns has increased to 118, in 2016 it was only 8.
