CENTRAL GOVERNMENT INCENTIVES
1. Capital Subsidy Schemes
Credit Linked Capital Subsidy Scheme (CLCSS)
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15–25% subsidy for technology upgradation of plant & machinery
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Applicable to MSMEs in manufacturing and service sectors
2. Interest Subsidy
Interest Equalization Scheme (IES)
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3–5% interest subvention on pre- and post-shipment export credit
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For MSME and non-MSME exporters in specific secto
Technology Upgradation Fund Scheme (TUFS)
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For textile sector, provides capital and interest subsidy on modernization
4. Startup & Innovation Incentives
Startup India Seed Fund & DPIIT Recognition
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Capital support, tax exemption for 3 years, fast-tracked IP and funding access
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Relaxations in public procurement norms
5. Income Tax Incentives
Section 80-IAC
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Tax holiday for 3 years in a block of 7 years for eligible startups
Section 35(2AB)
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Weighted deduction for R&D expenditures
3. Export Incentives (Under Foreign Trade Policy)
RoDTEP (Remission of Duties and Taxes on Exported Products)
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Refund of embedded taxes and duties not refunded under GST
RoSCTL (Rebate of State and Central Taxes and Levies)
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For garments and made-ups exports
STATE GOVERNMENT INCENTIVES
(Varies state-to-state: e.g., Maharashtra, Gujarat, MP, Karnataka, Tamil Nadu, etc.)
1. Capital Investment Subsidy
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20% to 60% subsidy on fixed capital investment in plant, machinery, and building
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Higher benefits for backward regions, women entrepreneurs, and Mega Projects
2. Interest Subsidy
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Reimbursement of interest paid on term loans (up to 5–9% for 5–7 years)
3. Electricity Duty Exemption
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100% exemption on electricity duty for 3–15 years for eligible industrial units
5. Employment Generation Subsidy
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Reimbursement of EPF/ESIC contribution for new jobs created (for 3–5 years)
6. SGST Refund
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Refund of State GST paid on sales for a specified number of years or until the subsidy cap is reached
7. Logistics & Infrastructure Support
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Subsidies for setting up warehouses, cold chains, packaging centers
4. Stamp Duty Exemption
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100% exemption on stamp duty for land/lease deeds for eligible new/expansion projects
SECTOR-SPECIFIC INCENTIVES
1. Food Processing
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Under PMFME & MOFPI schemes
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Capital grants up to 35% for machinery and infrastructure
2. Agro & Dairy
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NABARD subsidies for cold storage, agri-processing units
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Dairy processing plant support schemes
3. Textile
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ATUFS, PLI Scheme for textiles, and state incentives for garments and technical textiles
4. Stamp Duty Exemption
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PLI (Production Linked Incentive) for electronics manufacturing
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Capital support for EV charging infrastructure
How BlueCrown Supports
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Eligibility analysis & subsidy planning
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Mapping client's investment/project to relevant schemes
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Complete documentation, representation, and follow-up
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Audit-proof subsidy claim files and utilization compliance
R&D Grants and Soft Loans
1. NMITLI (New Millennium Indian Technology Leadership Initiative)
What it is?
A flagship program of CSIR for public-private partnerships in breakthrough R&D.
Eligibility
High-innovation, technology-led projects across biotech, pharma, energy, materials, etc.
Support Offered
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Grants (up to 100% for public institutions)
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Soft loans (for private industry partners, typically with ~3–5% interest and deferred repayment terms)
Client Benefits
Access to non-dilutive funding with IP protection and commercialization support.
Who can apply?
Eligible Entity Type
Private Companies (including MSMEs)
Public Sector Units (PSUs)
Academic Institutions
National Laboratories (CSIR, ICAR, ICMR)
NGOs / Trusts
Criteria
Must be registered in India, engaged in R&D or tech commercialization
Working in technology or industrial innovation
IITs, NITs, universities involved in applied research
Usually lead or partner in the consortium
Must have proven R&D/technology track record (rare)
It is ideal for whom?
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Deep-tech and high-risk R&D projects
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Collaborative projects (industry-academia-research consortia)
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Disruptive technologies in biotech, nanotech, materials, pharma, agritech, energy, and AI
Points to consider
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Not for incremental product development or routine business expansion
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Requires concept note, joint proposal (if consortium), and high innovation value
2. TDB (Technology Development Board)
What it is?
Department of Science & Technology initiative offering financial support for commercialization of indigenous technology.
Terms
~5% interest, 10-year repayment
Support Offered
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Soft loans up to 50% of project cost
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Equity participation in tech ventures (case-specific)
Client Benefits
Financing for high-tech, pre-commercial, or early commercialization stages—especially when bank loans aren’t viable.
Who can apply?
Eligible Entity Type
Indian Companies (Private Limited or Public Limited)
Startups (DPIIT-recognized)
Joint Ventures (including with foreign entities)
Technical Entrepreneurs
Criteria
Must have a proven prototype or pilot-ready innovation
With a working product, IP/technology in place, and commercialization plan
Must have majority Indian shareholding
Backed by incubation centers or technology parks (with proof of IP/PoC)
It is ideal for whom?
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Commercialization of indigenous innovations (hardware/software/engineering/biotech/etc.)
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Scaling from pilot stage to market-ready product
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New product lines, import substitutes, green technologies
Points to consider
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Technology should be developed in India
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Product must show societal or strategic benefit (e.g., clean energy, healthcare, EV, agri-tech)
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Soft loan covers up to 50% of project cost with 3–5% interest