Indian Government Schemes for New Businesses Investing Above ₹10 Crore
The Indian government actively supports entrepreneurship and large-scale investment through several initiatives tailored for new businesses and startups with investments exceeding ₹10 crore. These schemes foster innovation, domestic manufacturing, infrastructure development, and technological advancements via capital support, credit guarantees, and incentives.
1. 💰 Fund of Funds for Startups (FFS)
- Objective: FFS provides capital to startups at various stages (early, seed, growth), helping reduce reliance on foreign funding and nurturing domestic capital.
- Details: Managed by SIDBI, this ₹10,000 crore corpus contributes to SEBI-registered Alternative Investment Funds (AIFs), which then invest twice that amount into Indian startups. The process ensures deep capitalization and robust funding for homegrown enterprises.
- Eligibility: Startups recognized by DPIIT and AIFs registered with SEBI, with a demonstrated investment strategy focusing on startups.
2. 🏛️ Credit Guarantee Scheme for Startups (CGSS)
- Objective: Provides collateral-free guarantees for loans extended to eligible startups, making debt finance more accessible and reducing lender risk.
- Details: The revised 2025 scheme now offers guarantee coverage up to ₹20 crore per startup, with 85% coverage for loans up to ₹10 crore and 75% for loans above ₹10 crore. The annual guarantee fee for startups in select sectors has been reduced for greater cost-efficiency.
- Eligibility: DPIIT-recognized startups that are not in loan default or classified as NPAs may access the scheme via scheduled banks, NBFCs, or SEBI-registered AIFs.
3. 🌟 Production-Linked Incentive (PLI) Schemes
- Objective: Designed to boost domestic manufacturing and attract investment in key sectors by offering financial incentives linked to performance metrics such as incremental sales and investment volumes.
- Details: Covers 14 strategic sectors including electronics, pharma, auto, specialty steel, renewable energy, food products, textiles, solar PV, and more. Incentives range from 4–10% based on sector and performance, disbursed annually for set periods.
- Eligibility: Companies making investments exceeding ₹10 crore and meeting sector-specific criteria via ministry-led portals.
4. 🔬 Deeptech Fund of Funds
- Objective: Supports startups innovating in deep tech areas such as AI, quantum computing, semiconductors, and other advanced technologies.
- Details: The 2025 budget announced a ₹10,000 crore corpus for deeptech, further expanding SIDBI’s mandate and positioning India as a global technology leader.
- Eligibility: DPIIT-recognized startups focusing on advanced, next-generation technologies.
5. 📈 SEBI Angel Fund Regulations
- Objective: Streamlines angel investments, formalizes the ecosystem, and strengthens investor protection.
- Details: Angel funds can raise capital only from accredited investors (income ≥ ₹2 crore/year or net worth ≥ ₹7.5 crore). Co-investment by sponsors is mandated and minimum investment requirements removed for enhanced participation.
- Eligibility: SEBI-registered angel funds and accredited investors can participate in early-stage startup funding.
6. 💎 IndiaAI Mission
- Objective: Drives AI startup formation and advanced research through nationwide investments and infrastructure.
- Details: With a ₹10,372 crore outlay, the mission establishes AI curation units, labs in educational institutes, and funds research and startups; ₹2,000 crore is allocated in the 2025 budget for immediate support.
- Eligibility: AI-focused startups and research organizations are primary beneficiaries.
📊 Summary Table
| Scheme | Key Features | Investment Scope |
|---|---|---|
| FFS | ₹10,000 crore corpus, supports SEBI-registered AIFs | Early, seed, growth stages |
| Credit Guarantee Scheme | Up to ₹20 crore guarantee, 85% coverage ≤ ₹10 crore | Debt for startups |
| PLI Schemes | Incentives for 14 sectors, sales-linked payouts | Large-scale manufacturing |
| Deeptech Fund of Funds | ₹10,000 crore for advanced technologies | Next-gen deeptech startups |
| SEBI Angel Fund Regulations | Accredited investors, sponsor co-invest, no min. invest. | Early-stage ventures |
| IndiaAI Mission | ₹10,372 crore, labs and curation centers | AI startups, research |
💡 How to Apply
- FFS and CGSS: Startups must obtain DPIIT recognition and approach SEBI-registered AIFs or member institutions (banks, NBFCs).
- PLI schemes: Companies must apply using their respective sectoral ministry portals, such as the Ministry of Electronics & IT for electronics.
- Angel Funding: Connect with SEBI-registered angel funds or platforms like Indian Angel Network.
🌍 Additional Opportunities
- Infrastructure: National Logistics Plan seeks to lower logistics costs to 8% of GDP, benefiting large-scale enterprises.
- Export Promotion: Schemes like Advanced Authorization and EPCG facilitate imports/exports for high-investment ventures.
✅ Conclusion
With a mix of robust funding, credit guarantees, performance-based incentives, and technology-centric missions, the Indian government is at the forefront of empowering ambitious startups and large businesses. These schemes catalyze access to capital, innovation, manufacturing, and global competitiveness. Enterprises investing over ₹10 crore should seize these opportunities to drive growth and help transform the Indian economy.
For further details and applications visit official portals: Startup India and DPIIT.