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MSME Innovative Scheme, Incubation component

Ministry of Micro, Small and Medium Enterprises

Funds individuals and small firms to turn an idea into a working prototype, through approved Host Institutes acting as incubators. Ideas enter through the ministry's MSME Idea Hackathon rounds and pass an expert review. The ministry pays most of the approved cost, and students do not have to contribute at all.

What you can get

Up to ₹15 lakh per idea, covering 85% of approved cost. The money goes through the Host Institute.

Do you repay it?

No

Type

Grant

Where

All of India

Go to the official page

Current status

The portal says the window for ideas under Hackathon 6.0 has closed and received ideas are under evaluation. Earlier rounds are still processing instalments. No Hackathon 7.0 date is shown.

Who can apply

  • Any individual or MSME with an innovative idea
  • No qualification requirement
  • Individuals need Aadhaar and MSMEs need Udyam Registration
  • Non-student applicants contribute 15% of approved cost

How to apply

  1. 1Check the Host Institute list on the incubation portal
  2. 2Submit your idea to a Host Institute during a hackathon window
  3. 3The institute shortlists and uploads ideas for ministry evaluation

The catch

The funds are paid to the Host Institute, not to you, and released in stages after ministry approval. Rounds take time, with older hackathons still paying instalments in 2026. Choose an institute with care.

We read this on the official page on 4 November 2026. Rules and dates change, so confirm there before you apply. Founders Wing is not connected to this scheme, does not help with applications and never charges for access to it.

A grant can help. Paying customers keep you going.

Founders Wing is India’s community for people building with AI: weekly live sessions, a private group, and people who help you reach paying customers.

See Founders Wing