Manufacturing & Industrial Startup Grants and Funding Programs in India — August 2026
India's manufacturing and industrial startups have at least 10 active funding programs in August 2026, including the ₹6,485 crore PLI for auto components, MSME design grants, and hardware vouchers from AIC RAISE. The list covers subsidies, competitions, and incubation support.
Ten active grants, subsidies, and competitions currently support manufacturing and industrial startups in India. They include sectoral subsidies from state and central governments, design and innovation grants, and open innovation challenges run by corporates and industry bodies.
Funding for this segment comes from multiple channels. The Ministry of MSME operates schemes for design and coir processing; the Ministry of Heavy Industries runs a production-linked incentive for auto components; state governments in West Bengal and Tamil Nadu subsidise power and prototyping; and corporate accelerators from Maruti Suzuki, Bosch, and NASSCOM offer prize-based grants.
Active Manufacturing & Industrial Grants and Programs
| Program | Type | Deadline | Funding |
|---|---|---|---|
| West Bengal Textile Incentive Scheme: Power Subsidy | Grant | Rolling | Up to ₹10 crore |
| Coir Board Schemes — Coir Vikas Yojana | Grant | Rolling | Up to ₹10 lakh |
| EDII-TN Innovation Voucher Program — AIC RAISE Hardware Cohort | Grant | Rolling | Up to ₹7 lakh |
| MSME Innovative Scheme: Design Component | Grant | Rolling | Up to ₹40 lakh |
| Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry | Grant | Rolling | Up to ₹6,485 crore |
| Maruti Suzuki NURTURE Cohort 4 at IIM Calcutta Innovation Park | Competition | Rolling | Up to ₹13 lakh |
| Swanari TechSprint 4.0: AI for Inclusive Finance | Competition | 15 Aug 2026 | Varies |
| BOSCH - BMU Innovation Challenge | Competition | Rolling | Varies |
| CoE Innovation Challenge: AI-Powered Foreign Object Detection in Bulk Cargo Unloaders | Competition | Rolling | Varies |
| UAE-India Start-up Series 2.0 | Competition | 30 Aug 2026 | Up to ₹56.75 lakh |
West Bengal Textile Incentive Scheme: Power Subsidy (Govt. of West Bengal)
The West Bengal Textile Incentive Scheme: Power Subsidy is part of the WBTIS, launched on December 13, 2022, and valid for five years. It provides a power subsidy for textile enterprises across the value chain, from fibre to stitched garments, with the incentive running for five years from approval.
Eligible units must be established within West Bengal. The subsidy covers electricity consumption and is available on a rolling basis under the scheme window. Startups setting up textile manufacturing in the state can use this incentive to reduce operating costs.
Coir Vikas Yojana (Ministry of MSME)
The Coir Board Schemes — Coir Vikas Yojana is an umbrella programme 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; 55% of the remaining cost is available as a bank loan.
- Mahila Coir Yojana: free foot-operated spinning wheels for women artisans.
- Skill development and market promotion: trade fairs and Coir Mark certification support.
For manufacturing startups, the Coir Udyami Yojana is the entry point. The scheme is rolling and targets new coir processing capacity.
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 EDII-TN, with AIC RAISE as the knowledge partner. It offers two grant tracks: Voucher A provides ₹3 lakh for building and validating a prototype; Voucher B provides ₹7 lakh for scaling a working hardware product. Both are non-dilutive, and AIC RAISE does not take equity.
The hardware focus makes it relevant for manufacturing technology startups. The program includes mentoring, pitch deck development, strategic pitching support, and market pilot connects. Applications are accepted on a rolling basis.
MSME Innovative Scheme: Design Component (Ministry of MSME)
The MSME Innovative Scheme: Design Component supports MSMEs in integrating professional design into product development. It covers new product development and enhancement of existing products, with a maximum grant of ₹40 lakh.
Manufacturing MSMEs can apply for design services that improve quality, functionality, and appeal, supporting the Make in India and Atmanirbhar Bharat goals. The scheme is open-ended, with rolling applications.
PLI Scheme for Automobile and Auto Components (Ministry of Heavy Industries)
The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry from the Ministry of Heavy Industries offers incentives for producing advanced automotive technology products. The total outlay is up to ₹6,485 crore.
The scheme targets automobile and auto component manufacturers and aims to create economies of scale. Applications are rolling, and the incentive is linked to production volumes.
Maruti Suzuki NURTURE Cohort 4 (IIM Calcutta Innovation Park)
The Maruti Suzuki NURTURE Cohort 4 at IIM Calcutta Innovation Park is a pre-incubation competition run by Maruti Suzuki and IIM Calcutta Innovation Park. It offers cash rewards worth ₹13 lakh and a paid proof-of-concept opportunity.
Focus domains include mobility convenience, ADAS, EV and EV infrastructure, sustainability, social impact, and enterprise and manufacturing technologies such as process automation, computer vision, and industrial IoT. The program prioritises startups from eastern, north-eastern and central India, but is open to ventures offering services anywhere in India. Selection is cohort-based with rolling applications.
Swanari TechSprint 4.0 (IIMA Ventures)
The Swanari TechSprint 4.0: AI for Inclusive Finance is an innovation challenge co-created by RBIH and IIMA Ventures. It focuses on AI-enabled solutions that improve credit access, savings, and digital bookkeeping for women self-help groups and women entrepreneurs.
Applications close on 15 August 2026. The competition is open to startups building secure and scalable AI fintech solutions for financial inclusion.
BOSCH - BMU Innovation Challenge (ACIC-BMU)
The BOSCH - BMU Innovation Challenge is run by ACIC-BMU Foundation in partnership with Bosch India. It targets solutions for sustainable mobility, including connectivity, synthetic fuels, electrification, innovative brake systems, and inclusive mobility for persons with disabilities, senior citizens, and women.
The challenge is rolling and open to innovators and researchers. Selected projects receive mentorship and access to Bosch's technical and industry network.
CoE Innovation Challenge: AI-Powered Foreign Object Detection (NASSCOM CoE-IoT&AI)
The CoE Innovation Challenge: AI-Powered Foreign Object Detection in Bulk Cargo Unloaders is run by NASSCOM CoE-IoT&AI with a major port terminal operator. The problem: detecting foreign objects in 18-19 metre deep vessel holds during coal unloading to prevent equipment damage and cost overruns.
Participating startups develop AI and computer vision solutions that operate in these conditions. The challenge is rolling and open to deep-tech startups with industrial applications.
UAE-India Start-up Series 2.0 (UAE-India CEPA Council)
The UAE-India Start-up Series 2.0 is an initiative of the UAE-India CEPA Council. It provides up to ₹56.75 lakh in funding, plus market access and investment pathways, for Indian startups expanding to the UAE.
Applications close on 30 August 2026. The series is open to startups across sectors, including industrial technology and manufacturing services.
Before Applying
Eligibility rules differ sharply. The West Bengal Textile Incentive Scheme is limited to textile units established in West Bengal; Coir Vikas Yojana schemes are for coir processing units. EDII-TN's Innovation Voucher Program is a Tamil Nadu state scheme for hardware ventures. MSME Design requires MSME status, and the PLI Auto scheme is for manufacturers of advanced automotive technology. Maruti Suzuki NURTURE gives preference to startups from eastern, north-eastern and central India.
Deadlines and intake terms also vary. Swanari TechSprint 4.0 closes on 15 August 2026; UAE-India Start-up Series 2.0 closes on 30 August 2026. The other programs accept rolling applications, though several are cohort-based, including Maruti Suzuki NURTURE and the AIC RAISE hardware cohort. The NASSCOM CoE challenge is tied to a single port-terminal problem, while the BOSCH-BMU challenge targets specific technical domains like braking and electrification.
