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

India currently offers 10 active grants, incubation programs, and competitions for manufacturing and industrial startups, from state-level subsidies to national PLI incentives. The funding landscape spans government schemes like the MSME Design Component and PLI for auto components, corporate challenges from Bosch and Maruti Suzuki, and state-specific programs in West Bengal and Tamil Nadu.

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Active Manufacturing & Industrial Grants and Programs

West Bengal Textile Incentive Scheme: Power Subsidy (Govt. of West Bengal)

Launched by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, the West Bengal Textile Incentive Scheme: Power Subsidy is a sub-scheme under the five-year WBTIS framework. It provides a direct electricity cost subsidy for new textile units established in the state, covering the entire value chain from spinning to stitched garments. The subsidy is payable for five years from commissioning, and applications are accepted on a rolling basis.

Eligibility is tied to the location and sector: the unit must operate within West Bengal and fall under the textile industry. The scheme aims to attract investment into the state's textile ecosystem by lowering operational costs. No specific deadline is set; the scheme runs until the WBTIS validity ends.

Coir Vikas Yojana (Coir Board)

The Coir Vikas Yojana is an umbrella scheme implemented by the Coir Board under the Ministry of MSME. It bundles multiple incentives for the coir sector, including:

• Coir Udyami Yojana: 40% subsidy on project cost (maximum ₹10 lakh) for setting up coir processing units, with 55% of the remaining cost available as a bank loan.
• Skill development and training programmes for entrepreneurs and workers.
• Mahila Coir Yojana: free foot-operated spinning wheels for women artisans.
• Market promotion support, including Coir Mark certification and trade fair participation.

The scheme operates on a rolling basis, with applications processed through Coir Board regional offices.

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 state scheme run by the Entrepreneurship Development and Innovation Institute (EDII-TN). AIC RAISE acts as knowledge partner for this hardware-specific cohort, handling applications, mentorship, and post-grant support.

The program offers two non-dilutive grant tracks: Voucher A gives ₹3 lakh to develop a prototype from an early idea, while Voucher B gives ₹7 lakh to scale a working product toward commercial use. Beyond the grant, selected ventures receive expert mentoring, pitch deck development, and market pilot connections. Applications are accepted on a rolling basis for hardware startups.

MSME Innovative Scheme: Design Component (Ministry of MSME)

The MSME Innovative Scheme: Design Component is a central government initiative that subsidises professional design services for MSMEs. The scheme covers design consultancy for new product development and enhancement of existing products, with support up to ₹40 lakh. It is positioned to strengthen 'Make in India' and 'Atmanirbhar Bharat' by boosting design-led innovation in the manufacturing sector.

The scheme is open to micro, small, and medium manufacturing enterprises looking to incorporate design into their product development. Applications are accepted on a rolling basis through the MSME ministry's portal.

Production Linked Incentive (PLI) Scheme for Automobile and Auto Components (Ministry of Heavy Industries)

The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry offers financial incentives to manufacturers of advanced automotive technology products in India. Run by the Ministry of Heavy Industries, the scheme aims to offset cost disadvantages faced by domestic manufacturers and promote economies of scale. Incentives are provided on sales of goods manufactured in India, with the total prize pool reaching up to ₹6,485 crore.

The scheme targets automotive OEMs and component makers producing advanced technology products such as electric drivetrain components, ADAS, and other high-value parts. Applications are rolling, with eligibility based on investment and sales thresholds.

Maruti Suzuki NURTURE Cohort 4 (IIM Calcutta Innovation Park)

The Maruti Suzuki NURTURE Cohort 4 is a pre-incubation programme run jointly by Maruti Suzuki and IIM Calcutta Innovation Park. It is designed for early-stage startups, with a preference for those based in eastern, north-eastern and central India, though startups from anywhere in India can apply. Focus domains include mobility convenience, ev and ev infrastructure, sustainability, social impact, and enterprise & manufacturing technologies such as process automation, computer vision, industrial IoT, and GenAI.

Selected startups receive cash rewards totalling ₹13 lakh and the potential for a paid proof-of-concept project. They also gain mentorship from industry experts and access to Maruti Suzuki's ecosystem and alumni network. The programme is rolling, with intake on a cohort basis.

Swanari TechSprint 4.0 (IIMA Ventures)

The Swanari TechSprint 4.0 is an innovation challenge co-created by RBIH and IIMA Ventures to build AI-based financial systems for women's self-help groups (SHGs) in India. It focuses on credit access, savings, digital bookkeeping, and related financial services. The program is structured as a competition, with capacity-building support and mentorship for selected teams.

Entries close on 15 August 2026. The challenge is open to AI/ML startups and fintech developers with scalable solutions for rural financial inclusion.

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

The Open Challenge Program (OCP) 8.0 is an initiative by Electropreneur Park Bhubaneswar, established by STPI with support from MeitY and the Government of Odisha. The program supports startups in the Electronics System Design & Manufacturing (ESDM) sector, including semiconductor design, AI, IoT, robotics, embedded systems, smart cities, agritech, disastertech, and computer vision.

Selected ventures receive incubation support and up to ₹25 lakh in funding. The competition closes on 9 August 2026, making it the most urgent deadline in this list.

BOSCH - BMU Innovation Challenge (ACIC-BMU Foundation)

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

The challenge provides a platform for innovators to engage with Bosch's technology and business teams. Applications are accepted on a rolling basis, and funding amounts vary based on the stage and quality of the solution.

NASSCOM CoE Innovation Challenge: AI-Powered Foreign Object Detection (NASSCOM CoE-IoT&AI)

The nasscom CoE Innovation Challenge targets deep-tech startups solving a specific industrial problem: detecting foreign objects inside deep vessel holds during bulk cargo unloading. The challenge is run in collaboration with a major port terminal operator and seeks AI-powered vision solutions that can operate in low-visibility conditions.

This is a competition with no fixed funding amount; the primary reward is the opportunity to pilot the solution with the port operator and gain industry validation. The application window is rolling.

Before Applying

Eligibility restrictions vary. The West Bengal Textile Power Subsidy is limited to textile units within West Bengal, while the EDII-TN Innovation Voucher is a Tamil Nadu government program. Maruti Suzuki NURTURE prioritises startups from eastern, north-eastern, and central India. MSME schemes like Coir Vikas and the Design Component are open to registered MSMEs only, and the NASSCOM challenge requires AI/deep-tech capabilities.

On deadlines, the Open Challenge Program 8.0 closes 9 August 2026 and Swanari TechSprint 4.0 closes 15 August 2026. All other programs listed here are rolling, with the West Bengal subsidy, Coir Vikas, and PLI Auto accepting applications year-round. Challenge-based programs like BOSCH-BMU and NASSCOM typically require a proposal or demo, while grant programs like the EDII-TN voucher have a structured application review.