The government has provided a significant boost to the Indian startup ecosystem through the Startup India Seed Fund Scheme (SISFS). Under this initiative, 217 incubators have been selected with an approved funding of Rs 916.91 crore. Jitin Prasada, Minister of State for Commerce and Industry, informed the Lok Sabha that the scheme offers financial assistance to eligible startups through incubators.
This support covers proof of concept, prototype development, product trials, market entry, and commercialization. The Experts Advisory Committee (EAC) of SISFS evaluates and selects incubators for fund allocation. Each selected incubator forms an Incubator Seed Management Committee (ISMC) to evaluate and select startups for seed support.
As of January 31, 2025, Rs 351 crore has been provided to 2,647 startups under the scheme. The total corpus of the fund is Rs 945 crore for four years.
Incubator funding update
Out of the approved Rs 917 crore for incubators, Rs 493.2 crore had been disbursed by January 31, 2025. Maharashtra has emerged as the leading beneficiary, with incubators selecting 470 startups for Rs 62 crore in funding. Karnataka follows with 344 startups receiving Rs 58.7 crore, while Tamil Nadu has 262 startups with Rs 34.2 crore in funding.
Uttar Pradesh supports 190 startups with Rs 22.7 crore, and Gujarat has 187 startups with Rs 22.5 crore in funding. More than 16,500 direct jobs have been created by the beneficiary startups. Maharashtra also leads in the number of incubators selected, with 29 incubators receiving Rs 56 crore for startup investments.
Gujarat and Karnataka each have 22 incubators, with Rs 39.5 crore and Rs 55.2 crore disbursed, respectively. Minister Prasada emphasized that the government constantly undertakes various efforts for the development and growth of the startup ecosystem under the Startup India initiative. These steps are inclusive and support entrepreneurs from disadvantaged backgrounds, as well as rural and tribal communities.
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