Starting a green business in India has never been more exciting. As the world looks for cleaner and smarter solutions, India is giving eco-friendly startups a big boost through government support. In 2025, several government grants and incentives are helping green startups grow faster, save costs, and make a real impact on the planet.
Why the Indian Government Supports Green Startups
India has committed to achieving net-zero carbon emissions by 2070. To reach this goal, the government actively supports businesses that develop green technology and eco-friendly innovations. Green startups help India transition to renewable energy, improve waste management, and build sustainable cities.
Government support for such startups ensures:
- Economic growth with minimal environmental damage.
- Job creation in sustainability sectors.
- Technological advancement for cleaner and smarter solutions.
- Reduced dependency on fossil fuels and imported energy.
In 2025, this support comes in the form of grants, subsidies, tax incentives, and incubation programs.
Key Government Grants and Subsidies for Green Startups in India 2025
Let’s look at the major grants and incentives available for green entrepreneurs this year.
Startup India Seed Fund Scheme (SISFS)
The Startup India Seed Fund Scheme is a major initiative that helps new businesses in India kickstart operations. It provides financial support to early-stage startups in the form of seed funding.
For 2025, green startups can receive up to INR 50 lakh under this scheme.
Highlights:
- Funding up to INR 20 lakh for product development and proof of concept.
- Up to INR 50 lakh for prototype development, trials, and commercialization.
- Startups must be recognized by DPIIT (Department for Promotion of Industry and Internal Trade).
- Preference given to clean-tech and green technology startups.
How to Apply:
Visit the Startup India portal, create your startup profile, and apply directly under the Seed Fund Scheme section.
Technology Development Board (TDB) – Ministry of Science and Technology
The Technology Development Board funds technology-driven projects focused on environmental sustainability.
Who can apply:
Startups working on renewable energy, waste management, biodegradable materials, or clean manufacturing technologies.
- Funding support:
- Partial funding in the form of soft loans or equity support.
- Covers up to 50 percent of the project cost.
Key advantage: TDB helps you validate and scale eco-innovations with commercial viability.
To apply, submit your proposal on the TDB India website with project details, business model, and financial projections.
MNRE’s Solar and Renewable Energy Subsidy Programs
The Ministry of New and Renewable Energy (MNRE) plays a big role in promoting solar, wind, and biogas-based solutions in India.
Subsidy highlights for 2025:
- Up to 30–40 percent subsidy for solar rooftop installations.
- Financial incentives for solar manufacturers under the Production Linked Incentive (PLI) Scheme.
- Startups can partner with MNRE-approved projects to build installations and access grants.
Ideal for:
Startups in solar energy, battery storage, sustainable lighting solutions, and energy efficiency sectors.
Atal Innovation Mission (AIM) – NITI Aayog
The Atal Innovation Mission encourages entrepreneurship across India. Under its various programs, AIM supports startups that innovate in sustainability and clean technology.
Major benefits for green startups include:
- Access to Atal Incubation Centres (AICs) that specialize in clean tech.
- Partnership opportunities with corporates for green projects.
- Funding support for proof-of-concept and prototype development.
Apply through the AIM website or connect with your nearest AIC for mentorship and funding access.
PRISM Scheme – Promoting Innovations in Individuals, Startups, and MSMEs
Managed by the Department of Scientific and Industrial Research (DSIR), the PRISM initiative supports innovators developing environment-friendly technologies.
Key Features:
- Provides funding up to INR 20 lakh for individuals and startups working on green innovations.
- Support for proof-of-concept, product development, and commercialization.
- Assistance for patent filing and market linkage.
Eligibility: Indian startups, individuals, or MSMEs working in climate tech, sustainable agriculture, or renewable energy.
SIDBI Green Finance Scheme
The Small Industries Development Bank of India (SIDBI) has introduced multiple financing options to encourage sustainable business practices.
Green Startup Initiative under SIDBI includes:
- Loans and venture financing for clean energy and green manufacturing startups.
- Access to credit guarantees and lower interest rates for eco-friendly projects.
- Technical support to measure and track energy efficiency improvements.
SIDBI collaborates with international organizations like JICA and the World Bank to provide funds to Indian green startups under these programs.
Faster Adoption and Manufacturing of Electric Vehicle (FAME) India Scheme – Phase II
If your startup operates in electric mobility, FAME India is the key program to explore in 2025.
Program details:
- Focus on developing electric vehicles (EVs), charging infrastructure, batteries, and related supply chain.
- Incentives for startups producing EV components or offering EV-based logistics services.
- Buyer subsidies that increase product demand and sales for EV businesses.
- FAME India Phase II runs through 2025–26, providing wide-ranging financial assistance and tax exemptions for electric mobility innovation.
Bioenergy, Biogas, and Waste-to-Wealth Programs
The Swachh Bharat Mission (SBM) and Waste to Wealth Mission under the Office of the Principal Scientific Adviser are key enablers for green startups in the waste sector.
Available incentives:
- Financial grants for converting agricultural waste, municipal waste, and sewage into usable energy or compost.
- Support for developing bio-CNG and waste-to-energy projects.
- Pilot project funding and commercialization help for sustainable waste management technologies.
- Startups can register their project with the SBM portal and access multiple funding and mentorship opportunities.
Green Hydrogen Mission – 2025 Update
One of the flagship initiatives for 2025 is India’s National Green Hydrogen Mission.
With a budget of over INR 19,000 crore, this mission supports startups developing hydrogen-based fuel technologies, electrolyzers, and hydrogen transportation solutions.
Incentives include:
- R&D grants for hydrogen production efficiency.
- Capital subsidies for setting up pilot facilities.
- Tax incentives for green hydrogen supply chain innovations.
This is one of the most promising government-backed opportunities for climate tech startups this year.
SIDBI Fund of Funds for Startups (FFS)
Under the Startup India initiative, this fund invests in venture capital funds that further invest in Indian startups, including those focusing on green innovation.
Benefits for green startup founders:
- Access to indirect funding through accredited VC partners.
- Priority given to sustainable technology entrepreneurs.
- Helps scale early-stage businesses with growth capital.
If you’re looking for investors or growth-stage capital, explore the VC funds backed by FFS and reach out for funding discussions.
Tax Incentives for Green Startups in 2025
In addition to grants and loans, the government offers several tax benefits to startups working towards sustainability.
Key reliefs include:
- Income tax exemption for the first three years under Section 80-IAC.
- GST benefits for solar products, EVs, and waste recycling projects.
- Accelerated depreciation benefits for renewable energy equipment.
- Carbon credit trading opportunities for validated clean energy projects.
These incentives help entrepreneurs reinvest profits into innovation and growth while keeping overall costs lower.
State-Level Incentives for Green Businesses
Several Indian states have launched their own eco-business grant programs, tailored to local industries.
Top State Initiatives:
- Gujarat: Offers capital subsidies and electricity duty exemption for solar startups.
- Tamil Nadu: Focuses on biogas and EV manufacturing startups through investment subsidies.
- Karnataka: Provides incentives for clean mobility startups under its Electric Vehicle and Energy Storage Policy.
- Maharashtra: Supports waste-to-energy projects and green manufacturing through MSME development grants.
- Rajasthan: Offers subsidies for installing renewable energy systems in industrial areas.
Always check your state’s Department of Industries website for the latest subsidy announcements.
How to Apply for Green Startup Grants in India
Getting government funding is not as complicated as it seems if you follow the right steps:
Register your startup:
Get recognized by DPIIT on the Startup India portal.
Identify the right scheme:
Select a program that matches your startup’s area—renewable energy, waste management, mobility, etc.
Prepare a strong proposal:
Include project goals, feasibility study, sustainability impact, and financial projections.
Apply online:
Most schemes accept applications through their official ministry or department websites.
Follow up and participate:
Stay active in government-organized startup events to increase your visibility and network for faster approvals.
Tips to Increase Grant Approval Chances
- Ensure your business idea has measurable environmental impact.
- Highlight innovation and potential for large-scale adoption.
- Show clear commercialization and revenue potential.
- Include details of your sustainability metrics — such as emission reduction or waste saved.
- Keep documentation complete, including incorporation details, GST certificate, and bank statements.
- Participating in recognized incubators or accelerators (like Atal Incubation Centres or NASSCOM programs) can also strengthen your proposal.
The Future of Green Entrepreneurship in India
By 2025, India’s green startup ecosystem is projected to grow at nearly 20 percent annually. The shift toward renewable energy, circular economy models, and electric mobility is opening vast opportunities for new-age entrepreneurs.
With government support, startups no longer need to worry only about funding; they can focus on building scalable impact-driven solutions. As environmental regulations tighten and consumers become eco-conscious, green innovation is not just a trend — it’s the future of smart business in India.
Conclusion
Government grants and incentives for green startups in India in 2025 are opening new doors for eco-entrepreneurs. With the right support, you can turn your sustainable idea into a successful business that helps the environment and the economy. So take that step, explore the available schemes, and be part of India’s green revolution.
FAQs
1. What qualifies as a green startup in India?
Any startup focusing on environmental sustainability, renewable energy, waste reduction, or cleaner technologies qualifies as a green startup.
2. How can I apply for the Startup India Seed Fund Scheme?
Register your business on the Startup India portal, verify your DPIIT recognition, and then apply under the Seed Fund Scheme section.
3. Are tax exemptions available for green startups?
Yes, new startups recognized by DPIIT can avail of three-year tax exemptions, lower GST rates, and accelerated depreciation on renewable energy equipment.
4. Who offers subsidies for electric vehicle startups in India?
The Department of Heavy Industries provides incentives under the FAME India Scheme to startups producing EVs and related technologies.
5. Can individuals apply for green innovation grants?
Yes, individuals and MSMEs can apply for DSIR’s PRISM scheme or TDB funding if they have a viable eco-innovation idea ready for prototyping or commercialization.