Government Expands Startup India Support with Three Flagship Schemes

In a clear signal of continued policy focus on nurturing India’s startup ecosystem, the Government of India has reaffirmed its commitment through three major flagship schemes under the Startup India initiative. The schemes — Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS) — are designed to support startups across various lifecycle stages and demographics, with a strong emphasis on empowering women-led ventures. Press Information Bureau

The information was provided by Minister of State for Commerce & Industry, Shri Jitin Prasada, in a written reply to the Rajya Sabha on 12 December 2025. 

FFS: Catalysing Venture Capital Flow into Startups

The Fund of Funds for Startups (FFS) aims to catalyse private capital in the startup ecosystem by providing growth capital to SEBI-registered Alternative Investment Funds (AIFs), which subsequently invest in promising enterprises. Operationalised by the Small Industries Development Bank of India (SIDBI), FFS has seen investments totalling around ₹2,838.9 crore into 154 women-led startups between 2020 and 31 October 2025. 

This strategic infusion of funds has helped strengthen investor confidence and create a more vibrant funding environment, especially for underrepresented founders.

SISFS: Boosting Early-Stage Innovation

The Startup India Seed Fund Scheme (SISFS), implemented from 1 April 2021, focuses on providing crucial financial support to seed-stage startups via selected incubators. As of 31 October 2025, incubators under this programme have approved about ₹284.79 crore in funding to 1,635 women-led startups, fostering innovation at the grassroots level. 

This early capital support has enabled entrepreneurs to develop prototypes, validate products, and scale operations with institutional backing.

CGSS: Enabling Collateral-Free Lending for Startups

To address credit access challenges faced by emerging businesses, the government operationalised the Credit Guarantee Scheme for Startups (CGSS) from 1 April 2023. Managed by the National Credit Guarantee Trustee Company (NCGTC) Ltd, CGSS offers credit guarantees for loans extended to startups through eligible financial institutions.

Under CGSS, 24 collateral-free loans worth approximately ₹33.17 crore have been guaranteed to women-led startup borrowers as of 31 October 2025, signalling increased institutional support for early-stage enterprises without stringent security requirements. Press Information Bureau

Women-Led Startups at the Centre of Growth Initiatives

A notable feature of all three schemes is the emphasis on supporting women-led startups — a priority aligned with the government’s broader focus on inclusive economic participation. Detailed annexures accompanying the Rajya Sabha response show:

• Substantial state/UT-wise capital deployment under FFS;

• Approved seed funding across incubators under SISFS;

• Guaranteed credit support for emerging women-headed ventures.

These figures underscore significant progress in promoting gender diversity in entrepreneurship. 

Skill Development, Mentorship & Outreach

Beyond financial incentives, the government also implements mentorship and capacity-building programmes for women entrepreneurs. Initiatives such as the Women Capacity Development Programme (WING), virtual incubation programmes, accelerated startup workshops, regional outreach campaigns like ASCEND, and the SuperStree Podcast help equip founders with essential business skills. Press Information Bureau

Government efforts also integrate recognition and visibility mechanisms through engagement with national awards and state startup ranking exercises, further encouraging women entrepreneurs across sectors.

Looking Ahead

The Government’s multi-pronged strategy — spanning capital support, credit facilitation, institutional incubation, and mentorship outreach — reinforces India’s ambition to build a robust, inclusive and globally competitive startup ecosystem.

As SMEStreet continues to track policy impact on micro, small and medium enterprises, this refreshed thrust under Startup India represents a transformative opportunity, particularly for women innovators seeking to scale their ventures to national and global markets.

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