Government Schemes for Small Business by Category: Manufacturing, Services, Trading, Women, SC/ST (2026)

Quick take

India has 50+ government schemes for small businesses, but finding the right one for YOUR business type is confusing. This guide organises every major scheme by business category — manufacturing, services, trading, women-owned, and SC/ST enterprises — so you can find exactly what applies to you.

Most entrepreneurs waste weeks researching schemes that don’t apply to their business type. A restaurant owner doesn’t need export subsidies. A manufacturer doesn’t need the Stand-Up India scheme (unless they’re SC/ST or women). This guide cuts through the noise and maps every major central government scheme to the business categories that actually qualify.

🏭 Manufacturing & Production Businesses

Factories, food processing, textiles, handicrafts, assembly units

PMEGP (Prime Minister Employment Generation Programme)

Subsidy of 15–35% on projects up to ₹50 lakh (manufacturing) or ₹25 lakh (services). Higher subsidy for women, SC/ST, NE region applicants. Apply through KVIC/DIC offices.

✓ Best for: New manufacturing units with ₹10–50L project cost

CLCSS (Credit Linked Capital Subsidy Scheme)

15% capital subsidy on technology upgradation for MSMEs in manufacturing. Maximum subsidy ₹15 lakh on plant/machinery investment up to ₹1 crore.

✓ Best for: Existing manufacturers upgrading machinery

PM Vishwakarma Yojana

For traditional artisans and craftspeople — carpenters, blacksmiths, goldsmiths, potters, etc. Provides skill training, toolkit grant (₹15,000), and collateral-free loans up to ₹3 lakh at 5% interest.

✓ Best for: Traditional artisans in 18 identified trades

SFURTI (Scheme of Fund for Regeneration of Traditional Industries)

Cluster-based support for traditional industries like khadi, coir, bamboo. Funding up to ₹8 crore per cluster for infrastructure, training, and marketing.

✓ Best for: Clusters of 500+ artisans in traditional industries

💼 Service Businesses

IT, consulting, salons, coaching, healthcare, logistics, hospitality

Mudra Loan (Shishu / Kishor / Tarun)

Collateral-free loans from ₹50K to ₹10 lakh through any bank. Three tiers: Shishu (up to ₹50K), Kishor (₹50K–5L), Tarun (₹5L–10L). No processing fee for Shishu. Complete Mudra loan guide →

✓ Best for: Any small business needing quick working capital

CGTMSE (Credit Guarantee Fund Trust)

Government guarantees loans up to ₹5 crore without collateral. Works with all banks and NBFCs. Service businesses are fully eligible. Collateral-free loan guide →

✓ Best for: Growing service businesses needing ₹10L–5Cr

Startup India (DPIIT Recognition)

Tax exemption for 3 consecutive years, self-certification under labour/environment laws, access to ₹10,000 Cr fund of funds, and fast-track patent filing. DPIIT registration guide →

✓ Best for: Innovative/tech startups under 10 years old

🛒 Trading & Retail Businesses

Shops, wholesale, e-commerce, import/export, distribution

PM SVANidhi (Street Vendors)

Working capital loan up to ₹50,000 for street vendors. No collateral needed. 7% interest subsidy on timely repayment. Digital payments incentive of ₹1,200/year.

✓ Best for: Street vendors and hawkers with vending certificate

TIES (Trade Infrastructure for Export Scheme)

Funding for export infrastructure — testing labs, warehousing, cold chains. Grant-in-aid up to ₹20 crore per project. Get IEC registration first →

✓ Best for: Export-oriented traders needing infrastructure

GeM (Government e-Marketplace) Registration

Register on GeM to sell products/services directly to government departments. Over ₹4 lakh crore in orders processed. MSMEs get priority and 25% procurement preference.

✓ Best for: Any trader wanting government contracts

👩‍💼 Women Entrepreneurs

Stand-Up India

Loans from ₹10 lakh to ₹1 crore for women entrepreneurs (and SC/ST) for greenfield enterprises in manufacturing, services, or trading. At least one such loan per bank branch.

✓ Best for: Women starting new businesses needing ₹10L+ capital

Mudra Loan — Women Priority

68% of all Mudra loans go to women borrowers. Women get priority processing and many banks offer reduced interest rates. No collateral for amounts up to ₹10 lakh.

✓ Best for: Women-owned micro businesses needing quick capital

Mahila Udyam Nidhi (SIDBI)

Soft loans up to ₹10 lakh for women setting up new small-scale industries. Repayment period up to 10 years with moratorium of up to 5 years.

✓ Best for: Women in manufacturing/small-scale industry

SC/ST & Minority Entrepreneurs

NSFDC & NSKFDC Loans

National SC/ST Finance Development Corporations provide concessional loans at 4–6% interest for business activities. Loan amounts from ₹50K to ₹30 lakh depending on the scheme.

✓ Best for: SC/ST entrepreneurs starting or expanding businesses

Venture Capital Fund for SC/ST

Equity/quasi-equity funding from ₹50 lakh to ₹15 crore for SC/ST entrepreneurs. Managed by IFCI. Longer payback periods and patient capital.

✓ Best for: SC/ST entrepreneurs with scalable business models

Schemes available to ALL business types

MSME Registration

Free Udyam registration. Unlocks all MSME benefits: priority lending, lower interest rates, government tender preference. Get registered →

ZED Certification

Zero Defect Zero Effect certification. Subsidy up to 80% on certification cost. Enhances market credibility and opens export opportunities.

MSME Samadhan

Delayed payment monitoring system. File complaints against buyers who delay payments beyond 45 days. Government-backed dispute resolution.

Don’t know which scheme applies to you?

OpenBiz matches your business to the right government schemes

Tell us your business type, location, and turnover — our AI engine identifies every scheme you qualify for and helps you apply. No more guesswork.

Check your eligibility →

FAQ

Can one business apply to multiple schemes?

Yes! Most schemes are independent. A women-owned manufacturing MSME can apply for Stand-Up India, PMEGP, CGTMSE, and Mudra — all at the same time.

Do I need MSME registration first?

For most schemes, yes. Udyam registration is free and takes 10 minutes. It’s the gateway to all MSME benefits.

Related guides

🌐 Search in your language

Hindi: सरकारी योजनाएं छोटे व्यापार के लिए, महिला उद्यमी योजना, एमएसएमई लोन स्कीम, SC/ST व्यापार लोन
Tamil: சிறு வியாபாரத்திற்கான அரசு திட்டங்கள், பெண் தொழில்முனைவோர் திட்டம்
Telugu: చిన్న వ్యాపారాల కోసం ప్రభుత్వ పథకాలు, మహిళా వ్యాపారవేత్తల రుణాలు
Marathi: लघु उद्योगांसाठी सरकारी योजना, महिला उद्योजक कर्ज योजना
Kannada: ಚಿಕ್ಕ ವ್ಯಾಪಾರಗಳಿಗೆ ಸರ್ಕಾರಿ ಯೋಜನೆಗಳು, ಮಹಿಳಾ ಉದ್ಯಮಿಗಳಿಗೆ ಸಾಲಗಳು
Bengali: ক্ষুদ্র ব্যবসার জন্য সরকারি প্রকল্প, মহিলা উদ্যোক্তাদের জন্য লোন