Indian Economy News

Government supports startup ecosystem through three flagship schemes under Startup India initiative

The Government of India is reinforcing the country’s startup ecosystem through three flagship schemes implemented under the Startup India initiative, aimed at improving access to finance and supporting innovation-led enterprises. Administered by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, these schemes address funding needs across the startup lifecycle, from early ideation to expansion. The initiatives are also aligned with the government’s broader objective of promoting inclusive entrepreneurship, with a particular focus on encouraging women-led ventures.
A key component of this framework is the Fund of Funds for Startups (FFS), which mobilises domestic risk capital by investing in Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds. The scheme is managed by the Small Industries Development Bank of India (SIDBI). As of October 31, 2025, supported funds had invested about US$ 341.00 million (Rs. 2,838.90 crore) in 154 women-led startups, helping strengthen both the venture capital ecosystem and startup access to professional funding.
The Startup India Seed Fund Scheme (SISFS), operational since April 1, 2021, provides early-stage financial assistance through approved incubators for proof of concept, product development and market entry. By October 31, 2025, nearly US$ 34.20 million (Rs. 284.79 crore) had been sanctioned to 1,635 women-led startups. In addition, the Credit Guarantee Scheme for Startups (CGSS), launched on April 1, 2023, facilitates collateral-free loans through eligible lending institutions, with guarantees covering loans worth around US$ 4.00 million (Rs. 33.17 crore), improving access to formal credit and supporting business growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.