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Government
Schemes for
Indian Startups
in 2023

Abhi Srivastava
 01

Startup India
Seed Fund Scheme
(SISFS)

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During the early stage of its business
proceedings, a competitively new company can
face significant fiscal challenges when it comes to
producing prototypes for its final products or
running a trial for the same.
To ensure a startup can seamlessly conduct these
aforementioned ventures from the outset of its
market entry, the government launched the SISF
scheme. As per the guidelines of this policy, a
business can receive up to ₹20 lakh rupees for its
research and development measures.
 02

Startup India
Initiative

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This govt funding for startups applies to private
limited enterprises, LLPs, and registered
partnership firms of this country. As a result, the
scheme has so far recognised around 50,000
businesses to be eligible for the benefits provided by
this initiative.
In simpler terms, the primary target of this scheme
is to reduce financial burdens on small businesses
by safeguarding them from the cascading effects of
taxation. Therefore, companies under the purview
of this scheme can enjoy significant tax exemptions
while also getting a chance to enrol in courses and
mentorship programmes which can pave the way
for sustainable development.
 03

ASPIRE
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An acronym for A Scheme for Promotion of
Innovation, Rural Industries and Entrepreneurship,
(ASPIRE) is an initiative by the government of India
aims to help entrepreneurs become large-scale
employers. As a way to strengthen the countryside
economic status of this nation, ASPIRE has taken
pivotal steps to establish technological and incubation
centres throughout rural India for MSMEs.
A larger portion of this country’s overall fiscal
capabilities depends on its agricultural output capacity.
Therefore, this govt fund for startups encourages
newer inventions in the field of AgriTech via
substantial grants to cover the expenditures required
for plant and machinery.
 04

Venute Capital
Assistance Scheme
(VCA)

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The VCA was launched by government bodies to
ensure a startup can secure substantial working
capital without falling into a debt trap that can
hinder its future aspects. With a ceiling of ₹50 lakh as
the maximum amount providable as a loan, govt fund
for startups scheme primarily caters to the agri-
business industry. It ensures that a zero-interest line
of credit is available for the entrepreneurs of the
farming sectors from the financial institutions of
India for a longer repayment window
 05

Digital India
BHASHINI

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Digital India BHASHINI is an initiative that was
introduced by the Prime Minister, Narendra Modi,
during the Digital India Week in 2022. This initiative
allows Indian citizens to easily access the Internet and
digital services in their native language. This form of
digital inclusion will encourage the participation of
startups. Digital India BHASHINI (Bhasha Interface
of India) aims to make AI and NLP resources
available to MSMEs, Startups, and Individual
Innovators in the public domain.
 06

SAMRIDH
Scheme

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Startup Accelerator of MeitY for Product Innovation,
Development and Growth (SAMRIDH) Scheme was
introduced by the Minister of Electronics Information and
Technology (MeitY) in August 2021. One of the main
objectives of this scheme is to provide funding support and
fiscal incentives to startups. The idea behind this initiative is
to lend support to startups that have proof of concept for
their products. The amount provided by the government to
the entrepreneurs is INR 40 Lakh. Under this scheme, the
government will provide funding to the accelerators after
evaluating the startup and its growth.
To be eligible to start a startup, the entrepreneur must be
Indian. It is critical that the accelerator has supported at least
50 startups to be eligible and has done the incubation
business only in the last 3 years.
 07

CHUNAUTI
Challenge

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Chunauti is a government initiative scheme that stands for
Challenge Hunt Under NGIS for Advanced Uninhibited
Technology Intervention. It was a pandemic-influenced
scheme that was launched in the year August 2020. This
online challenge was introduced with the aim of encouraging
startups to come up with solutions related to pandemic-
related problems. This NextGen Startup Challenge Contest
under the Next Generation Incubation Scheme (NGIS) is to
find startups that are working towards solutions or software
products to help solve futuristic, emerging technology, or
societal problems.
Indian startups that are working in domains related to
software product development and startups registered with
DPIIT under the Startup India Program are eligible as well.
The Chunauti program is conducted on time-to-time basis.
The last date for the CHUNAUTI 5.0 Challenge application
process was closed on the 31st of May, 2023.
 08

Raw Material
Assistance
Scheme

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This government scheme for startups in
India was launched by National Small
Industries Corporation (NSIC). It aims to
assist manufacturers and startups with
procuring raw materials. Under this scheme,
applicants can claim low-interest loans and
financial help to get raw materials.
 09

Atal Innovation
Mission

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This scheme belongs to a category of government schemes for
startups with a mandate to promote entrepreneurship and
innovation countrywide. The core focus of this scheme is on tier-2
and tier-3 cities.
Also known as AIM, this scheme provides a platform for
promoting world-class innovation hubs, sectoral focus, grand
challenges, and talent initiatives. Some key programs under this
scheme are innovation centers, Atal tinkering labs, community
incubation centers, and innovation centers.
Besides providing financial support and resources to startups, the
scheme offers easy access to information and resources.
 10

Single Point
Reistration
Scheme

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This government startup scheme offers a single-
window system for filing tenders to startups and
MSMEs. It is administered by the National Small
Industries Corporation.
The goal of this scheme is to ease restrictions for
startups applying for government tenders. SRPS
reduces the time, cost, and requirements with
participation in government tenders. However, it’s
essential that the startup shouldn’t have
completed a year of incorporation if they want to
apply for this scheme.
 11

NIDHI
Scheme

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The NIDHI Scheme (National Initiative for Development and
Harnessing Innovations), introduced by the Department of
Science & Technology (DST), Government of India, is an umbrella
programme. It was developed to nurture and grow ideas, and
knowledge- and technology-based innovations into startups. The
various NIDHI programmes include – NIDHI-EIR, NIDHI- PRAYAS,
NIDHI-SSS, NIDHI- CoE, NIDHI- GCC and NIDHI- Accelerator.
These programmes are implemented through Technology
Business Incubators (TBIs) around the country.
The objective of this scheme is to promote student startups and
help young entrepreneurs accelerate their startup journeys by
providing initial funding. They will financially support the
selected startups with Rs 10 Lakhs. It is important to note that
the NIDHI startup scheme aims to help out 20 student startups
every year. These startups must be student startups of
IEDC/NewGenIEDC (Innovation and Entrepreneurship
Development Centres).
Abhi Srivastava