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 CENTRAL GOVERNMENT INCENTIVES

​1. Capital Subsidy Schemes​​

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Credit Linked Capital Subsidy Scheme (CLCSS)

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  • 15–25% subsidy for technology upgradation of plant & machinery

  • ​Applicable to MSMEs in manufacturing and service sectors

​2. Interest Subsidy

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Interest Equalization Scheme (IES)

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  • 3–5% interest subvention on pre- and post-shipment export credit

  • For MSME and non-MSME exporters in specific secto

 

Technology Upgradation Fund Scheme (TUFS)

  • For textile sector, provides capital and interest subsidy on modernization

4. Startup & Innovation Incentives

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Startup India Seed Fund & DPIIT Recognition

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  • Capital support, tax exemption for 3 years, fast-tracked IP and funding access

  • ​Relaxations in public procurement norms

​5. Income Tax Incentives

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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)

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RoDTEP (Remission of Duties and Taxes on Exported Products)

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  • Refund of embedded taxes and duties not refunded under GST

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RoSCTL (Rebate of State and Central Taxes and Levies)

  • 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

  • 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

  • Capital grants up to 35% for machinery and infrastructure

​2. Agro & Dairy

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  • NABARD subsidies for cold storage, agri-processing units

  • 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

  • Capital support for EV charging infrastructure

How BlueCrown Supports

  • Eligibility analysis & subsidy planning

  • ​Mapping client's investment/project to relevant schemes​

  • Complete documentation, representation, and follow-up

  • ​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?

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A flagship program of CSIR for public-private partnerships in breakthrough R&D.

​Eligibility

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High-innovation, technology-led projects across biotech, pharma, energy, materials, etc.

Support Offered

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  • Grants (up to 100% for public institutions)

  • Soft loans (for private industry partners, typically with ~3–5% interest and deferred repayment terms)

Client Benefits

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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

  • Collaborative projects (industry-academia-research consortia)

  • ​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

  • ​Requires concept note, joint proposal (if consortium), and high innovation value

2. TDB (Technology Development Board)

​What it is?

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Department of Science & Technology initiative offering financial support for commercialization of indigenous technology.

​Terms

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~5% interest, 10-year repayment

Support Offered

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  • Soft loans up to 50% of project cost

  • ​Equity participation in tech ventures (case-specific)

​Client Benefits

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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.)

  • Scaling from pilot stage to market-ready product

  • ​New product lines, import substitutes, green technologies

Points to consider

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  • Technology should be developed in India

  • Product must show societal or strategic benefit (e.g., clean energy, healthcare, EV, agri-tech)

  • ​Soft loan covers up to 50% of project cost with 3–5% interest

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