5 Game-Changing Government Schemes for Indian Startups

Over the last decade, India’s startup ecosystem has transformed into one of the fastest-growing in the world. 

From bustling metro cities to emerging Tier II and Tier III hubs, Indian startups are driving change across sectors like fintech, healthtech, agritech, edtech, and deep tech. As of 2024, India is home to over 100 unicorns and thousands of active startups, making it the third-largest startup ecosystem globally. 

Recognising the transformative power of startups, the Indian government has been playing an active role in nurturing this ecosystem. Through a wide range of policies, funding initiatives, and infrastructural support, it has created a fertile ground for startups to thrive on. 

In this article, we explore five impactful government schemes—NIDHI, GENESIS, BIRAC, Digital Communication Innovation Square (DCIS), and the SAGE Venture Fund—that are helping Indian startups scale new heights.

1. National Initiative for Developing and Harnessing Innovations (NIDHI)

Ministry: Ministry of Science & Technology
Department: Department of Science & Technology (DST)

Tenure: Active

It is a flagship program designed to nurture innovative ideas and transform them into successful, technology-driven startups. NIDHI aims to build an innovation-led entrepreneurial ecosystem that fosters wealth and job creation in India.

Key Features

The program consists of eight key components that cater to various stages of a startup’s journey - from idea validation and risk mitigation to incubation, acceleration, and international scaling. These include:

1. NIDHI-GCC (Grand Challenges and Competitions) – For identifying breakthrough innovations.

2. NIDHI-PRAYAS (PRomotion and Acceleration of Young and Aspiring innovators & Startups) – Supporting early-stage innovators from idea to prototype

3. NIDHI-EIR – Offering fellowships to aspiring entrepreneurs

4. NIDHI-TBI – Technology Business Incubators for structured support

5. NIDHI-Accelerator – Providing fast-track growth support

6. NIDHI-SSS – Seed Support System with funding ranging from ₹25 lakh to ₹1 crore per startup

7. NIDHI-CoE – Centres of Excellence to take Indian startups global

Benefits

• Access to Funding: Startups get timely seed support to bring ideas to life and reach the market. Avg. Seed Fund Amount for Startups is Rs. 25 Lakhs, which goes up to 100 Lakhs per startup

• Mentorship & Networking: Guidance from seasoned entrepreneurs, experts, and access to broader professional networks.

• Infrastructure & Incubation: Co-working spaces and incubation support to develop market-ready products.

Eligibility Criteria

• Startup Stage: Idea-stage to early-stage startups with knowledge-based and tech-driven innovations.

• Through Approved Incubators: Startups must apply through incubators that are approved, funded, or supported by DST or other central/state governments.

• Not-for-Profit Incubators: Only not-for-profit incubators are eligible to disburse NIDHI seed support funds.

Link to Application: https://dst.gov.in/callforproposals/ssp-call-proposals-under-nidhi-programme 

2. Gensis

Ministry: Ministry of Electronics and Information Technology (MeitY)

Tenure: 2022-2027

The Digital India GENESIS (Gen-Next Support for Innovative Startups) programme is an ambitious umbrella initiative aimed at transforming India’s startup landscape, particularly in Tier-II and Tier-III cities. 

With a sharp focus on deep tech and digitization, the programme seeks to discover, support, and scale startups that can contribute to economic growth and employment generation through technological innovation.

Key Features

• Focused on Deep Tech: Supports startups working in deep technology sectors such as AI, ML, IoT, robotics, blockchain, etc.

• Geographic Emphasis: Targets startup ecosystems in Tier-II and Tier-III cities to ensure equitable growth across regions.
  

• Collaborative Engagement: Encourages strong partnerships between startups, corporates, and government bodies.

• Equity-Linked Investment: Offers seed funding through an equity model to support startup growth.

• Timeframe: Active from 2022 to 2027 with a total fund allocation of ₹490 crore.

Benefits

• Access to Capital: Provides equity-linked seed investment to promising startups, enabling them to expand and grow sustainably.

• Global Scale: Helps startups gain a global presence by supporting their international expansion efforts.

• Digital Empowerment: Supports the broader goal of increasing accessibility, inclusivity, and affordability in the digital economy.

• Ecosystem Support: Builds a support structure that includes mentoring, incubation, and access to markets.

Eligibility Criteria

• Organisation and institutions that are based out of Tier II and Tier III cities of India, are eligible to apply for this scheme.

• Eligible entities include startup incubators, accelerators, investment platforms, entrepreneurship-supporting organizations, and academic R&D institutions that have intent, expertise, and allocation of resources to support student entrepreneurs and innovators in their local community.

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3. BIRAC Incubators SEED Fund

Ministry: Ministry of Science & Technology
Department: Department of Biotechnology (DBT)

Tenure: Active

BIRAC SEED Fund is designed to provide critical early-stage capital assistance to biotechnology startups with innovative and commercially viable ideas. 

This initiative acts as a financial bridge between a startup's initial promoter funding and larger rounds of funding from angel investors or venture capitalists.

Key Features

• Biotech Sector Focus: Specifically supports startups engaged in biotechnology, med-tech, and life sciences.

• Incubator-Centric Model: Funding is channeled through BIRAC-approved Bio-NEST incubators.
  

• Support for Seed Stage: Designed to cover the financial gap during the early phase of startup development.

• Not Investment-Based: Unlike equity investment models, this is a support scheme that does not require startups to dilute equity upfront.

• Grant to Incubators: Each incubator can receive up to ₹200 lakhs to implement the SEED Fund and support multiple startups.

• Custom Screening: Incubators can design their own screening processes (e.g., accelerators, pitch rounds) to select startups for funding.

Benefits

For Incubators:

• Strengthens their ability to support high-potential biotech startups.

• Enhances reputation and positioning within India’s innovation ecosystem.

• Provides financial leverage to attract and support promising ventures.

For Startups:

• Eases early-stage financial pressure and helps build strong foundations.

• Supports proof-of-concept, product development, and market entry.

• Provides access to IP support, technical mentorship, and regulatory guidance from incubators.

Eligibility Criteria

For Incubators:

• Must be supported under BIRAC’s Bio-NEST programme.

• Must have been operational for at least 3 years with a minimum of 5 resident biotech startups.

• Should have established IP & Technology Transfer (IP&TT) services.

• Must have prior experience in managing early-stage grants or funding programs.
  

For Startups:

• Must be registered under the Companies Act, 2013.

• Should have at least 51% Indian shareholding (excluding OCI/PIO).

• Must be working on innovative, biotech-relevant solutions with potential for commercialization and scale.
  

Link to Application:https://birac.nic.in/seedFundNew.php 

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4. Digital Communication Innovation Square

Ministry: Ministry of Communications
Department: Department of Telecommunications (DoT)

Tenure: Active

The Digital Communication Innovation Square (DCIS) is aimed at fostering innovation in India's digital communication landscape. It promotes startup culture by providing a comprehensive support system for innovators in the communication sector, covering everything from R&D to manufacturing.

Key Features

• Implementing Body: Executed by TCOE India under the supervision of the Department of Telecommunications.

• Sector Focus: Targets innovations in digital communication and telecom technologies.

• Comprehensive Support: Supports the entire innovation lifecycle, from ideation to commercialization.

• Fund Size: ₹124 crore allocated as budget outlay.

• Platform Access: Offers startups a platform to showcase and scale their solutions within the telecom sector.

Benefits

• Innovation Support: Assistance across research, design, development, and proof-of-concept stages.

• IP & Product Development: Encourages IPR creation, prototype development, and MVP building.

• Pilot Projects: Support for pilot implementations to validate market readiness.

• Ecosystem Development: Builds a holistic ecosystem for telecom entrepreneurship and product innovation.

Eligibility Criteria

• Applicants must qualify as startups as per DPIIT norms.

• Must be working towards developing or improving products/processes in digital communication.

• Proposed solutions should have scalable business models.

• Specific eligibility requirements can be found in the official policy document available on the DCIS website.

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5. SAGE Venture Fund

Ministry: Ministry of Social Justice and Empowerment
Department: Department of Social Justice and Empowerment

Tenure: Active

The SAGE (Senior Care Ageing Growth Engine) Venture Fund provides equity support to startups innovating in the elder care sector. It aims to empower ventures that develop products and services to improve the quality of life for senior citizens in India.

Key Features

• Sector Focus: Targets the elderly care segment, encouraging startups to innovate in senior welfare.

• Equity-Based Funding: Offers equity support up to ₹1 crore for up to 49% stake in qualifying startups.

• Government Recognition: Prioritizes startups awarded in national innovation challenges like Smart India Hackathon.

• Fund Objective: Supports startups from early innovation to scale, specifically in eldercare.

Benefits

• Capital Support: Startups can receive up to ₹1 crore in equity funding to accelerate their growth.

• Market Expansion: Encourages expansion of existing eldercare startups to new markets or service lines.

• Recognition & Visibility: Endorsement by a central ministry adds credibility and opens new collaboration opportunities.

• Tech-Driven Innovation: Facilitates the development and commercialization of IP-based or technology-driven eldercare solutions.
  

Eligibility Criteria

• Must be a DPIIT-recognized startup under the Government of India guidelines.

• Should work on innovative elder care products/services driven by tech or intellectual property.

• Preference for startups recognized through national-level innovation challenges (e.g., Smart India Hackathon).

• Must be incorporated in India as a Private or Public Company.

• Must be less than 10 years old from the date of incorporation.

• Should not have exceeded ₹25 crores in turnover in any of the previous financial years.

• Should not be formed by splitting or reconstructing an existing business.

The Indian government's proactive approach in launching and supporting these schemes underscores its commitment to nurturing a vibrant and inclusive startup ecosystem. 

Initiatives like these provide comprehensive support ranging from financial assistance and mentorship to infrastructure development and market access. 

By leveraging these schemes, Indian startups are better positioned to innovate, scale, and contribute significantly to the nation's economic growth and technological advancement. 

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