New Government Schemes for Manufacturing Startups in 2025
In 2025, the Indian government reaffirmed its commitment to developing the manufacturing sector by proposing many new incentives designed exclusively for startups. Through the "Make in India" philosophy, these projects seek to promote self-reliance, increase employment, and encourage innovation. Manufacturing startups, particularly micro, small, and medium-sized firms (MSMEs), can profit greatly from these schemes if they have the necessary documents, such as a feasibility report, TEV report, bankable project report, pitch deck for a startup, and so on.
Key Government Schemes for Manufacturing Startups in 2025
Production Linked Incentive (PLI) 2.0 Scheme
The revised PLI Scheme in 2025 now includes broader categories such as green technologies, EV components, and advanced electronics. It provides 4%–6% incentives on incremental sales for five years. Manufacturing startups with a solid DPR for a bank loan and a Feasibility Report can apply to avail themselves of this benefit.
Startup India Seed Fund Scheme (SISFS)
Extended in Budget 2025-26 with an increased corpus, this scheme helps early-stage startups with financial support of up to ₹50 lakh. To qualify, the startup must be recognized under Startup India Registration and have a compelling Pitch Deck for the Startup and a Project Report for Business.
Credit Guarantee Scheme for Startups (CGSS)
Launched by SIDBI, this scheme offers collateral-free loans up to ₹10 crore. Banks and NBFCs prefer a professionally crafted Bankable Project Report and DPR for a bank loan to assess applications under this scheme.
NLM Support for Manufacturing in Agri-Based Sectors
The National Livestock Mission (NLM) has expanded support to rural manufacturing startups producing fodder, poultry, and animal feed. Here, an NLM Project Report and Feasibility Report are crucial for availing subsidies and credit.
Pradhan Mantri Mudra Yojana (PMMY)
A classic yet still relevant scheme, PMMY offers loans up to ₹10 lakh under Shishu, Kishor, and Tarun categories. Startups applying for these loans must submit a specific Project Report for Mudra Loan, along with a TEV Report to assess the technical and economic viability of the business.
Crucial Documentation Required for Startups
Securing funding or support from any government scheme requires startups to be thoroughly prepared with essential documents. Below are the key project reports and why they are critical:
1. Feasibility Report
A feasibility report assesses the viability of the planned manufacturing venture. It addresses market demand, operational issues, infrastructural availability, and legal needs. This report is sometimes requested in conjunction with a Project Report for Land Allotment when startups apply for land allotment.
2. Techno-Economic Viability (TEV) Report
TEV Reports evaluate both technical soundness and financial feasibility. It covers CAPEX and OPEX estimates, product lifecycle projections, and break-even analysis. Banks and investors rely on this document to make loan and equity investment decisions.
3. Bankable Project Report
Bankable Project Reports are designed exclusively for financial institutions. It focuses on income estimates, repayment capability, business risks, and mitigation techniques. Repeating this report structure across many programmes, such as Mudra Loan, CGSS, and land allotment, saves time and improves consistency.
4. NLM Project Report
The NLM Project Report is vital for startups in the livestock or rural agri-manufacturing sectors. It provides information on feed production capacity, supply chain, local demand, and predicted job creation.
5. DPR for Bank Loan
The Detailed Project Report (DPR) for Bank Loan is a more exhaustive version of the Bankable Project Report. It includes architectural layouts, machinery specifications, regulatory approvals, environmental clearances, and more. This is often mandatory for loans above ₹1 crore.
6. Startup India Registration
To access most startup-specific schemes, it is mandatory to complete the Startup India Registration on startupindia.gov.in. Once registered, startups can apply for tax exemptions under sections 80-IAC and 56(2)(viib) of the Income Tax Act, 1961.
7. Pitch Deck for Startup
The Pitch Deck for a Startup serves as a visual summary for angel investors and venture capitalists. It typically includes the problem statement, solution, USP, target market, business model, financials, and ask. While not legally required, it greatly enhances the success of fundraising.
Land Allotment and State Industrial Policies
Several states, including Gujarat, Uttar Pradesh, and Tamil Nadu, have announced new industrial plans for 2025, including subsidised land, capital subsidies, and power tax exemptions. Startups must submit a Project Report for Land Allotment to industrial development firms, which includes a site appraisal, environmental impact, and layout plan.
Conclusion
2025 is a promising year for manufacturing startups in India. Budding entrepreneurs today have unprecedented access to capital, infrastructure, and policy support thanks to a variety of federal and state-level initiatives. However, the key to realising these benefits is to prepare a solid Feasibility Report, TEV Report, Bankable Project Report, NLM Project Report, DPR for bank loan, and other critical documents such as the Startup Pitch Deck and Project Report for Mudra Loan.
To get started, complete your Startup India registration and meet with professionals to create a comprehensive Project Report for your business. With proper planning and documentation, your manufacturing firm can reach new heights by 2025 and beyond. For additional information or assistance, please contact us at +91-8989977769.