Startup India Grants: Empowering Innovation through Government Support

The Government of India, under its Startup India initiative, has launched several grant schemes to provide crucial financial assistance to early-stage startups. These grants aim to foster innovation, facilitate product development, support market entry, and ultimately enable startups to scale and attract further investment. Here are three prominent grant schemes:

1. Biotechnology Ignition Grant (BIG) Scheme

The Biotechnology Ignition Grant (BIG) Scheme is a flagship program of the Biotechnology Industry Research Assistance Council (BIRAC), a not-for-profit Section 8, Schedule B, Public Sector Enterprise, set up by the Department of Biotechnology (DBT), Government of India. It's specifically designed to support early-stage innovative projects in the biotechnology sector.

Key Objectives:

• Ideation to Proof of Concept (PoC): To provide financial assistance to validate an innovative idea and establish its initial proof of concept.

• Nurture Entrepreneurship: To enable translation of promising ideas into commercially viable products or technologies addressing unmet needs.

• Strengthen Biotech Ecosystem: To contribute to making the Indian biotech startup ecosystem globally competitive.

Key Features & Benefits:

• Grant-in-Aid: Provides a grant of up to ₹50 Lakhs for a period of 18 months. This is a non-dilutive grant, meaning it does not require equity in return.

• Mentorship Support: Grantees receive continuous mentoring support from BIRAC and designated BIG Partners (incubators). This includes technical, intellectual property (IP), legal, regulatory, business development, and investor connect support.

• Sector Focus: Primarily supports innovations in Healthcare, Lifesciences, Diagnostics, Medical Devices, Drugs, Vaccines, Industrial Biotechnology, Agriculture, Secondary agriculture, Waste Management, Sanitation, Clean Energy, and related areas.

• Incubation Requirement: Applicants are typically required to be incubated in a recognized incubator (which may or may not be supported by BIRAC) at the time of application or have identified one. A Letter of Intent (LoI)/Memorandum of Understanding (MoU) with an incubator is often required for final approval.

Eligibility Criteria (for Individual Applicants, can also apply as a company):

• Must be an Indian citizen.

• The primary applicant should be the Project Leader.

• If employed by an academic/research organization, a No Objection Certificate (NOC) is required, indicating the organization's policy to allow the individual to accept funding and create an enterprise.

• Expected to identify a preferred incubator.

• The startup should be incorporated in India with a minimum 51% of its equity held by Indian citizens (if applying as a company).

Application Process: The call for applications is periodically released by BIRAC through its website and BIG Partner incubators. The process involves submitting a detailed project proposal, followed by rigorous evaluation and pitching rounds.

2. TIDE 2.0 – Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme

The Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme is an initiative of the Ministry of Electronics and Information Technology (MeitY), Government of India. Its objective is to promote tech entrepreneurship by providing financial and technical support to incubators that are engaged in supporting ICT (Information and Communication Technology) startups.

Key Objectives:

• Promote Tech Entrepreneurship: Foster innovation and support startups leveraging emerging technologies.

• Financial & Technical Support to Incubators: Empower incubators across India to provide comprehensive support to ICT startups.

• Holistic Ecosystem Creation: Build necessary linkages to support technology startups and incubation centers.

Key Features & Benefits (primarily delivered through incubators):

• Funding to Startups (via Incubators):

  • Entrepreneur-in-Residence (EiR) Grant: Up to ₹4 Lakhs for idea/Proof of Concept (PoC) stage startups for validation and development (typically for 12 months).

  • Grant-in-Aid: Up to ₹7 Lakhs for prototype stage startups for product development (typically for 12 months).

  • Some incubators may also provide support up to ₹40 Lakhs for product development and market outreach through follow-on fundraising support.

• Focus Areas: Supports startups primarily using emerging technologies such as IoT, AI, Blockchain, Robotics, AR/VR, etc., in pre-identified areas of societal relevance like Healthcare, Education, Agriculture, Financial Inclusion, Infrastructure & Transportation, Environment & CleanTech, and Clean Energy Solutions.

• Incubation Support: Provides holistic incubation support including co-working space, mentorship (technical, IP, legal, business), lab access, cloud credits, and networking with investors.

• Implementation Model: Implemented through a network of 51 incubators across India, categorized into three groups (G1C, G2C, G3C) based on their capabilities.

Eligibility Criteria for Startups (General):

• Must be an Indian citizen (for individual applicants/founders).

• Startup must be incorporated in India with at least 51% equity held by Indian citizens.

• Should be working on an innovative technology product or solution.

• Preference often given to women entrepreneurs, innovators under 35, and ideas with granted/published patents.

• The applicant should ideally be committed to pursuing the entrepreneurial venture full-time.

Application Process: Startups apply to eligible incubators that are partners under the TIDE 2.0 scheme. The incubator then conducts its own evaluation process, which may include an expert review, pitches, and due diligence, before recommending for funding.

3. Atal Innovation Mission (AIM) Initiatives (Various Programs)

The Atal Innovation Mission (AIM), a flagship initiative of NITI Aayog, Government of India, is designed to promote a culture of innovation and entrepreneurship across the country. While not a single grant scheme like BIG or TIDE 2.0, AIM encompasses several programs that provide financial support, incubation, and mentorship.

Overall Objectives of AIM:

• Foster Innovation Mindset: Create a problem-solving and innovative mindset from schools to higher education and industry.

• Build Entrepreneurial Ecosystem: Establish and strengthen an ecosystem for startups and entrepreneurs across various sectors.

• Promote Grassroots Innovation: Support innovation in unserved and underserved regions.

Key Programs with Grant Components:

• Atal Tinkering Labs (ATLs):

  • Grant: Provides a grant-in-aid of up to ₹20 Lakhs to schools for setting up and operating ATLs for a period of 5 years. This fosters curiosity, creativity, and imagination in young minds (Grade 6 to 12) by providing access to tools like 3D printers, robotics, etc.

• Atal Incubation Centres (AICs) / Established Incubation Centres (EICs):

  • Grants: AIM provides grants of up to ₹10 Crores over a period of 3-5 years to universities, institutions, or private players to establish and scale world-class incubators. These incubators then provide physical infrastructure, mentorship, and support to startups.

  • Startups incubating at AIM-supported incubators benefit from the ecosystem and potentially from direct funding/grants facilitated by the incubator.

• Atal Community Innovation Centres (ACICs):

  • Grant: AIM grants up to ₹2.5 Crores (subject to a partner proving equal or greater matching contribution) for 5 years to set up ACICs. These centers aim to promote technology-led innovation in underserved regions (Tier 2/3 cities, aspirational districts, etc.).

• Atal New India Challenges (ANIC) & Atal Grand Challenges:

  • Grants: These are open challenges that invite innovators and startups to design and demonstrate market-ready products based on cutting-edge technologies to solve specific national problems (e.g., in clean energy, mobility, healthcare).

  • Applicants with promising solutions can be awarded grants of up to ₹1 Crore (for ANIC), strictly on a milestone basis, to develop and deploy their products.

Eligibility for Startups/Innovators (Varies by program):

• Generally, applicants for ANIC/Grand Challenges need a clear articulation of a strong business model, a plan to deploy technologies, and identification of market channels.

• Startups should often be DPIIT-recognized for certain benefits or incubator support.

• The specific criteria for grant applications vary significantly depending on the particular AIM program and the call for applications.

Application Process: Applications for AIM's various programs are typically announced on the official AIM website (aim.gov.in) and NITI Aayog's platforms. The process involves submitting detailed proposals, followed by a multi-stage evaluation and selection by expert committees.

These Startup India grant schemes collectively contribute significantly to nurturing innovation and entrepreneurship at different stages and across diverse sectors, playing a vital role in building India's startup ecosystem.