India’s ₹10,000 Cr Startup Push: Fueling Innovation, One Venture at a Time

India’s startup story has entered a dynamic new chapter in 2025, with the government intensifying its support through enhanced funding, innovative credit mechanisms, and policy-level interventions. The Union Budget 2025-26 has reinforced the country’s commitment to building a world-class entrepreneurial ecosystem, making India the third-largest startup hub globally with over 1.25 lakh DPIIT-recognized ventures.

Major Initiatives Powering the 2025 Startup Landscape:

• Startup India Seed Fund Scheme (SISFS):
  Aimed at nurturing early-stage startups, this scheme provides grants up to ₹20 lakh and convertible debt up to ₹50 lakh to help entrepreneurs move from idea to market-ready product.
• Fund of Funds for Startups (FFS):
  With a ₹10,000 crore corpus managed by SIDBI, this fund invests indirectly in startups through SEBI-registered AIFs. As of this year, more than 900 startups have received funding under this initiative.
• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):
  This program enables startups and MSMEs to access collateral-free loans of up to ₹2 crore, boosting risk-taking among banks and lending institutions.
• Pradhan Mantri Mudra Yojana (PMMY):
  Targeting micro and nano-entrepreneurs, especially in rural and semi-urban areas, PMMY has sanctioned over 40 crore loans, each up to ₹10 lakh, since inception.
• SAMRIDH Scheme:
  This innovation-driven scheme supports tech startups with funding up to ₹40 lakh. Focused on digital and deep-tech solutions, it fosters collaboration with accelerators and private investors.
• Customisable Credit Card for Micro Enterprises:
  Introduced in the 2025-26 Budget, this new facility offers Udyam-registered micro-enterprises access to ₹5 lakh in working capital through a flexible credit card model, encouraging wider digital adoption.

Together, these initiatives reflect a strategic thrust to empower entrepreneurs, scale innovation, and create jobs—moving India closer to its vision of becoming a $5 trillion economy.

What Do Founders Think?

Raj Shah, CEO & Co-founder of Coherent Market Insights, reflects on India’s evolving startup landscape: “Just a few years ago, funding was scarce, and early-stage startups faced uphill battles. Today, with initiatives like the Fund of Funds for Startups, Startup India Seed Fund, and Credit Guarantee Fund, the funding ecosystem has transformed significantly. Startups are now emerging from Tier 1 and Tier 2 cities, with Indian investors and banks actively backing innovation. These policies, including SAMRIDH and PMMY, are not just fuelling growth—they’re paving the way toward a $5 trillion economy and a self-reliant, Viksit Bharat by 2047.”

Manish Chheda, Founder & MD Propango Strategic Solutions Pvt. Ltd. said, “India’s startup ecosystem is scaling rapidly, and the government’s role has been pivotal. The Rs10,000 crore Fund of Funds for Startups, along with initiatives like SAMRIDH and Udyam credit cards, shows how inclusive the support has become—empowering both tech disruptors and micro-entrepreneurs. 

It’s no longer just about unicorns, but about real, on-ground innovation from every corner of the country. Yes, we still need faster disbursals and simpler processes, but the direction is right. Even in real estate, there’s a huge opportunity to bring in startup-style thinking—through tech, digital models, and agile project execution. It’s time to rethink and evolve.”

Praveen Kumar Urmila Owner, Klikk

Delhi-NCR, India said, “As founders of Klikk, we’re inspired by the government’s proactive support for startups. Initiatives like the Seed Fund, Mudra Yojana, and the new credit card for micro enterprises give genuine hope to small entrepreneurs like us. We may not have access to big investors or networks, but we have passion and ideas. What we now seek is clear guidance—how to apply, what documents are needed, and where to begin. With the right direction, we’re ready to take the leap. This kind of inclusive support can empower grassroots ventures like Klikk to thrive and be part of India’s digital growth story.”