Grants and Subsidies / Startup Grants

Non-Dilutive Capital for Innovation, Employment, and Growth

Grants and subsidies are financial incentives provided by central or state governments and government-affiliated institutions to support startups, MSMEs, and innovation-driven enterprises. Unlike loans or equity funding, grants do not require repayment or share dilution.

What It Means

·       Grants: Monetary aid provided for specific purposes — R&D, innovation, export promotion, women entrepreneurship, etc.

·       Subsidies: Partial cost reimbursements for infrastructure, marketing, technology adoption, or export facilitation

·       Startup Grants: Special schemes under Startup India or DPIIT recognition for early-stage businesses with innovative models

Governing Authorities & Framework

·       DPIIT (Startup India Scheme)

·       SIDBI (Fund of Funds for Startups)

·       MSME Ministry (CLCSS, TEQUP, ZED Certification, etc.)

·       State Industrial Development Corporations (e.g., HSIIDC, RIICO, etc.)

·       Ministry of Electronics & IT (MeitY)

·       Biotechnology Industry Research Assistance Council (BIRAC)

Process

1.     Identify applicable schemes and eligibility

2.     Obtain DPIIT or MSME registration (if required)

3.     Prepare and submit grant application/proposal with business plan

4.     Presentations/interviews/tech assessments (where applicable)

5.     Grant approval and disbursement in phases/milestones

6.     Utilization reporting and post-disbursement compliance

Key Benefits

·       Non-repayable capital support

·       Recognition and certification advantages

·       Encourages R&D and product development

·       Boosts credibility among investors and customers

Ideal For

·       DPIIT-recognized startups

·       MSMEs in manufacturing, R&D, biotech, AI/ML, or sustainability

·       Women-led, SC/ST-led, or rural enterprises

·       Businesses developing IP, tech, or exportable solutions

Basic Requirements

·       Registered business with updated financials

·       Detailed project proposal or business plan

·       Proof of concept or prototype (for innovation grants)

·       PAN, GST, bank details, DPIIT/MSME certificate

How LTC can Help

·       Identifying suitable schemes based on business profile

·       Assistance with DPIIT/MSME/sectoral registrations

·       Drafting and structuring compelling project proposals

·       Coordination with nodal agencies and grant authorities

·       Post-sanction compliance and utilization reporting