India’s startup scene is really picking up steam in 2025, thanks to some robust government initiatives that provide funding, tax breaks, incubation support, and strategic partnerships. Here are a few standout programs to keep an eye on:
1. Startup India (DPIIT Recognition + Tax & Regulatory Benefits)
Getting recognized under DPIIT opens the door to a range of benefits, including a full income tax exemption on profits for three years within a ten-year period under Section 80-IAC. It also allows for self-certification of nine labor laws and three environmental laws, speeds up patent processing with up to an 80% fee reduction, and makes it easier to access government procurement tenders even without prior experience.
2. Fund of Funds for Startups (FFS)
Launched in 2016 with a whopping ₹10,000 crore corpus, managed by SIDBI, the FFS channels capital into startups through Alternative Investment Funds (AIFs). By December 2024, ₹6,886 crore had been allocated to SIDBI, with AIFs investing ₹11,687 crore across 1,173 startups.
3. Startup India Seed Fund Scheme (SISFS)
Kicking off in 2021 with a corpus of ₹945 crore, SISFS is designed to help early-stage startups with prototyping, proof of concept, trials, and market launches. Grants can go up to ₹20 lakhs for concept development and as much as ₹50 lakhs for scaling.
4. Credit Guarantee Scheme for Startups (CGSS)
This scheme offers a collateral-free guarantee, giving startups access to bank loans without needing security. Recently, the guarantee cover was increased, now providing up to ₹20 crore per borrower.
5. Atal Innovation Mission (AIM) & Atal Incubation Centres
Under NITI Aayog’s AIM, over 3,500 startups have been nurtured across 72 Atal Incubation Centres by 2025, creating more than 32,000 jobs. These centres provide mentorship, co-working spaces, technical resources, and support across various sectors like HealthTech, Space Tech, EdTech, AgriTech, and more.
6. IN-SPACe Space Tech Fund
In early 2025, India’s space regulator kicked off a ₹500 crore Technology Adoption Fund, which offers up to 60% cost support (with a cap of ₹25 crore) for space tech startups. Additionally, a separate ₹1,000 crore VC fund was greenlit to drive innovation in the space sector.
7. Udyam MSME Registration
This initiative simplifies access to collateral-free loans (through CGTMSE), along with subsidies for patents, ISO certification, electricity, and protections under MSME delayed-payment laws. By mid-2024, over ₹15.6 lakh crore in credit had been facilitated, with 4.77 crore MSMEs registered.
Estimating Your ROI & Best Time to Earn
- Tax Savings: Startups recognized by DPIIT can enjoy significant tax savings in their early years thanks to a full tax rebate under 80-IAC, which can really boost your initial ROI.
- Fund Access: Make the most of SISFS for early growth, and if you’re scaling, look into FFS for equity or grant-based capital to help accelerate your growth.
- Loan Liquidity: Thanks to CGSS’s enhanced ₹20 crore cover, startups with solid plans can quickly and affordably secure working capital.
- Sector-Specific Boosts: AgriTech and space startups can benefit from targeted grants like RKVY-RAFTAAR or IN-SPACe, which fast-track commercialization with partial funding.
- Incubator Support: AICs and AIM provide essential human capital, mentoring, and networking opportunities that are crucial for gaining early traction and preparing for investors.
Best Timing:
- 0–2 years: This is the perfect window to apply under Startup India (DPIIT) for tax, legal, and patent benefits.
- 1–3 years: Utilize SISFS for funding your prototype and market entry.
- 2–5 years: Tap into FFS and CGSS for your scaling capital and working capital needs.
- Sector growth windows: If you’re in the AgriTech or space sectors, align your efforts with RKVY-RAFTAAR or IN-SPACe opportunities when your product is ready.