Government schemes for Indian tech startup founders.
The complete stack of central, sectoral and state programmes for tech founders in India — SaaS, AI, deep tech, fintech, hardware, biotech. Ranked from gateway credentials to high-value funding rounds.
The standard sequence
For most Indian tech founders, the sequence is: DPIIT Startup India Recognition (free, gateway to everything) → Udyam Registration (free, MSME credential) → SISFS (up to ₹70 L grant + convertible at idea / prototype / MVP) → Section 80-IAC tax holiday (after revenue starts) → CGSS credit guarantee or FFS-backed AIFs at growth stage.
On top of that, sector-specific programmes pay disproportionately well: iDEX for defence tech (up to ₹25 Cr), BIRAC BIG for biotech, IN-SPACe Seed / TAF for space tech, ISM DLI for fabless chip design. State programmes like Karnataka ELEVATE and Telangana T-Fund stack on top of these.
Schemes that apply
18 schemes
DPIIT Startup India Recognition
The gateway credential. Itself free, but unlocks 80-IAC tax holiday, IP fee rebates, labour self-cert, GeM access, SISFS eligibility. First filing post-incorporation.
Section 80-IAC — Income Tax Holiday
100% tax deduction on profits for 3 consecutive years out of first 10. Approval rate ~1.8% — IMB scrutiny is rigorous. Time the 3-year window strategically.
Fund of Funds for Startups (FFS) 1.0 & 2.0
FFS doesn't fund startups directly — backs SEBI AIFs which deploy 2× SIDBI commitment into DPIIT startups. FFS 2.0 (Apr 2026): another ₹10,000 Cr with Deep Tech carve-out.
Startup India Seed Fund Scheme
Up to ₹20 L grant for PoC/prototype + up to ₹50 L convertible/debt for market entry. Apply to up to 3 incubators. ₹605+ Cr deployed to 3,400+ startups.
Credit Guarantee Scheme for Startups
Credit guarantee on loans up to ₹20 Cr (doubled from ₹10 Cr in May 2025). Cover 85% up to ₹10 Cr, 75% above. AGF reduced to 1% p.a. for 27 Champion Sectors.
SAMRIDH — MeitY Startup Accelerator
Up to ₹40 L matching investment via accelerator. ~300 startups targeted; 373 supported as of Feb 2026.
Technology Development Board
Soft loans (up to 50% project cost) or equity at concessional rates ~5-9%. Suited for hardware/IP-heavy ventures.
NIDHI-PRAYAS
Up to ₹10 L for prototype development. Routed through TBIs.
NIDHI-EIR — Entrepreneur in Residence
Monthly stipend (~₹30K) for 12 months to de-risk quitting your job. Underused — gives runway before company formation.
NIDHI-SSS — Seed Support Scheme
Up to ₹1 Cr per startup via incubator as loan, equity, or equity-linked. NRI-friendly.
Karnataka ELEVATE / ELEVATE NxT
Gold-standard state programme. Up to ₹50 L one-time seed grant, zero equity. NxT: up to ₹1 Cr for Deep Tech. 1,230+ startups funded.
Telangana T-Fund / T-SEED
T-Hub is India's largest incubator. T-Fund: ₹25 L–₹1 Cr co-investment. ₹1,000 Cr FoF (Dec 2025, AI focus). Pavala Vaddi 9% subvention.
Maharashtra MahaFund / MSInS
₹500 Cr MahaFund + MSInS Seed Fund. India's highest IPR reimbursement: ₹2 L domestic / ₹20 L international patents.
TANSEED + iTNT Hub
TANSEED 6.0: ₹10-15 L grant. iTNT Hub: up to ₹50 L for R&D-heavy DeepTech. ₹100 Cr Co-creation Fund. 12,000+ startups (50% women-led).
GIFT City IFSC — 20-Year Tax Holiday
20-year tax holiday (extended from 10 in Budget 2026-27). 100% NRI/OCI fund ownership. Zero capital gains for non-residents in Cat III AIFs.
SIP-EIT — International Patent Support
Up to ₹15 L per invention (or 50% of cost) for international patent filing.
SIPP — Startup IP Protection
80% rebate on patent fees + 50% on trademarks + expedited examination (4-6× faster). Free facilitators.
MeitY TIDE 2.0
Up to ₹7 L for IT product startups via empanelled incubators.
Frequently asked questions
What government schemes should a new tech startup apply for first?+
Day-one filings: DPIIT Startup India Recognition and Udyam Registration (both free, both unlock everything else). Within the first 6 months: SISFS via an empanelled incubator if you are at idea / prototype / MVP stage.
Is DPIIT recognition mandatory for tech startup schemes?+
Yes for the high-value central schemes (SISFS, Section 80-IAC, CGSS, FFS, SAMRIDH, SIPP). It is not required for state schemes or MSME-focused schemes like MUDRA, PMEGP, CGTMSE.
What is the maximum funding under SISFS?+
Up to ₹20 L as grant for proof-of-concept / prototype, plus up to ₹50 L as convertible debenture / debt for market entry and scaling — total potential of ₹70 L per startup. Funds are deployed through DPIIT-empanelled incubators.
How does Section 80-IAC tax holiday work?+
100% deduction on profits and gains for 3 consecutive years out of the first 10 years of incorporation. Approval is competitive — historic approval rate is around 1.8% — and granted by an Inter-Ministerial Board. Choose your 3-year window strategically when profits are highest.