Best Government Schemes for Youth & Startups

Best Government Schemes for Youth & Startups

India’s startup ecosystem continues to grow rapidly, and the government is introducing new schemes to support youth innovators, entrepreneurs, and small businesses. In 2025, these schemes offer funding, mentorship, tax benefits, and skill development opportunities.

This guide highlights the most important government schemes for youth and startups to explore.

1. Startup India Seed Fund Scheme (SISFS)

Purpose: Early-stage funding for startups
Benefits:

• Up to ₹20 lakh for proof of concept
• Up to ₹50 lakh for prototype development & market entry
• Disbursed through recognized incubators
  Who Can Apply: Startups under 2 years old with an innovative idea
• Apply now at  https://seedfund.startupindia.gov.in/

2. PM Mudra Yojana (PMMY)

Purpose: Loan support for small & new businesses
Loan Categories:

• Shishu: Up to ₹50,000
• Kishor: ₹50,000 – ₹5 lakh
• Tarun: ₹5 lakh – ₹10 lakh
  Best For: Youth starting small businesses, freelancers, service shops, online businesses
• Apply now at https://www.mudra.org.in/

3. Atal Innovation Mission (AIM) – NITI Aayog

Purpose: Encourage innovation, research & youth entrepreneurship
Programs Include:

• Atal Tinkering Labs (ATL)
• Atal Incubation Centres
• Atal New India Challenges
  Best For: Students, innovators & early-stage startups
• Apply now at https://aim.gov.in/

4. Credit Guarantee Scheme for Startups (CGSS)

Purpose: Government-backed loans without collateral
Benefits:

• Credit guarantee up to ₹10 crore
• Helps startups secure bank loans
  Who Can Apply: DPIIT-recognized startups
• Apply now at https://www.startupindia.gov.in/content/sih/en/credit-guarantee-scheme-for-startups.html

5. Pradhan Mantri Kaushal Vikas Yojana (PMKVY 4.0 – 2025)

Purpose: Skill development for youth
What It Offers:

• Free skill courses in 3,000+ sectors
• Certifications to boost employability
• Focus on AI, EV, robotics, drone tech
  Best For: Students, job seekers & entrepreneurs building skill-based businesses
• Website: https://www.skillindiadigital.gov.in/pmkvy-dashboard

6. SAMRIDH Scheme

Purpose: Startup growth & acceleration
Benefits:

• Funding up to ₹40 lakh per startup
• Accelerator support & mentorship
  Best For: Tech startups looking to scale
• Website https://msh.meity.gov.in/schemes/samridh

7. Stand-Up India Scheme

Purpose: Promote entrepreneurship among Women, SC/ST youth
Benefits:

• Loans from ₹10 lakh to ₹1 crore
• For starting new manufacturing, service, or trading businesses
  Who Can Apply: One SC/ST or one woman entrepreneur per bank branch
• Website https://www.standupmitra.in/

8. Digital India GEN-Next Innovation Programme (2025)

Purpose: Encouraging youth-led digital innovation
Domains:

• Cybersecurity
• AI & data analytics
• Smart applications
  Best For: Students & tech startup founders
• Website https://msh.meity.gov.in/schemes/genesis

9. National Youth Entrepreneurship Program (NYEP 2025)

Purpose: Training & startup support for youth aged 18–35
Benefits:

• Entrepreneur training camps
• Business plan development
• Government-backed mentorship

10. SIDBI Fund of Funds for Startups (FFS)

Purpose: Growth capital for startups
Benefits:

• Government invests through VC funds
• Funds used for scaling, hiring, product development
  Who Should Apply: Scalable startups looking for major investment
• Website https://www.sidbivcf.in/en/funds/ffs

The year 2025 brings huge opportunities for youth and startups through government-backed schemes. Whether you’re starting a small business, building a tech startup, or learning new skills, these schemes offer funding, mentorship, training, and growth support.