Print Friendly, PDF & Email

Startup India Seed Fund Scheme

Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Startup India Seed Fund Scheme:


The Startup India Seed Fund Scheme (SISFS) has been launched.

About the Startup seed fund:

  • The Fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
  • 945 Crore corpus will be divided over the next 4 years for providing seed funding to eligible startups through eligible incubators across India.
  • The scheme is expected to support an estimated 3,600 startups through 300 incubators.
  • Nodal Department: Department for Promotion of Industry and Internal Trade.


  • The SISFS will Secure seed funding, Inspire innovation, Support transformative ideas, Facilitate implementation, and Start startup revolution.
  • The Scheme will create a robust startup ecosystem, particularly in Tier 2 and Tier 3 towns of India, which are often deprived of adequate funding.

Need for the scheme:

  • Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise.
  • Funding from angel investors and venture capital firms becomes available to startups only after the proof of concept has been provided. Similarly, banks provide loans only to asset-backed applicants.
  • It is essential to provide seed funding to startups with an innovative idea to conduct proof of concept trials.


Prelims Link:

  1. What is Startup India scheme?
  2. About the Startup India Seed Fund Scheme (SISFS).
  3. Eligibility.
  4. Benefits.

Mains Link:

Discuss the significance of the Startup India Seed Fund Scheme (SISFS).

Sources: PIB.