India has emerged as a hotbed for innovation and entrepreneurship in recent years, thanks in part to key government initiatives like Startup India and Stand-Up India. But while the names sound similar, these schemes serve different purposes and cater to distinct audiences. If you’re an aspiring entrepreneur or small business owner wondering which one applies to you, here’s your complete guide to understanding Startup India vs Stand-Up India in 2025.
Overview of Startup India
Launched in January 2016 by the Department for Promotion of Industry and Internal Trade (DPIIT), Startup India is designed to create a strong ecosystem for innovation and entrepreneurship in India.
Objectives of Startup India:
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Encourage innovation and job creation
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Provide an enabling environment for early-stage startups
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Facilitate funding, tax benefits, and ease of doing business
Key Features:
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Startup Recognition Certificate from DPIIT
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3-year income tax exemption
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80% rebate in patent filing fees
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Access to the Fund of Funds for Startups (FFS) with a corpus of ₹10,000 Cr
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Easier public procurement norms
Who Can Apply?
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Any innovative business entity (Private Limited, LLP, or Partnership firm)
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Incorporated within the last 10 years
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Annual turnover less than ₹100 Cr
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Must be working towards innovation, development, or improvement of products or services
Overview of Stand-Up India
Launched in April 2016, Stand-Up India is governed by the Department of Financial Services (DFS). Its focus is not just entrepreneurship—but inclusive entrepreneurship among underrepresented groups.
Objectives of Stand-Up India:
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Promote entrepreneurship among SC/ST and women
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Provide access to bank loans for new businesses
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Encourage self-employment and empowerment in rural and semi-urban areas
Key Features:
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Bank loans from ₹10 lakh to ₹1 crore
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Greenfield enterprises only (first-time ventures)
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Composite loan covering both term loan and working capital
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Refinance support through SIDBI
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Handholding support and skill development via SIDBI & NABARD
Who Can Apply?
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Women entrepreneurs (any caste)
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SC/ST entrepreneurs (men or women)
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First-time business owners starting a manufacturing, trading, or service enterprise
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Must be aged 18 years and above
Startup India vs Stand-Up India: Key Differences
| Feature | Startup India | Stand-Up India |
|---|---|---|
| Launch Year | 2016 | 2016 |
| Focus Area | Innovation and scalable startups | Inclusive entrepreneurship (SC/ST/Women) |
| Target Group | All eligible startups | SC/ST and Women entrepreneurs |
| Funding Type | Tax exemptions, equity support | Bank loans (₹10 lakh – ₹1 crore) |
| Sector Eligibility | Any sector focused on innovation | Manufacturing, Trading, Services |
| Eligibility | New/startup firms up to 10 years old | First-time entrepreneurs only |
| Admin Body | DPIIT, Ministry of Commerce | DFS, Ministry of Finance |
| Application | Online via DPIIT portal | Through bank branches or online portal |
Which Scheme is Right for You?
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Choose Startup India if you are building a tech startup, D2C brand, or SaaS business and want access to tax exemptions, investor connect, and innovation support.
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Opt for Stand-Up India if you are a woman or belong to the SC/ST category, and wish to launch your first-time business in manufacturing, trading, or services, especially with a need for loan-based capital.
Final Thoughts
While both Startup India and Stand-Up India are government-backed schemes supporting entrepreneurship, their target demographics and funding mechanisms differ significantly. Choosing the right initiative depends on your business model, funding needs, and background.
In fact, if you meet the eligibility for both, you can benefit from multiple schemes simultaneously—many entrepreneurs use Startup India for recognition and tax benefits, and Stand-Up India for funding.
As the Indian entrepreneurial ecosystem grows more inclusive and innovation-driven in 2025, make sure to leverage the right support to launch, scale, and succeed.
