IndiaFilings

Expert

Published on: Jul 30, 2026

Multiplier Grants Scheme

The Indian Government has introduced over 50

startup schemes to help boost the start-up mission in India. Multiplier Grant Scheme was brought into effect to promote industries by collaborating with state of the art Academic and Government R & D  institutes, who are engaged in the activity of developing products/packages. In this article, we will discuss the various aspects of Multiplier Grants Scheme (MGS).

Objectives

The objectives of the proposed scheme are:

  • Establish, nurture and strengthen the linkages connecting the Industry and the R&D institutes.
  • To encourage industry-oriented R&D at institutes.
  • Promote and expedite development of aboriginal products and packages.
  • Bridge the gap between R&D / Proof-of-concept and commercialization/globalization.

Process of Initiation

The idea for collaborative research

must be submitted jointly by the Industry and R&D institutes as a project proposal to the Department of Electronics & Information Technology (DEIT) under MGS scheme. The proposal is generated for innovation in modules or services in the field of E&IT. The proposals should be able to predict the framework for commercialization. To find out the R&D capabilities of institutions taking up collaborative research under MGS, it is vital to look into the following:
  • Level of professional courses in ICTE(B.Tech/M.Tech/PhD) being conducted by them.
  • Prior Research Work/projects undertaken.
  • No. of papers published.
  • Collaboration with industry, if any.
  • The institution should be in existence for a minimum period of 5 years.

The result of the proposed idea must be feasible and practical. All the proposals should contain data on the market survey of the modules or services anticipated to be established. The industry should have the manpower for absorption of technology and infrastructure for production in-house. The proposal must have detailed concrete plans to be implemented.

Release of Grants

The Government grants, for the individual industry, would be limited to a maximum of Rs. 2.0 Crores per project and the duration of each project could considerably be less than 2 years. It would be Rs. 4.0 Crores and 3 years for industry consortium. The contribution of industry and grant-in-aid from

DeitY would be provided to academic/R&D institution(s) alone. The formal agreement for sharing of IPRs/know-how and royalty/lump sum between the institute(s) and industry must be signed prior to the release of the first installment of Grant-in-aid. The institution(s) /industry would submit the periodic report to DeitY for a minimum period of 5 years on the status of IPRs created.

Proposal Implementation

Proposals will be invited based on the disposal of funds, for maximum of three times in a year. A Working Group fixed by the Department shall inspect and verify the respective proposals and suggest the Department for suitable financial support. The WG might invite extra Domain Experts, considering the proposals made.  A Project Review & Steering Group (PRSG) shall periodically manoeuvre and analyse the technical and financial progress of the project, favouring release of Grants The grants under the proposed scheme and the application to submit the proposal would be based on the Terms & Conditions placed.  The details of the scheme, including current status, would be made available on the Department website.
Back to Learn

Frequently Asked Questions

Common questions about Multiplier Grant Scheme for Indian Startup Innovation.

The Multiplier Grants Scheme (MGS) is an initiative by the Indian Government to promote collaboration between industries and academic/government R&D institutes. It aims to establish and strengthen the linkages between these entities, encouraging industry-oriented research and development of indigenous products and services.
The MGS requires joint proposals to be submitted by an industry partner and an R&D institute. The proposal should outline a collaborative research project in the field of electronics and information technology (E&IT) with a clear plan for commercialization.
The R&D institutes participating in the MGS should have a proven track record in relevant research work, publications, and industry collaborations. They should also offer professional courses (B.Tech/M.Tech/PhD) in the field of E&IT and have been in existence for at least 5 years.
For individual industry projects, the maximum grant available is Rs. 2.0 crores (approximately $270,000 USD), with a project duration of up to 2 years. For industry consortium projects, the maximum grant is Rs. 4.0 crores (approximately $540,000 USD), with a project duration of up to 3 years.
The grant-in-aid from the Department of Electronics & Information Technology (DeitY) is provided directly to the academic/R&D institution(s) involved in the project. The industry partner and the institute(s) must sign an agreement for sharing intellectual property rights (IPRs) and royalties before the first installment is released.
Proposals are invited a maximum of three times per year, depending on the availability of funds. A Working Group appointed by the DeitY evaluates and recommends proposals for financial support, with the option to invite domain experts for assistance.
The PRSG is responsible for periodically monitoring and reviewing the technical and financial progress of the projects under the MGS. Their recommendations are a key factor in the release of grant installments.
Yes, the institution(s) and industry involved in an MGS project are required to submit periodic reports to the DeitY for a minimum of 5 years, providing updates on the status of any IPRs created during the project.
The details of the MGS, including the current status, application process, and terms and conditions, are made available on the official website of the Department of Electronics & Information Technology (DeitY).
The Multiplier Grants Scheme aims to bridge the gap between research and commercialization, promoting the development of indigenous products and services. By fostering industry-academia collaborations, it supports the overall growth and success of the Indian startup ecosystem, particularly in the electronics and information technology sectors.