As we all know India is a growing country and developing in every aspect. India has seen a remarkable growth in entrepreneurship over the past few years. With the rise in the startups, MSMEs, and homegrown businesses, the Indian government has initiated various schemes to empower small enterprises. Top MSME Government Schemes which are helping the small businesses in various aspects.
Starting or growing a small business in India can be challenging especially when access to finance, infrastructure and mentorship is limited. But need not to worry, the Indian government offers several schemes and subsidies for the small businesses, helping them grow operations and boost innovation.
In this article we will discuss top Indian government schemes for MSMEs (Micro, Small, and Medium and enterprises), their eligibility criteria, major details and how to apply.
Role of Government Schemes in Small Businesses
In India small businesses play a vital role in India’s economy, contributing over 30% to the GDP and also generating employment for the millions. The government actively support his sector through initiatives that provide benefits such as:
- Easy access to credit
- Subsidies and grants
- Skill development
- Infrastructure support
- Market linkage assistance
These kinds of MSME schemes in India are designed to encourage startups, reduce business costs, and boost long-term sustainability.
Top Top MSME Government Schemes for Small Businesses in 2025
Pradhan Mantri Mudra Yojna (PMMY)
Pradhan Mantri Yojna scheme initiated by the central government mainly targets the Micro-enterprises, startups and small businesses. Under this scheme government offers loans up to ₹10 lakh to non-corporate, non-farm small businesses through these 3 loan categories:
- Shishu (Up to ₹50,000).
- Kishore (₹50,001-₹5 lakh)
- Tarun (₹5 lakh- ₹10 lakh)
Benefits of PMMY
- No collateral required.
- Low interest rates (starting from 8%)
- Flexible repayments options.
How to apply: To apply for the Mudra loan you can visit your nearest bank branch or you van apply online by visiting the official website www.mudra.org.in
Credit Guarantee Funds Trust for Micro and Small Enterprises(CGTMSE)
This scheme is for the Micro Small and Medium Enterprises that are in the need of the collateral-free credit. This scheme offers a credit guarantee of up to ₹2 crore for the eligible businesses through partner banks and NBFCs.
Benefits of CGTMSE
- Provides loans without the need for third-party collateral.
- This is applicable for new and existing enterprises.
- This scheme covers up to 75-85% of the loan amount.
How to apply: apply through lending institutions participating in the scheme.
Stand-up India Scheme
This scheme mainly targets the women entrepreneurs and the SC/ST business owners that are in need of the financial help to grow. This scheme encourages marginalized communities to start businesses by offering bank loans between ₹10 lakh and ₹1 crore.
Benefits of Stand-up India scheme
- This scheme can provide you max 85% project cost financing.
- Handholding support for the businesses setup
- Mainly focus on the manufacturing, services, and trading sectors
Eligibility criteria for Stand up India
- SC/ST or women entrepreneurs.
- Greenfield businesses (first-time venture)
PMEGP- Prime Minister’s Employment Generation Program
This scheme is mainly targeting the First-time entrepreneurs in rural and urban areas of India. PMEGP is a credit-linked subsidy program administered by Khadi and Village Industries Commission(KVIC).
Benefits of PMEGP
- Subsidy of 15%-35% on the project cost.
- Provides loans up to ₹25 lakh for manufacturing.
- Loans up to ₹10 lakh for the service businesses.
How to apply: Submit application online via official site of PMEGP
Startup India Scheme
Startup India scheme is targeting all the startups and innovation-driven businesses. Launched to promote innovation and new ideas. This scheme provides tax exemptions, fundings support, and also provides mentorship to the startups recognized by DPIIT.
Benefits of Startup India Scheme
- This scheme provides 3-years income tax exemption
- Self-certification under the labor and environmental laws
- Fast-track patent application processing.
Eligibility criteria for Startup India
- Businesses must be less than 10 years old.
- Annual turnover should not exceed ₹100 crore.
- Startup must work towards innovation or improvement of product/services.
Comparison of these Government Schemes
| Scheme | Loan Amount/Subsidy | Target Group | Collateral Required |
| MUDRA Yojana | ₹10,000 – ₹10 lakh | All small businesses | No |
| CGTMSE | Up to ₹2 crore | MSMEs | No |
| Stand-Up India | ₹10 lakh – ₹1 crore | SC/ST & Women Entrepreneurs | No |
| PMEGP | Up to ₹25 lakh | Rural/Urban Entrepreneurs | No |
| Startup India | Tax exemption & funding | Recognized startups | No |
Documents required to apply for the Schemes:
Here is the list of the documents required to apply for the schemes mentioned in this articles some of them may vary according to the scheme.
- Aadhar card and Pan card
- Proof of business plan or project report.
- Address proof and passport-size photos.
- Bank account details.
- Caste certificate (if applicable for Stand-up India)
How to Register Your Business for Govt Schemes
Before you apply for any of the government schemes it is important to register your business as an MSME on the Udyam Portal
Step to register
- Visit Udyam portal
- Enter Aadhar and Pan card details
- Fill the business details (type, location, activity)
- Receive Udyam Registration Certificate.
Conclusion
If you are an entrepreneur or running a small business in India, Government of India is offering various schemes That can offer a crucial boost to your business. Whether it’s through a capital, mentorship, or relaxation in the tax. Make the most of the initiatives like Mudra loan, CGTMSE, PMEGP, and Startup India to kickstart or scale your business in 2025.
Stay updated an always keep the documents of your business ready and choose the scheme that aligns best for your business. With the right approach and support your small business can go a long way.