India’s entrepreneurial ecosystem is not just driven by Central Government initiatives like Startup India or Make in India. A significant yet often overlooked contributor is the state-level business support ecosystem. Each Indian state, recognising its unique industrial strengths and socio-economic context, has introduced customised schemes to promote MSMEs, start-ups, and entrepreneurs within its jurisdiction.
From Gujarat’s plug-and-play infrastructure to Kerala’s start-up innovation grants, State Governments are actively supporting businesses through financial incentives, incubation, skill development, and ease of doing business reforms. In this blog, we decode major business support schemes offered by states across India—region by region—to help you make an informed choice for your venture.
North India: A Mix of Industrial Power and Start-up Promise
Haryana – Enterprise Promotion and Subsidies
Haryana Enterprises and Employment Policy (HEEP), 2020
- Interest subsidy of 5–8% on term loans for 5–7 years, with annual caps of ₹8–10 lakh depending on enterprise category and location.
- Reimbursement of 50–100% of SGST depending on category.
- Capital subsidies focused on women-led and rural enterprises.
- Single Roof Clearance System (HEPC Portal) facilitates quicker approvals.
Ideal Sectors: Automobiles, textiles, agro-processing, electronics.
Punjab – Agri-Based Industry and MSME Reboot
Punjab Industrial and Business Development Policy (2017)
- Capital subsidies up to ₹10 lakh for MSMEs.
- Interest subsidy of 5% for five years.
- 100% stamp duty exemption in specific zones.
- Invest Punjab portal offers single-window service delivery.
Uttarakhand – Hilly Incentives with Infrastructure
MSME Policy 2015 (updated in 2023)
- Land subsidy up to 50% in hilly regions.
- Freight subsidy for raw material and finished goods.
- SGST reimbursement and interest subsidies up to ₹25 lakh.
Target Sectors: Tourism, herbal products, handicrafts, pharmaceuticals.
Western India: Industrial Giants Offering Power-Packed Support
Gujarat – India’s Manufacturing Magnet
Industrial Policy 2020
- Up to 12% interest subsidy for MSMEs.
- 75% net SGST reimbursement for 10 years.
- Capital investment subsidy and exemption from electricity duty.
Gujarat Start-up Policy
- Seed funding up to ₹30 lakh.
- Monthly sustenance allowance of ₹20,000.
- Access to incubators like iCreate, GUSEC, and 50+ centres.
- GIDC provides world-class industrial infrastructure.
Maharashtra – MSME Engines & Innovation Push
Package Scheme of Incentives (PSI) 2019
- Power tariff subsidy of ₹1 per unit.
- SGST reimbursement and stamp duty exemptions.
- Special focus on ‘Aspirational Talukas’.
Maharashtra State Innovation Society (MSInS)
- Innovation awards, acceleration programmes.
- Collaboration with over 40 incubators for start-up mentoring.
Preferred Sectors: Manufacturing, fintech, food processing.
Rajasthan – Start-ups Meet Sustainability
Rajasthan Investment Promotion Scheme (RIPS) 2022
- Investment subsidy of 75% of SGST for seven years.
- Land rebate up to 25% in designated zones.
Start-up Rajasthan Policy
- Idea-stage support up to ₹5 lakh.
- Performance grants up to ₹10 lakh post-incubation.
Focus Areas: Handicrafts, e-governance, edtech, cleantech.
Southern India: Start-up Culture and Policy Depth
Karnataka – India’s Start-up Capital
New Industrial Policy 2020–25
- SGST incentives for MSMEs and large industries.
- Power tariff concessions and interest subsidies.
Karnataka Start-up Policy 2022
- Seed funding up to ₹50 lakh via the Elevate programme.
- Special grants for women, rural, and SC/ST start-ups.
- Bengaluru hosts 400+ accelerators and venture capitalists—ideal for tech ventures.
Tamil Nadu – Inclusive Growth with Sectoral Focus
MSME Policy 2021
- 25% capital subsidy (up to ₹1 crore).
- Interest subvention of 3–5% for term loans.
- 100% stamp duty waiver in backward districts.
Start-up & Innovation Policy 2018–2023
- Seed funding up to ₹10 lakh.
- Equity funding via the TN Start-up & Innovation Fund (₹75 crore corpus).
Sector Focus: Textiles, electronics, renewable energy.
Kerala – Innovation and Rural Start-up Boost
Kerala Start-up Mission (KSUM)
- ₹12 lakh seed fund for DPIIT-registered start-ups.
- Grants for R&D and market validation.
- Infrastructure support via 30 incubators.
- Women-led start-ups receive monthly allowances and marketing assistance.
- Young Innovators Programme for student entrepreneurs.
Eastern India: Incentives Driving Emerging Ecosystems
West Bengal – Focus on MSMEs and Manufacturing
West Bengal MSME Policy 2019–24
- Capital investment subsidy up to ₹50 lakh.
- Interest subsidy of 6–9% for five years.
- 100% waiver of electricity and stamp duties.
- Shilpa Sathi Portal enables single-window approvals.
Preferred Sectors: Textiles, gems & jewellery, food processing.
Odisha – Ease of Doing Business with Sectoral Thrust
Odisha Industrial Policy Resolution (IPR) 2022
- Capital grant up to ₹10 crore for priority sectors.
- 100% exemption from electricity duty for five years.
- Subsidies for women and SC/ST entrepreneurs.
Start-up Odisha
- Monthly allowance of ₹20,000 for early-stage founders; ₹22,000 for women, SC/ST, SEBC, and transgender entrepreneurs.
- Grants for product development and market access.
- Support for IP filings and incubator infrastructure.
Growing Sectors: Food, mining, logistics, apparel.
Jharkhand – Raw Potential, Growing Reforms
Jharkhand Industrial and Investment Promotion Policy (JIIPP) 2021
- SGST reimbursement up to 75%.
- Capital subsidy up to ₹5 crore.
- 100% exemption from electricity duty for five years.
Jharkhand Start-up Policy 2021
- Seed capital support up to ₹10 lakh.
- Mentorship and networking support through recognised incubators.
North-East India: Frontier Markets with Attractive Subsidies
Assam – Gateway to ASEAN and Eastern Trade
Industrial and Investment Policy 2019
- 30–50% capital investment subsidy.
- Interest subsidy up to ₹20 lakh per year.
- Employment-linked incentives.
Start-up Assam
- Product development grants up to ₹10 lakh.
- Access to regional incubators and patent support.
Focus Sectors: Agri-processing, bamboo, tea, tourism.
Meghalaya, Manipur, Mizoram – High Support, Low Competition
Most North-Eastern states operate under the North East Industrial Development Scheme (NEIDS) 2017, offering:
- Capital investment subsidy of 30% (up to ₹5 crore).
- Transport subsidy up to 90%.
- GST reimbursement and employment incentives.
Meghalaya also runs innovation hubs for social enterprises and climate-tech start-ups.
Union Territories and Special Regions
Delhi – India’s Policy and Tech Experiment Lab
Delhi Start-up Policy (Draft, 2022)
- Plans to offer seed capital up to ₹10 lakh.
- Preference in public procurement for local start-ups.
- Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) provides land, funding, and marketing support.
High-Performing Sectors: Technology, logistics, education.
Jammu & Kashmir and Ladakh – New Policy, New Markets
New Central Sector Scheme (2021)
- 30% capital incentive (up to ₹5 crore).
- 6% working capital interest incentive.
- Sectoral focus on tourism, wool, handicrafts, and horticulture.
- SIDCO and JKTPO provide business handholding and promotion support.
How to Access These State Schemes
Entrepreneurs can benefit from these initiatives by:
- Visiting official state portals such as Invest Punjab, MSME Rajasthan, or KSUM.
- Using single-window clearance systems available in most states.
- Collaborating with state-run incubators and start-up cells for mentorship and grants.
- Joining regional industry associations such as CII, FICCI, and TiE for updates and networking.
Final Thoughts
India’s states are not merely geographical divisions—they are distinct economic ecosystems, each offering tailored incentives, policy support, and sectoral strengths. Whether you are setting up a manufacturing unit, launching a SaaS venture, or building a women-led enterprise, choosing the right state could unlock access to vital funding, subsidies, and strategic infrastructure.
Do not just follow the crowd—align your business model with the state that offers the best fit for your vision.
Start smart. Scale strategically. Choose your state wisely.
