Top 7 State Government Grants in India 2025

In 2025, if you’re a business owner, startup founder or just thinking of launching something new, state-government grants are one of the smartest support options you should explore. Across India, states are rolling out unique government funding and government schemes for entrepreneurs that go beyond the central help.

These schemes offer access to seed capital, subsidies, credit support, and mentorship, all designed to help you scale your idea, reduce risk and tap into startup funding India in a real way. Whether you want a government grant for small business, or looking at government funding for startups in India, the right state scheme can make a big difference.

1. Delhi Startup Policy 2025 (Delhi)

Key Features & BenefitsThe Delhi government’s new initiative is one of the most promising government schemes for startups in India. It features a ₹200 crore venture capital fund to provide government funding and support to early-stage ventures. The goal is to help 5,000 startups in Delhi by 2035 through business grants, incubation, and access to co-working infrastructure.

Startups can get up to ₹10 lakh per year in lease reimbursement, patent filing cost coverage up to ₹5 lakh, and various operational subsidies, great examples of government support for startups. Focus sectors include fintech, AI/ML, drones, and healthcare.

Eligibility

• Startup must be registered in Delhi (NCT).
• Less than 10 years old, innovative idea/product focus.
• Priority given to women-led and marginalized-community founders.

Benefits / Coverage

• Access to VC fund (equity/debt).
• Reimbursement of patent, marketing, and rental costs.
• Mentorship + workspace via incubators, a full government initiative for startups in India.

Application Process

• Apply through Delhi’s Startup Portal once the policy is fully launched.
• Submit startup registration, turnover, and sector info.
• Screening & evaluation by Delhi’s task force committee.

2. Maharashtra Startup, Entrepreneurship & Innovation Policy 2025 (Maharashtra)

Key Features & Benefits Maharashtra’s “MahaFund 2025” is a game-changer in government funding for startups in India, a ₹500 crore fund for seed and growth-stage support. The aim is to create 50,000 startups and 1.25 lakh entrepreneurs in five years, making it one of the biggest government schemes for entrepreneurs.

This policy also includes a 300-acre “Innovation City” near Navi Mumbai to host incubators, accelerators, and R&D centres, strengthening the overall startup funding India ecosystem.

Eligibility

• Startups must be registered in Maharashtra.
• Focus on tech, agri-tech, manufacturing, and innovation sectors.
• Preferential access for women, youth, and rural entrepreneurs.

Benefits / Coverage

• Seed capital support from ₹500 crore MahaFund.
• Subsidies for IPR, quality certifications, and incubator infrastructure.
• Easier market access through state contracts and pilot projects.

Application Process

• Apply via Maharashtra State Innovation Society portal.
• Submit business plan, founder details, and sector documents.
• Reviewed by funding committee for final approval.

3. IDEA2PoC / ELEVATE (Karnataka)

Key Features & Benefits Karnataka’s IDEA2PoC (ELEVATE) program is one of the most popular government grants for startups in India. It offers non-repayable business grants up to ₹50 lakh to help startups develop prototypes and scale their innovations without losing ownership. This is a flagship government scheme for new business that encourages innovation and employment generation in Karnataka.

Eligibility

• Startups incorporated in Karnataka.
• Under 10 years old and turnover below ₹100 crore.
• Innovation and product development focus.
• SC/ST/OBC founders eligible under special quota.

Benefits / Coverage

• Grants of up to ₹50 lakh, non-equity based government funding.
• Mentorship and technical support to commercialize ideas.
• Visibility at ELEVATE events to connect with investors.

Application Process

• Apply through the ELEVATE Karnataka online portal.
• Submit pitch deck and startup details for multi-stage review.

4. Mukhyamantri Yuva Udyami Vikas Abhiyan (Uttar Pradesh)

Key Features & Benefits This is one of the most useful government schemes for entrepreneurs in UP, focusing on youth entrepreneurs and self-employment. It provides interest-free loans up to ₹5 lakh and larger loans up to ₹20 lakh with 50% interest subsidy. It’s a perfect blend of government grant for small business and startup loan support for new founders.

Eligibility

• Resident of Uttar Pradesh.
• Age 21-40 years, min education 8th pass.
• Not a beneficiary of similar state schemes.

Benefits / Coverage

• Phase 1: Interest-free loan ₹5 lakh (4 years).
• Phase 2: Loan ₹10–20 lakh with 50% interest subsidy.
• Collateral-free loans through government-backed banks.

Application Process

• Apply online via MYUVA portal.
• Submit business proposal and identity proof.
• Approval through bank and state evaluation committee.

5. PM Vishwakarma Yojana (State-Implemented Scheme)

Key Features & Benefits This national programme, executed through state governments, supports artisans and craftspeople with training, tool kits, and government funding for startups in India’s traditional sectors. It encourages local skill development and self-employment, a core part of government initiatives for startups in India in the handicraft and MSME space.

Eligibility

• Traditional artisans and craftsmen (e.g., weavers, carpenters, goldsmiths).
• Resident of the state where the scheme is implemented.

Benefits / Coverage

• Training and ₹15,000 tool kit voucher.
• Collateral-free enterprise loans for expansion.
• Social security and insurance cover.

Application Process

• Apply via state MSME or artisan welfare portal.
• Verification by local nodal agency.

6. Rajasthan Startup Policy (via iStart Rajasthan)

Key Features & Benefits

• The Rajasthan government runs the “iStart” programme under its startup policy, offering government funding for startups in India by giving seed grants, growth-stage incentives and monthly allowances.
• Some highlights: monthly sustenance allowance of ₹10,000 per month (for one year) for eligible idea/ prototype startups.
• For manufacturing & product-based startups: seed grants up to ~₹25 lakh, reimbursement for patent/ R&D costs.

Eligibility

• Startup must be incorporated/registered in Rajasthan under the State-Startup Policy.
• Typically less than 10 years old, scalable business model, product or innovation focus.
• For monthly allowance: startup should be in idea/prototype stage and recommended by a nodal incubator.

Benefits / Coverage

• Seed grants, monthly financial support, reimbursement of marketing/ commercialisation costs (e.g., up to ₹10 lakh marketing assistance)
• Access to backend incubation support, mentorship, infrastructure in state capital and other cities.

Application Process

• Register on the iStart portal.
• Submit your startup profile, incorporation details, business plan or prototype summary.
• The nodal agency reviews, recommends, then the state committee approves.

7. Andhra Pradesh Innovation & Startup Policy (4.0)

Key Features & Benefits

• The Andhra Pradesh government launched this policy (2024-29) focused on government initiatives for startups in India including funding, infrastructure, and ecosystem support.
• Source mentions: The policy targets creating ~20,000 new startups and enabling high-potential ventures.

Eligibility

• Startups must be registered in Andhra Pradesh (as per the policy), innovation/product/service focus.
• Must fit the definition of “startup” as per central guidelines (often <10 years, turnover under certain limit).

Benefits / Coverage

• Includes funding for innovation, infrastructure support, mentoring & incubators.
• Subsidies and support for manufacturing & innovation-driven startups: e.g., monthly allowance, subsidised infrastructure.

Application Process

• Apply through the state startup portal of Andhra Pradesh. Register your startup under the scheme.
• Provide required details, evaluation process carried out by nodal agency in the state.

These aren’t just announcements, they represent real government initiatives for startups in India and real chances to raise capital.

The key is to match your business stage, sector and state eligibility, prepare your documents, and apply early. With the right support, you’re not just chasing a loan, you’re accessing game-changing business grants that can fuel your growth. Let these schemes become part of your growth plan and let your startup journey get the boost it truly deserves.

FAQs

1. What’s the difference between a state-government grant and a central scheme for startups?

A state-grant comes from a specific state’s budget and often focuses on local priorities, while central schemes cover all India and may have broader eligibility, both can be useful for government support for startups.

2. Can I apply for more than one scheme at the same time?

Yes, you can target one or more government schemes for new business as long as you meet each one’s eligibility and there’s no rule barring multiple applications.

3. How much money can I expect from these state grants?

It varies a lot, some grants offer a few lakhs for early-stage funding, others (especially funds/seed programmes) can go much higher.

4. Do I need to repay the grant or just the loan amount in these schemes?

Many grants are non-repayable (you don’t pay them back) when labelled as “grant” or “seed funding”. For schemes with “fund” or “loan”, you may need to repay or meet milestones. Always check the terms.

5. Where should I start if I want to apply for a state startup scheme?

Start by visiting your state’s startup/industry department website or the national portal listing state policies. Check eligibility, documents, and deadlines, then prepare your business plan and apply accordingly.