INDIA · CENTRAL & STATE
Government Schemes & Subsidies for Businesses in India
A plain-English guide to the schemes a company, MSME or startup can actually claim in 2026 — with the current limits, not the outdated ones — plus how we help you register and apply.
India runs dozens of schemes for new and growing businesses — recognition, free registrations, collateral-free loans, credit guarantees, capital subsidies and tax holidays. Several key thresholds changed in 2025–26 (MSME limits, the MUDRA ceiling, CGTMSE cover, the Startup India turnover cap), and most guides still quote the old numbers. Here are the current rules, and where each one fits your business.
Central government schemes
Startup India / DPIIT Recognition
Official DPIIT “startup” recognition unlocks tax, funding and compliance benefits for innovative early-stage companies.
- For entities up to 10 years old (20 for deep tech) with turnover under ₹200 crore
- 3-year income-tax holiday under Section 80-IAC for eligible startups (turnover under ₹100 crore; incorporation window to 31 March 2030)
- Angel tax abolished for all investors from April 2025
- Self-certification on labour & environment laws; 80% patent and 50% trademark fee rebates
- Access to the ₹10,000 crore Fund of Funds (via SIDBI-backed AIFs)
Udyam (MSME) Registration
The free, Aadhaar/PAN-based MSME registration — the single gateway to almost every MSME benefit. Classification limits were raised with effect from 1 April 2025.
- Micro: investment ≤ ₹2.5 crore and turnover ≤ ₹10 crore
- Small: investment ≤ ₹25 crore and turnover ≤ ₹100 crore
- Medium: investment ≤ ₹125 crore and turnover ≤ ₹500 crore
- Unlocks collateral-free lending, delayed-payment protection (45-day rule), subsidies and GeM access
PM MUDRA Yojana
Collateral-free micro-credit for non-farm income-generating activities, through banks, NBFCs and MFIs. The ceiling was doubled to ₹20 lakh in 2024.
- Shishu: up to ₹50,000
- Kishore: ₹50,000 – ₹5 lakh
- Tarun: ₹5 lakh – ₹10 lakh
- Tarun Plus: ₹10 lakh – ₹20 lakh (for borrowers who repaid an earlier Tarun loan)
Stand-Up India
Bank loans for greenfield (first-time) enterprises led by SC/ST and women entrepreneurs.
- Loan of ₹10 lakh to ₹1 crore, covering up to 85% of project cost
- For manufacturing, services, trading or agri-allied ventures
- Handholding support via the Stand-Up Mitra portal
CGTMSE Credit Guarantee
A government-backed guarantee that lets micro & small enterprises borrow without collateral or third-party guarantee.
- Maximum guarantee cover raised to ₹10 crore per borrower (from April 2025)
- Guarantee of roughly 75–85% of the amount in default
- Higher cover for micro loans, women, SC/ST and Aspirational Districts
PMEGP
A credit-linked subsidy scheme (via KVIC) to set up new micro-enterprises and generate self-employment.
- Margin-money subsidy of 15–25% (general) and 25–35% (special categories / rural)
- Project ceilings: manufacturing up to ₹50 lakh, service up to ₹20 lakh
- For new units only; beneficiary contributes 5–10%
PLI Schemes
Production Linked Incentives pay a percentage on incremental India-made output, to scale domestic manufacturing.
- 14 sectors, roughly ₹1.97 lakh crore total outlay
- Electronics, pharma, textiles, auto & components, batteries, solar, white goods and more
- Milestone-based; suited to mid-to-large manufacturers
GeM (Government e-Marketplace)
The government’s procurement portal where MSMEs and startups sell directly to public buyers.
- Public buyers have a 25% procurement target from MSMEs
- Sub-targets for SC/ST-owned (4%) and women-owned (3%) MSMEs
- EMD and prior-turnover relaxations for MSMEs and DPIIT startups
UNNATI 2024 (North-East)
The central industrialisation scheme for the eight North-Eastern states, valid to 2034.
- Capital investment incentive of 30–50% of eligible investment
- Interest subvention of 3–5% for up to 7 years
- Up to 100% net GST reimbursement for up to 10 years
The new MSME limits (from 1 April 2025)
India revised the MSME classification in 2025 — the investment and turnover ceilings roughly doubled, so many businesses that were “Small” are now comfortably “Micro”. An enterprise must meet both the investment and turnover limit for its category.
| Category | Investment (plant & machinery) | Annual turnover |
|---|---|---|
| Micro | up to ₹2.5 crore | up to ₹10 crore |
| Small | up to ₹25 crore | up to ₹100 crore |
| Medium | up to ₹125 crore | up to ₹500 crore |
Udyam registration is free and is the basis for MSME lending, subsidies and delayed-payment protection. We handle classification and filing — see Udyam registration.
State subsidies & incentives
Every state runs its own investment and startup incentives on top of the central schemes — capital subsidies, SGST reimbursement, interest subvention, stamp-duty relief and more. We’ve set out each state’s current policy on its own page.
Government schemes — FAQs
What government schemes can a startup get in India?
What is the turnover limit for Startup India (DPIIT) recognition?
How much loan can I get under PM MUDRA Yojana?
Is Udyam (MSME) registration free?
What are the new MSME limits in 2025?
What is CGTMSE and how much cover does it give?
Want to know which schemes you actually qualify for?
Tell us about your business. We’ll map the central and state schemes you’re eligible for, handle the registrations, and prepare the applications.