Manufacturing & Industrial Startup Grants and Funding Programs in India — August 2026

As of August 2026, ten active grants, incubation programs, competitions, and awards are open to Manufacturing & Industrial startups in India. These range from state-level power subsidies for textile units to national design-innovation grants, hardware-focused vouchers, and corporate mobility challenges.

The funding landscape for the sector combines central schemes like the MSME Innovative Scheme and Coir Vikas Yojana with state initiatives such as West Bengal’s textile incentives and Tamil Nadu’s innovation vouchers. Corporate-backed programs from Maruti Suzuki, Bosch, Schaeffler, and RBIH add another layer, offering cash rewards, mentorship, and paid proof-of-concept projects to early-stage ventures.

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Active Manufacturing & Industrial Grants and Programs

West Bengal Textile Incentive Scheme: Power Subsidy (Department of MSME&T, West Bengal)

Launched on 13 December 2022, the West Bengal Textile Incentive Scheme: Power Subsidy is part of the five-year West Bengal Textile Incentive Scheme (WBTIS) run by the Department of Micro, Small and Medium Enterprises and Textiles. It provides a direct subsidy on electricity consumption for eligible textile units for five years, covering the value chain from fibre to stitched garments.

Approved projects receive financial relief on power costs, reducing operating expenses for manufacturing units. The scheme is open to textile enterprises established in West Bengal; start-ups setting up spinning, weaving, knitting, processing, or garmenting units can apply. Applications are accepted on a rolling basis.

Schaeffler Social Innovator Fellowship 2026 (India Accelerator)

Hosted by India Accelerator with funding from Schaeffler India, the Schaeffler Social Innovator Fellowship 2026 targets social entrepreneurs building sustainable solutions for pressing development challenges. The fellowship prioritises ventures from Tier II, Tier III, and rural India, offering mentorship, access to industry networks, and early-stage funding.

Manufacturing and industrial startups with a social-impact angle — for example, affordable equipment, waste processing, or clean energy products — can apply. The amount of support varies and the intake is rolling.

Coir Vikas Yojana (Ministry of MSME)

The Coir Board Schemes — Coir Vikas Yojana is an umbrella scheme from the Ministry of MSME for the coir sector. It includes:

• Coir Udyami Yojana: 40% subsidy on project cost, up to ₹10 lakh, for setting up coir processing units. The remaining 55% is available as a bank loan.
• Skill development and training programmes.
• Mahila Coir Yojana: free foot-operated spinning wheels for women artisans.
• Market promotion activities, including trade fairs and Coir Mark certification.

Manufacturing startups in the coir value chain can apply for the Coir Udyami Yojana subsidy. Applications are open on a rolling basis.

EDII-TN Innovation Voucher Program — AIC RAISE Hardware Cohort (AIC RAISE)

The EDII-TN Innovation Voucher Program — AIC RAISE Hardware Cohort is a Tamil Nadu government scheme implemented by the Entrepreneurship Development and Innovation Institute (EDII-TN), with AIC RAISE as knowledge partner for the hardware cohort. It provides two non-dilutive grant tracks: Voucher A of ₹3 lakh for building and validating a prototype, and Voucher B of ₹7 lakh for scaling a working product to commercial use.

The cohort supports startups building physical products. AIC RAISE manages applications, mentorship, pitch development, and market pilots. The program does not take equity. Applications are rolling for hardware ventures.

MSME Innovative Scheme: Design Component (Ministry of MSME)

The MSME Innovative Scheme: Design Component is a central government initiative from the Ministry of MSME that helps micro, small, and medium enterprises integrate professional design into product development. It funds design services to improve quality, functionality, and appeal, supporting the 'Make in India' and 'Atmanirbhar Bharat' objectives.

Eligible MSMEs in manufacturing can receive up to ₹40 lakh for design-related projects. The scheme is open to registered MSMEs, and applications are accepted throughout the year.

Maruti Suzuki NURTURE Cohort 4 (IIM Calcutta Innovation Park)

Maruti Suzuki NURTURE, run jointly with IIM Calcutta Innovation Park, is a pre-incubation program for early-stage startups. The Maruti Suzuki NURTURE Cohort 4 focuses on mobility convenience, tech in mobility, sustainability, social impact, and enterprise and manufacturing domains — including process automation, computer vision, industrial IoT, and generative AI.

Selected teams receive cash rewards worth ₹13 lakh, the chance for a paid proof of concept, mentorship from industry experts, and access to Maruti Suzuki’s ecosystem. The program prefers startups from eastern, north-eastern, and central India, though founders offering services anywhere in India can apply. Intake is rolling.

Swanari TechSprint 4.0: AI for Inclusive Finance (IIMA Ventures)

The Swanari TechSprint 4.0: AI for Inclusive Finance is an innovation challenge co-created by RBIH and IIMA Ventures. It invites startups to build AI-enabled financial solutions for women Self-Help Groups, focusing on credit access, savings, and digital bookkeeping. The deadline is 15 August 2026.

While the challenge is fintech-oriented, startups applying from a manufacturing or industrial context could use AI to connect SHG producers and artisans with financing and markets. Support includes mentorship and the opportunity to develop a solution that can be deployed at scale.

Open Challenge Program (OCP) 8.0 (Electropreneur Park Bhubaneswar)

The Open Challenge Program (OCP) 8.0 by Electropreneur Park Bhubaneswar is a challenge for startups in the Electronics System Design & Manufacturing (ESDM) sector. Areas include semiconductor design, AI, IoT, robotics, embedded systems, smart cities, agritech, disaster tech, PCB design, and computer vision. The program is supported by STPI, MeitY, and the Government of Odisha.

Shortlisted ventures receive incubation support, mentorship, and funding up to ₹25 lakh. The current cohort closes on 9 August 2026.

BOSCH – BMU Innovation Challenge (ACIC-BMU Foundation)

The BOSCH – BMU Innovation Challenge is a corporate competition run by ACIC-BMU Foundation in partnership with Bosch India. It seeks innovations in sustainable mobility, including connectivity, synthetic fuels, electrification, brake systems, and inclusive mobility solutions for persons with disabilities, senior citizens, and women.

Manufacturing and industrial startups working on mobility-related hardware or software can apply. Funding amounts vary, and applications are open on a rolling basis.

Scheme for Goa Rajya Vidnyanik Puraskar (Goa State Innovation Council)

The Scheme for Goa Rajya Vidnyanik Puraskar (GRVP) is an annual award from the Government of Goa, implemented by the Goa State Innovation Council. It recognises innovators and scientists whose ideas have been developed into a product or process adopted, or likely to be adopted, in Goa.

Three awards are given each financial year in the categories of Innovation, Environment, and Societal Impact. Each carries a cash prize of up to ₹2 lakh. The award is open to Goan innovators and scientists; applications are accepted on a rolling basis.

Before Applying

Several programs carry specific eligibility requirements. The West Bengal textile power subsidy is limited to textile units established in the state; the EDII-TN voucher is for hardware startups in Tamil Nadu; the Coir Vikas Yojana targets the coir sector; the MSME Design Component requires MSME registration; and the Goa Rajya Vidnyanik Puraskar is restricted to Goan innovators. Maruti Suzuki NURTURE gives preference to startups from eastern, north-eastern, and central India.

Deadlines differ: OCP 8.0 closes on 9 August 2026 and Swanari TechSprint 4.0 on 15 August 2026, while the rest run on rolling or cohort-based intake. Check the individual program pages for current application details and ensure your venture meets the location, sector, and registration criteria before applying.