India’s startup ecosystem continues to gain momentum, as the government deepens its support through a trio of focused schemes under the Startup India initiative. Launched in January 2016, the initiative aims to foster innovation, investment, and entrepreneurship by helping startups navigate early-stage funding, credit, and incubation challenges.
These support mechanisms are tailored to meet startups at various stages of their growth, and the data as of June 30, 2025, highlights their growing scale and impact.
Fund of Funds, Seed Support, and Credit Guarantee
The Fund of Funds for Startups (FFS) is managed by the Small Industries Development Bank of India (SIDBI). It channels capital into SEBI-registered Alternative Investment Funds (AIFs), which then invest in promising startups. AIFs must commit to investing at least double the amount they receive under FFS. As of mid-2025, FFS has made net commitments worth ₹9,994 crore across 141 AIFs.
The Startup India Seed Fund Scheme (SISFS), operational since April 2021, supports early-stage startups through incubators. ₹945 crore has been sanctioned to 219 incubators under this scheme.
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The Credit Guarantee Scheme for Startups (CGSS), active since April 2023 and managed by the National Credit Guarantee Trustee Company (NCGTC), enables collateral-free loans through recognized financial institutions. So far, 289 loans worth ₹667.85 crore have been guaranteed.
Women entrepreneurship gets a focused push
Alongside these flagship schemes, the government is promoting inclusive entrepreneurship through the Swavalambini Project, aimed at developing women entrepreneurs. Jointly implemented by the National Institute for Entrepreneurship and Small Business Development (NIESBUD), the Indian Institute of Entrepreneurship (IIE), and the Women Entrepreneurship Platform (WEP) under NITI Aayog, the project is running as a pilot in five states: Uttar Pradesh, Telangana, Meghalaya, Mizoram, and Assam.
It offers entrepreneurship awareness training, development programs, and faculty training to build institutional capacity. As of June 2025, 591 students and 43 faculty members have already undergone training.
A growing ecosystem with national coordination
Together, these initiatives reflect the government’s commitment to building a structured, multi-level support ecosystem for startups. By connecting funding, mentorship, credit access, and inclusion, India aims to not only scale innovation but also ensure equitable participation across sectors, regions, and demographics.