Top 10 Government Grants for Startups in India [2025 Edition]
Fuel your startup journey with free capital—explore the most founder-friendly grants and how to get them.
Imagine this—
You’ve built an MVP, validated your idea, and maybe even got your first few users. But now, the real challenge begins scaling.
You start looking for funding, but every door you knock on either wants a big chunk of equity or burdens you with payback terms you’re not ready for.
That’s when someone asks you: “Have you checked out government grants?”
Wait—grants?
Free money, no equity taken, and no repayments? Sounds too good to be true, right?
But here’s the thing: India’s startup ecosystem is backed by a surprisingly strong network of government grants designed to help early-stage founders like you.
From tech innovation to social impact, energy efficiency to dairy infrastructure (yes, seriously!) — there’s likely a scheme built for what you’re building.
In this guide, we’re diving into the top 10 government grants available in 2025 that can give your startup the push it needs — without diluting a single share.
Let’s get you that grant. 🚀
Let’s Dive into the Grants
Securing funding is a pivotal challenge for startups, and government grants offer a valuable avenue to obtain financial support without relinquishing equity or incurring debt. In 2025, the Indian government has introduced several new schemes to bolster the startup ecosystem. Here’s an overview of ten such grants, detailing their benefits, eligibility criteria, application processes, and relevant links.
How Xartup Helps You Fundraise Smarter
Instead of blindly reaching out to investors, use a strategic approach:
✅ Leverage Xartup’s Investor Database to find the right VCs based on sector & stage.
✅ Join the Xartup Fellowship to access mentorship & growth resources.
✅ Get Technical Credits to test your product and many more.
🚀 Ready to optimize your fundraising? Join xartup.com
1. IN-SPACe Technology Fund (₹25 Cr/project)
This ISRO-backed fund supports space-tech startups building satellites, launch systems & applications.
Best for: Startups with ready-to-test prototypes.
Tip: Partner with DRDO/ISRO labs to strengthen your proposal.
🔗 Apply here
2. Fund of Funds for Startups (FFS)
The govt co-invests in your startup indirectly via SEBI-registered VCs.
Best for: DPIIT-recognized startups looking for VC funding.
Tip: Get your profile on Startup India’s hub — VCs look there too.
🔗 Apply here
3. Stand-Up India Scheme
Enables bank loans from ₹10L–₹1Cr for women and SC/ST entrepreneurs to set up greenfield ventures.
Best for: First-time founders from underrepresented groups.
Tip: Prepare a clear DPR and approach your bank manager proactively.
🔗 Apply here
4. Credit Guarantee Scheme for Startups (CGSS)
Government offers loan guarantees for startups to reduce lender risk.
Best for: Startups with traction but struggling with collateral.
Tip: Apply via lending partners like SIDBI, SBI, etc.
🔗 Apply here
5. Multiplier Grants Scheme (MGS)
Get up to ₹2 Cr support when co-developing tech with academic partners.
Best for: Deep-tech or R&D-heavy startups.
Tip: Choose an approved institution (IITs, NITs, etc.) as your collaborator.
🔗 Apply here
6. Dairy Infra Development Fund (DIDF)
Funds infra like milk chilling units, storage, and processing plants.
Best for: Agri-Tech & rural dairy startups.
Tip: Apply via your state milk federation/NABARD.
🔗 Apply here
7. Electronics PLI 2.0
Aimed at making India a global electronics hub, this scheme offers 5-6% incentives on incremental sales.
Best for: Consumer electronics, EV component, chip design startups.
Tip: Apply early — approvals are capped each fiscal.
🔗 Apply here
8. MUDRA Loans (Shishu / Kishor / Tarun)
Offers collateral-free loans up to ₹10L via 3 structured categories.
Best for: Early-stage product or service businesses.
Tip: Keep your business model + cash flow pitch tight for bank officers.
🔗 Apply here
Xartup, in collaboration with VCCircle and IIT Bombay, is excited to present the 1st chapter of The Pitch FY 25-26 – India’s leading fundraising platform for startups.
Building on the success of 4 impactful chapters in FY 24-25, where over 170 startups pitched to 60+ investors, The Pitch now moves to Mumbai.
Don’t miss out on this exclusive opportunity to pitch your startup one-on-one to India’s top investors at IIT Bombay on 6th June 2025.
Apply now and take the next step towards raising capital and scaling your business!
9. Digital India BHASHINI Scheme
An open-source platform that helps startups build AI-based language tools for translation, voice, and text services in Indian languages.
Best for: AI/NLP, voice-tech, ed-tech, and regional content startups.
Tip: Explore APIs on the Bhashini platform and propose a use-case.
🔗 Apply here
10. NIDHI-PRAYAS (DST) – Prototype Grant for Innovators
The National Initiative for Developing and Harnessing Innovations (NIDHI) offers the PRAYAS grant to help startups develop prototypes. Founders can get up to ₹10L to bring their idea closer to commercialization.
Best for: Aspiring entrepreneurs, students, and early-stage startups working on hardware or tech-based innovations.
Tip: You must not have a working prototype when applying. Ideal for pre-product-stage innovation.
🔗 Apply here
How boAt Used Govt Schemes to Scale
When boAt set out to disrupt India’s audio accessories market, they didn’t chase VC funding right away. Instead, they focused on product, brand, and supply chain — and leveraged Electronics Manufacturing Schemes and PLI incentives to ramp up production affordably.
Fast-forward to today:
boAt is a ₹3,000+ Cr brand, dominating India’s wearables space — built on smart execution and strategic support.
Your Turn to Apply
Grants are more than just funding — they’re your startup’s silent co-founder. No dilution. No debt. Just pure support.
“You don’t need to give up ownership to get off the ground — you just need to know where to look.”
So, whether you're building a satellite system, a dairy tech platform, or the next regional language AI — there's a scheme out there made just for you.
Take your shot. The government is ready to invest in your vision.
How Xartup Helps You Fundraise Smarter
Instead of blindly reaching out to investors, use a strategic approach:
✅ Leverage Xartup’s Investor Database to find the right VCs based on sector & stage.
✅ Join the Xartup Fellowship to access mentorship & growth resources.
✅ Get Technical Credits to test your product and many more.
🚀 Ready to optimize your fundraising? Join xartup.com
