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Government schemes for startups in India are designed to foster entrepreneurship, innovation, and economic growth. These initiatives provide financial assistance, mentorship, and infrastructural support to budding entrepreneurs, making establishing and scaling their businesses easier.
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These schemes promote innovation, enhance access to funding, and simplify regulatory processes, creating a conducive environment for startups to flourish. Additionally, various government-backed life insurance schemes offer financial security for small and rural entrepreneurs and their families, encouraging risk-taking and business ventures.
Let us discuss some of the best government insurance schemes for startups in India in 2025.
Term Plans
| Scheme Name | Who are eligible? | Benefits |
| Atal Innovation Mission (AIM) | - Startups, MSMEs, Innovators, and Entrepreneurs. - Focus on innovation and technology. | - Support to startups through Atal Incubation Centers. - Financial grants and assistance. - Mentorship and networking. |
| Startup India Seed Fund Scheme (SISFS) | - Indian Startups. - Must be in the seed stage, with innovative ideas. - Technology-driven businesses. | - Financial support to startups for prototype development and product trials. - Up to Rs 50 lakh in funding. |
| Startup India Initiative | - Indian entrepreneurs. - Innovative and scalable businesses. - Must be recognized by DPIIT. | - Tax exemptions, easier regulations, funding opportunities. - Networking and mentorship support. |
| Dairy Processing and Infrastructure Development Fund (DIDF) | - Dairy cooperatives and Farmer Producer Organizations (FPOs). - Must operate in the dairy sector. | - Financial assistance for dairy infrastructure. - Modernization of existing plants. - Long-term loans with low interest rates. |
| Pradhan Mantri MUDRA Yojana (PMMY) | - Micro-enterprises, startups, and small businesses. - Non-corporate, non-farm sectors. | - Loans up to Rs 10 lakh. - Low interest rates. - No collateral or guarantee required. |
| Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) | - Micro and Small Enterprises (MSEs). - Indian enterprises engaged in manufacturing or service sectors. | - Provides credit guarantee for loans to MSEs. - Encourages lending to MSMEs with no collateral. - Access to collateral-free loans. |
| Multiplier Grants Scheme (MGS) | - Government-funded R&D institutions and academic institutions. - Private industries with joint collaboration. | - Financial support for industry-academia collaboration. - Encourages research and development in new technologies. |
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From seed funding and tax benefits to mentorship and networking opportunities, the government’s efforts empower startups to contribute to job creation, technological advancement, and overall economic development in the country.
Here are the top schemes discussed in detail.
Atal Innovation Mission is a government-run organization under the NITI Ayog that focuses on nurturing innovation and entrepreneurship in India. It aims to create a strong innovation ecosystem by providing grants to incubators, accelerators, and innovation centers nationwide. The mission supports startups and innovators through financial aid, mentorship, and infrastructure, fostering technological innovations and scalable businesses.
Here are the key features:
AIM promotes innovation through financial grants.
Incubators and accelerators are set up for mentoring and support.
Encourages technological and entrepreneurial growth.
This scheme aims to provide financial assistance to early-stage startups for product development, market-entry, and scaling. It is designed to support startups working on innovative ideas, especially in technology-driven sectors. The scheme provides seed funding of up to Rs 50 lakh to eligible startups.
Here are the key features:
The scheme is targeted at seed-stage startups.
Funding is aimed at product development and market trials.
Encourages entrepreneurship with innovative solutions.
Startup India is an initiative of the Government of India that focuses on fostering entrepreneurship in India. This initiative offers various incentives, such as tax exemptions, simplified regulatory frameworks, and funding opportunities. The goal is to create a conducive environment for startups to flourish and contribute to economic growth.
Here are the key features:
Startup India Initiative offers tax benefits and regulatory simplifications for startups.
Funding and networking opportunities for entrepreneurs.
Aims to promote entrepreneurship across sectors.
DIDF is designed to modernize the dairy industry by providing financial assistance for infrastructure development. This scheme primarily targets dairy cooperatives and Farmer Producer Organizations (FPOs) to upgrade their dairy processing capabilities and improve the quality of milk and milk products.
Here are the key features:
Financial assistance for dairy infrastructure development.
Supports modernizing dairy plants and facilities.
Low-interest loans with flexible repayment terms.
PMMY provides financial assistance to micro, small, and medium enterprises (MSMEs) that are not covered by traditional banking channels. Also known as Pradhan Mantri Mudra loan yojana, the scheme offers loans ranging from Rs 50,000 to Rs 10 lakh for startups and small businesses with low-interest rates and no collateral requirements. The Pradhan Mantri Mudra Yojana application form is easily accessible from banks, Non-bank Financial Corporations (NBFCs), and Microfinance Institutions (MFIs). You can also apply online through the Udyamimitra portal.
Here are the key features:
Loans up to Rs 10 lakh without collateral.
Focuses on micro-enterprises and small businesses.
Easy access to credit for entrepreneurs.
This scheme provides a credit guarantee to banks and financial institutions offering loans to Micro and Small Enterprises (MSEs). By offering collateral-free loans, the CGTMSE helps MSMEs gain easier access to financing, thereby promoting entrepreneurship and growth in the small business sector.
Here are the key features:
Collateral-free loans for MSMEs.
Encourages banks to lend to smaller enterprises.
Simplifies access to financial resources for entrepreneurs.
The MGS facilitates collaboration between government-funded research institutions and private industry. The scheme aims to encourage industry-academia partnerships, particularly in developing innovative technologies. MGS helps accelerate research and technological advancement by offering financial support to joint projects.
Here are the key features:
Financial assistance for industry-academia collaborations.
Supports innovation and R&D.
Encourages technological advancements across sectors.
After strengthening the Indian ecosystem with the widespread environment of life insurance, term insurance and other general insurance schemes, these government initiatives for startups in India are designed to provide critical support to various other flourishing sectors in India, including startups, MSMEs, agriculture, and research.
The Indian government aims to foster innovation, entrepreneurship, and economic growth across different industries by offering financial assistance, mentorship, infrastructure development, and regulatory benefits.
Note: Check all the best term insurance plan in India.
Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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