Building BusinessServices

Section 42

Young founders and students

You can start a business at 18 under most schemes, and a student can register a startup while still in college. Use your college incubator first: it gives space, mentors and small grants.

Startups recognised by DPIIT in one year — the highest since 2016 · 2025-26
55,200+
Share of MUDRA loan accounts that went to new entrepreneurs · 2024-25
21%
Atal Innovation Mission budget, approved up to 31 Mar 2028 · 2024
₹2,750 crore

Schemes and loans for you

  • Startup India — DPIIT recognitionActiveFree recognition for a new company, LLP or partnership with an innovative idea. It opens tax benefits, easier compliance and startup-only schemes.Details →Official page ↗
  • Atal Innovation Mission — Atal Incubation CentresActiveNITI Aayog's mission funds incubators in colleges and institutions, where students and young founders get space, mentoring and investor links.Official page ↗
  • Credit Guarantee Scheme for Startups (CGSS)ActiveA government guarantee on loans to DPIIT-recognised startups, so they can borrow without collateral.Guarantee up to ₹20 crore per borrowerDetails →Official page ↗
  • Pradhan Mantri MUDRA Yojana (PMMY)ActiveCollateral-free bank loans for small non-farm businesses in four sizes: Shishu, Kishor, Tarun and Tarun Plus.Up to ₹20 lakh (Tarun Plus only after a Tarun loan is repaid)Details →Official page ↗
  • UP CM-YUVA (Uttar Pradesh)ActiveInterest-free loan for UP residents aged 21 to 40 who have done a recognised training course.Project up to ₹5 lakh, 100% interest subsidy for 4 years + 10% margin moneyDetails →Official page ↗
  • Tamil Nadu UYEGPActiveCapital subsidy for unemployed young people in Tamil Nadu starting a trading or business unit.25% of project cost, max ₹3.75 lakhDetails →Official page ↗
  • NIDHI-PRAYAS (DST)UnclearPrototype grants for young innovators through DST-supported centres, often based in college incubators.Up to ₹20 lakh (Level 1) or ₹40 lakh (Level 2) per innovatorDetails →Official page ↗
  • MSME Innovative — Incubation schemeUnclearMinistry of MSME money to host institutes (often colleges) to turn ideas into products.Up to ₹15 lakh per ideaDetails →Official page ↗
  • Startup India Seed Fund Scheme (SISFS)ClosedSeed grants and loans to early startups through selected incubators. The scheme is closed to new applications.Details →Official page ↗

Business ideas that suit you

Sources (9)
  1. Government recognizes more than 55,200 startups during FY 2025-26 (17 Apr 2026) · 2026
  2. 11 Years of Pradhan Mantri MUDRA Yojana (backgrounder, 8 Apr 2026) · 2026
  3. Cabinet approves continuation of the Atal Innovation Mission (25 Nov 2024) · 2024
  4. Startup India: Playbook of Government Schemes and Initiatives (June 2026) · 2026
  5. myScheme — NIDHI – PRAYAS · 2026
  6. myScheme — Incubation Scheme · 2026
  7. MUDRA — PMMY products (Shishu, Kishor, Tarun, Tarun Plus) · 2026
  8. MSME 1-Connect: Mukhyamantri Yuva Udyami Vikas Abhiyan · 2026
  9. UYEGP — scheme page · 2026

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