What Are the Best Government Schemes for Startups and MSMEs in Karnataka

Karnataka’s startup landscape is buzzing with energy and a big reason behind that is the layered support available from both the Central and State Governments. Whether you’re an early-stage innovator in Bengaluru or a rural entrepreneur in Mandya, there's a scheme, grant, or subsidy designed to help you grow.

This blog breaks down the major schemes (central and state) that entrepreneurs in Karnataka can tap into. From biotech to goat farming, and women-led startups to backward class funding, you’ll find how each scheme works, how much money it offers, who it’s for, and where StartupFlora can step in to simplify the process for you.

Central Government Schemes for Karnataka Entrepreneurs

1. Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP)

• What it does: Allows entrepreneurs (especially D.Pharm/B.Pharm holders) to open Jan Aushadhi Kendras selling affordable generic medicines.
• Support available:
  • ₹2 lakh setup grant for women, SC/ST, ex-servicemen, PWDs.
  • 20% profit margin on medicines.
  • Working capital loans through SIDBI.
• Why it matters: You earn while serving communities with affordable healthcare.
• Apply via: janaushadhi.gov.in

2. Prime Minister’s Employment Generation Programme (PMEGP)

• For whom: First-time entrepreneurs in the non-farm sector.
• Funding:
  • Up to ₹50L (manufacturing) or ₹20L (services).
  • Subsidy: 15–35% of project cost based on location and category.
• Bonus: No collateral needed for many small projects.
• Apply via: kviconline.gov.in

3. National Livestock Mission – Breed Development for Sheep/Goat Farming

• Funding:
  • 50% capital subsidy (up to ₹50L) for large-scale breeding units (500+ animals).
  • Bank loans cover the rest.
• Good for: Agro-entrepreneurs or FPOs in rural Karnataka.
• Apply via: udyamimitra.in

4. Stand-Up India

• Target group: Women, SC/ST entrepreneurs.
• Loan range: ₹10L to ₹1Cr for greenfield projects in manufacturing, trading, or agri-allied sectors.
• Special features:
  • Low interest.
  • 18-month moratorium.
  • Handholding via StandUp Mitra portal.
• Apply via: standupmitra.in

5. Agri-Clinics & Agri-Business Centres (AC&ABC)

• Who can apply: Agriculture graduates or diploma holders.
• Funding:
  • Loans up to ₹25L.
  • Subsidy ~30% via NABARD.
• Scope: Advisory services, custom hiring, input supply.
• Apply via: nabard.org

6. NBCFDC Loans for OBC Entrepreneurs

• Loan size: Up to ₹15L.
• Interest: As low as 6–8%.
• Income cap: Family income ≤ ₹3L/year.
• Apply through: State Backward Classes Corporations.

7. Biotechnology Ignition Grant (BIG)

• Offered by: BIRAC (DBT).
• Support: Up to ₹50L for early-stage biotech startups.
• Fields: Bio-agri, healthcare, environment, etc.
• Apply via: birac.nic.in

8. New Swarnima Scheme for Women (NBCFDC)

• Loan: Up to ₹2L with no equity needed.
• Rate: Just 5% interest (loan given at 2% to banks).
• Tenure: 8 years + 6-month moratorium.
• Target: OBC women.

9. RKVY – Village Soil Labs

• Purpose: Fund static/mobile soil testing labs.
• Grant: One-time ₹1.5L per lab.
• Target: Rural youth or NGOs.

10. NSFDC Credit Schemes for SC Entrepreneurs

• Loan size: ₹15L–₹5Cr.
• Support: 90–95% project cost coverage.
• Special scheme: Loan guarantees via IFCI.

11. Khadi Karigar Janashree Bima Yojana

• Insurance:
  • ₹30K–₹75K cover for artisans.
  • Scholarships for children (classes 9–12/ITI).
• Cost: Only ₹25 by artisan; rest subsidized.

12. Coir Vikas Yojana – Export & Women Artisan Schemes

• Support:
  • Export promotion (trade fairs, catalogs).
  • Women’s skilling (Mahila Coir Yojana) + equipment support.

Karnataka-Specific Startup Schemes

1. Idea2PoC / ELEVATE

• Support:
  • ₹10–50L grant-in-aid for PoC/Prototype stage startups.
  • Subsidized incubation, mentorship.
• Apply via: startup.karnataka.gov.in

2. Elevate Unnati & Elevate Women

• For whom: SC/ST or women-led startups.
• Same benefits as ELEVATE — but focused on inclusivity.

3. Fund of Funds – Karnataka + SIDBI

• Purpose: Govt co-invests with private VCs.
• Budget FY25–26: ₹600 Cr earmarked:
  • ₹300 Cr – SIDBI fund-of-funds.
  • ₹100 Cr – Deep tech (AI, semiconductor).
  • ₹200 Cr – LEAP accelerator.

4. Vriddhi Scheme

• Supports: Startup incubators and scaling startups.

How StartupFlora Helps Navigate These Schemes

Navigating 15+ central and state schemes can get overwhelming. That’s where StartupFlora steps in:

• Matchmaking: Maps your startup or MSME to the right schemes.
• Application Support: Builds project proposals, prepares financials, and uploads on relevant portals (e.g., PMEGP, BIRAC, NABARD).
• Documentation Help: From pitch decks to bank paperwork, we handle the boring bits.
• Eligibility Checklists: Ensures you don’t waste time applying where you’re not eligible.
• Real Mentoring: Our consultants guide you like co-founders — not agents.

Whether you’re running a biotech lab in Mysuru or a coir unit in Udupi, we help unlock funding, grants, and peace of mind.

❓FAQs – Karnataka Startup Schemes

Q1. Can I apply for multiple schemes?

Yes — if you meet the criteria for each. Just ensure you don’t use the same project cost twice.

Q2. Do I need a company registered in Karnataka to apply for state schemes?

Yes. Your startup must be registered in Karnataka and ideally have a working product/PoC.

Q3. What’s the minimum age to apply for PMEGP or Stand-Up India? Generally, 18+. Some schemes require technical qualifications (e.g., D.Pharm for PMBJP).

Q4. Does StartupFlora charge a fee?

Yes — but it’s performance-based or milestone-linked in most cases. We also offer free consultations.

Q5. What’s the best time to apply for ELEVATE?

Watch for calls every quarter. Proposals are selected based on innovation, traction, and scalability.

Summary

With over a dozen active schemes and ₹600+ Cr in the Karnataka pipeline alone, this is a once-in-a-decade moment for entrepreneurs. Whether you’re a founder from a tech college in Hubli or an OBC woman running a dairy unit in Hassan the ecosystem is ready for you.

And if you're unsure where to begin, remember StartupFlora isn’t just a consultancy. We’re your strategic ally in this maze.

📩 Reach out to StartupFlora today and let’s unlock the next level of funding for your venture.