Government schemes for entrepreneurs in India are opening up new possibilities for startups, MSMEs, and self-employed individuals. With easy funding, mentorship programs, and credit support, these initiatives are helping thousands of small business owners turn ideas into sustainable ventures.
In this guide, we’ll explore the top government schemes for entrepreneurs in India, their key benefits, and how you can apply for them in 2026.
Why Government Schemes Matter for Entrepreneurs
Government schemes are designed to help entrepreneurs overcome common business challenges — from lack of funding to limited market access. They not only offer financial aid but also promote innovation and skill development across India’s startup ecosystem.
Key Benefits of Government Schemes:
- Easy access to business loans and funding
- Subsidies and incentives for MSMEs and startups
- Training and mentorship programs
- Support for export and manufacturing units
- Special focus on women and first-time entrepreneurs
Top Government Schemes for Entrepreneurs in India
Let’s take a closer look at the most impactful government schemes for entrepreneurs currently active in India.
1. Startup India Scheme
Launched by: Department for Promotion of Industry and Internal Trade (DPIIT)
Purpose: Promote innovation and simplify startup growth in India
Under this flagship initiative, recognized startups can access tax exemptions, self-certification under labor laws, and funding through the Fund of Funds for Startups (FFS).
Best For: Early-stage startups looking for recognition, mentorship, and funding opportunities.
2. Pradhan Mantri Mudra Yojana (PMMY)
Purpose: Provide loans to micro and small businesses without collateral
Entrepreneurs can avail loans under three categories — Shishu (up to ₹50,000), Kishor (₹50,000–₹5 lakh), and Tarun (₹5–10 lakh).
Best For: Small business owners, traders, and self-employed professionals.
🔗 Apply via your bank or Mudra portal
3. Stand-Up India Scheme
Purpose: Empower women and SC/ST entrepreneurs with bank loans
The scheme offers loans from ₹10 lakh to ₹1 crore for setting up new enterprises in manufacturing, trading, or services.
Best For: Women-led startups and entrepreneurs from SC/ST categories.
🔗 Know more at Stand-Up India portal
4. MSME SAMBANDH and SAMADHAAN
Purpose: Ensure transparency and timely payments for MSMEs supplying to government agencies
- SAMADHAAN: Helps MSMEs resolve delayed payment issues
- SAMBANDH: Tracks public procurement to ensure fair opportunities
Best For: Registered MSMEs with B2G (business-to-government) contracts.
5. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Purpose: Provide collateral-free credit up to ₹2 crore
Banks and NBFCs extend credit to eligible entrepreneurs, with a portion guaranteed by the government — reducing lending risk.
Best For: Entrepreneurs expanding their business or starting manufacturing units.
6. Pradhan Mantri Employment Generation Programme (PMEGP)
Purpose: Generate employment through micro-enterprises
Entrepreneurs can get subsidies up to 35% for starting small businesses under the Khadi and Village Industries Commission (KVIC).
Best For: Rural and small-town entrepreneurs.
7. Trade Infrastructure for Export Scheme (TIES)
Purpose: Improve export infrastructure and boost India’s global trade
This scheme helps set up logistics parks, testing centers, and export warehouses to promote exports of Indian goods.
Best For: Export-oriented startups and MSMEs.
8. Coir Udyami Yojana
Purpose: Support coir-based industries and rural manufacturing
Entrepreneurs can get up to 40% subsidy on project costs for setting up coir units, promoting sustainable employment.
Best For: Rural business owners and eco-friendly entrepreneurs.
🔗 Know more on Coir Board site
How to Apply for Government Schemes
- Register your business under the Udyam Portal → udyamregistration.gov.in
- Apply for Startup India recognition → startupindia.gov.in
- Approach your bank or NBFC for funding under Mudra, CGTMSE, or Stand-Up India.
- Prepare documents — Aadhar, PAN, business plan, and project report.
- Monitor updates on the official MSME or Startup India portals for new schemes.
Tips to Improve Your Success Rate
- Register your business legally (as Proprietorship, LLP, or Pvt. Ltd.)
- Maintain transparent financial records and GST filings
- Create a strong business plan and highlight social or local impact
- Join entrepreneurship training programs like CSB’s Business Accelerator
The Future of Entrepreneurship in India
With growing digital adoption and government support, 2026 will be a defining year for entrepreneurs. These government schemes for entrepreneurs provide not just funding — but also credibility, mentorship, and the foundation to scale globally.
Conclusion
India’s startup ecosystem is thriving, and the government schemes for entrepreneurs discussed above can help you take the first step toward success. From easy financing to export promotion, these initiatives are designed to turn small ideas into sustainable businesses.
If you want to learn how to apply these schemes effectively and build a growth-ready business, explore the Business Programs by Catalyst School of Business (CSB) — where industry experts guide you step-by-step in your entrepreneurial journey.
👉 Visit csbworld.com to learn more.
