State startup grants in India: what each state offers
State startup grants in India are paid under each state's startup policy, mostly as monthly sustenance allowances, idea or prototype grants and seed support. The largest single grant in this list is Karnataka's ELEVATE, at up to Rs 50 lakh. Amounts and rules change with each policy.
By Akshay Kendurkar, CEO, MyStartupValley
Most founders hear about central schemes first. But nearly every state now has its own startup policy, and many pay money straight to recognised startups: a monthly allowance, an idea grant, or seed and marketing support.
This research note covers states whose official policy or portal we could open. It is a partial list, and state policies are revised often, so treat every amount as a starting point and check the current notice.
What kinds of grants do state startup policies offer?
State policies mostly offer four kinds of support: a monthly sustenance allowance for founders, an idea or prototype grant, seed support for product development and marketing, and reimbursements such as patent costs. Many add higher amounts for women founders or for SC and ST entrepreneurs.
Our main source for comparison is DPIIT's States' Startup Ranking, 5th edition, released in January 2026. Its state reports describe each policy, but they assess the period from 1 January 2023 to 30 November 2024, so newer policies may have replaced what they describe.
How much do the main states pay startups?
Among the states checked, the largest single grant is Karnataka's ELEVATE, at up to Rs 50 lakh, followed by Gujarat's seed support and Kerala's hardware R&D grant at up to Rs 30 lakh each. Most other grants here fall between Rs 2.4 lakh and Rs 16 lakh, often in steps by stage.
| State | Policy and year | Headline startup grants |
|---|---|---|
| Karnataka | Karnataka Startup Policy 2025 to 2030 | ELEVATE: one-time grant-in-aid up to Rs 50 lakh, idea to proof of concept; ELEVATE Unnati up to Rs 50 lakh for SC and ST founders |
| Kerala | Kerala Technology Startup Policy 2014, revised 2017; KSUM Innovation Grant | Idea Rs 3 lakh; productisation Rs 7 lakh (Rs 12 lakh for women or transgender founders); market acceleration Rs 10 lakh; scale-up Rs 15 lakh; R&D Rs 30 lakh for hardware |
| Gujarat | Scheme for Assistance for Startups/Innovation, Gujarat Industrial Policy 2020 | Seed support up to Rs 30 lakh; allowance Rs 20,000 a month for a year (Rs 25,000 with a woman co-founder) |
| Tamil Nadu | Tamil Nadu Startup and Innovation Policy 2023 | TANSEED seed support of Rs 10 lakh, raised to Rs 15 lakh for women-led startups |
| Rajasthan | Rajasthan Startup Policy 2022 | Ideation grant up to Rs 2.4 lakh, plus Rs 60,000 for women-led startups |
| Odisha | Odisha Startup Policy 2016, amended 2017 and 2018 | Allowance Rs 20,000 a month for a year (Rs 22,000 for women, transgender and listed social categories); product development and marketing up to Rs 15 lakh (Rs 16 lakh) |
| Uttar Pradesh | UP Startup Policy 2020, First Amendment 2022 | Allowance Rs 17,500 a month for a year; prototype grant up to Rs 5 lakh; seed or marketing support up to Rs 7.5 lakh |
| Maharashtra | State Innovative Startup Policy 2018, now replaced by the 2025 policy | Patent support up to Rs 2 lakh (Indian) and Rs 10 lakh (international), at 80% of cost |
Sources: Karnataka's Startup Policy 2025 to 2030; the KSUM Innovation Grant page; DPIIT ranking reports for Gujarat, Tamil Nadu, Rajasthan, Uttar Pradesh and Maharashtra; and Startup Odisha with its ranking report.
What do the largest state grants pay for?
The largest grants pay for getting from idea to a working product. Karnataka's ELEVATE funds idea to proof-of-concept startups, and Gujarat's seed support covers product development, marketing and professional help. Karnataka's is a one-time grant-in-aid, not a monthly payment, so plan what it must buy before you apply.
Karnataka's policy says ELEVATE has run since 2017 and will set aside 10% of its grants for deep tech, assistive technology and sustainability startups. Winners also get mentoring and incubation at subsidised rates in government-backed centres.
Gujarat's report also lists additional assistance of up to Rs 10 lakh, approved by the State Level Empowered Committee. The scheme sits under the Gujarat Industrial Policy 2020, so check whether it has been extended or replaced before you apply.
Which state grants carry conditions or repayments?
Several state schemes are not plain grants. Tamil Nadu's ranking report calls TANSEED a seed equity initiative, Rajasthan's scale-up fund pays up to 50% of the amount a startup raised as debt convertible to grant, and Odisha ties its later payments to utilisation certificates. Read the terms before counting the money.
Odisha's portal sets out the process: half of the product development grant is paid in advance and the rest after a utilisation certificate with bills. Its monthly allowance runs for one year, and a startup can claim it only once.
Uttar Pradesh caps its seed and marketing support at 25 startups per incubator per year, according to its ranking report. Rajasthan adds a startup equity fund that invests up to Rs 5 crore per startup through an AIF, which is investment, not a grant.
A state grant is a bet on where you will build. Read the eligibility clause before the amount.
How do state grants differ from central schemes?
Central seed schemes, such as the Startup India Seed Fund Scheme and DST's NIDHI programmes, route money through incubators that select startups. State grants usually go from the state's nodal agency to startups it has recognised. Check each scheme's rules on taking other government money for the same work.
Our map of government funding for startups in India shows how the central schemes reach founders. Incubators can claim their own state support too; see our guide to grants for incubators.
Should founders outside the big hubs look at state grants?
Yes. Every state in this list pays recognised startups directly, while private funding clusters in a few cities. Where angel and VC cheques are scarce, a state grant can be a founder's first money that costs no equity, and it can carry a startup to the proof an investor wants to see.
Our analysis of startup funding by state compares recognition counts with where private cheques go.
What should founders check before applying?
Check four things: whether you must be recognised by the state and registered there, which stage the grant targets, whether it is a grant, a loan or equity-linked, and when the next call opens. Then read the current notice on the state portal, because the amounts above may already have changed.
This list leaves out states whose official policy or portal we could not open, including Telangana's grant amounts. It is research, not advice; for tax treatment of any grant, ask a chartered accountant.
Questions
Which state gives the highest startup grant in India?
Among the policies checked here, Karnataka's ELEVATE gives the largest single grant: a one-time grant-in-aid of up to Rs 50 lakh for idea to proof-of-concept startups, under the Karnataka Startup Policy 2025 to 2030. Gujarat's seed support and Kerala's R&D grant for hardware startups, each up to Rs 30 lakh, come next. This list is partial, and amounts change.
Do I need to be registered in a state to get its startup grant?
Usually yes. State grants are generally paid to startups recognised under that state's policy, which typically means being registered or operating in the state. Each scheme sets its own test, so read the eligibility clause of the current policy or scheme notice before applying.
Are state startup grants the same as the Seed Fund Scheme?
No. The Startup India Seed Fund Scheme is a central scheme that routes money through selected incubators. State grants come from state budgets under state startup policies and are often paid to recognised startups directly, as allowances, idea or prototype grants and seed or marketing support.
Do state startup grants have to be repaid?
Most allowance and idea grants do not, but some state support does carry terms. Tamil Nadu describes TANSEED as a seed equity initiative, and Rajasthan's scale-up fund is debt convertible to grant. Odisha releases half of its product development grant in advance and the rest after a utilisation certificate.
Sources: DPIIT, States' Startup Ranking 5th edition, state reports for Gujarat, Kerala, Maharashtra, Odisha, Rajasthan, Tamil Nadu and Uttar Pradesh, Jan 2026 · Government of Karnataka, Department of Electronics, IT, Bt and S&T, Karnataka Startup Policy 2025-2030 · Kerala Startup Mission, Innovation Grant scheme page · Startup Odisha, FAQ and policy page
For more on how startup funding works in India, read the MyStartupValley blog or visit mystartupvalley.com.