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Tata Capital > Blog > What is the TIDE 2.0 Scheme? Objectives, benefits and eligibility

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What is the TIDE 2.0 Scheme? Objectives, benefits and eligibility

What is the TIDE 2.0 Scheme? Objectives, benefits and eligibility

Many great startups fail to move forward. Not because they lack potential, but because they do not get enough financial support and mentorship. Adequate funding, infrastructure, and the right ecosystem are essential for early-stage startups and innovators to realize their true worth.

This is where government-backed innovation programs step in. One such initiative is the TIDE 2.0 Scheme. It refers to a focused effort to support technology-driven startups and nurture entrepreneurs at the grassroots level. Keep reading to learn about the various aspects of the TIDE 2.0 Scheme, including its primary objectives, benefits, features, and eligibility criteria.

Overview of the Technology Incubation and Development of Entrepreneurs Scheme

TIDE 2.0 stands for the Technology Incubation and Development of Entrepreneurs Scheme. It is a government initiative launched to promote innovation, entrepreneurship, and technology development in India. The scheme is being managed by the Ministry of Electronics and Information Technology (MeitY).

Under the scheme, startups working in areas of emerging technologies in the field of Information and Communication Technology (ICT) are provided with financial assistance, incubation support, and access to a structured innovation ecosystem. The initiative further aims to assist young entrepreneurs in bringing their technologies to market through their ventures.

The MeitY TIDE 2.0 Scheme is implemented through selected academic institutions and incubation centers across the country, known as TIDE 2.0 Incubation Centers.

Purpose of the TIDE 2.0 program

The primary purpose of MeitY TIDE 2.0 is to strengthen India’s innovation ecosystem by encouraging startups in the technology sector. Other key objectives of the scheme include:

  • Promoting entrepreneurship among students and young innovators
  • Enabling budding entrepreneurs to start their ventures and make profits
  • Providing financial assistance to early-stage technology startups
  • Offering personalized support to ICT-based startups in the national interest
  • Encouraging product-oriented innovation rather than service-only models
  • Creating a pipeline of scalable, technology-led enterprises
  • Bridging the gap between academic research and commercial application

Major benefits offered under TIDE 2.0

The scheme does not just provide funding. It also gives real, on-ground support to help startups move forward when they are still at a very early stage.

●      Financial support to build and test ideas

Many startups struggle in the beginning because they simply don’t have enough funds to test their ideas. Under this scheme, nearly 2,000 startups get financial support to build prototypes or working models.

●      Access to workspaces and facilities

Another big advantage is access to incubation centers. These centers usually have office space, basic lab facilities, and other tools. For a new startup, arranging all this independently can be expensive.

●      Guidance from experienced people

Starting a business can be confusing, especially for first-time founders. Through TIDE 2.0, entrepreneurs can talk to mentors who have experience in technology and business. Their advice often helps founders avoid mistakes and make better decisions early on.

Who can apply for the TIDE 2.0 Scheme?

The following entities are eligible to apply for the TIDE 2.0 MeitY Scheme:

  • Individuals, startups, or students with innovative business ideas at TRL 3 (Technology Readiness Level).
  • Startups in the ideation, validation, or early traction stages.
  • Technology-based businesses utilizing cutting-edge solutions such as IoT, AI, ML, blockchain, robotics, etc., in selected thematic fields. These fields include healthcare, agriculture, Fintech, environment, and clean energy solutions, among others.
  • Incubation centers such as academic institutions and research organizations can participate to support startups.

Applicable service categories under TIDE 2.0

Eligible entities under the MeitY TIDE 2.0 Scheme are offered various services to help them transition from the idea stage to the growth stage. Each service category focuses on solving a specific need of early-stage entrepreneurs.

  • Prototype development assistance: Supports startups in building their first working model. Funds and technical help may be provided to develop and refine prototypes.
  • Incubation and mentorship: Startups get access to mentors, industry experts, and incubation facilities. This helps them improve their product, business model, and strategy.
  • Financial grant support: Eligible startups receive grant funding under MeitY TIDE 2.0 to cover product development and early operational costs.
  • Business development and networking: Incubators help startups connect with customers, partners, and investors. This improves their chances of commercial success.
  • Training and capacity building: Workshops and training programs are organized to improve entrepreneurial and technical skills.


Also Read – How to Raise Funds For Startup Business

Detailed eligibility conditions for applicants

Individuals, startups, or students applying for the TIDE 2.0 Scheme must meet certain basic eligibility guidelines to avail of the benefits. These guidelines outline certain eligibility rules, including entity type, registration status, age, etc. Furthermore, different incubation centers may have additional evaluation criteria for applicants based on specific focus areas.

Eligibility rules for startups applying under the TIDE 2.0 Scheme

  • The startup should be registered in India.
  • The startup must have the DIPP recognition with Startup India.
  • The startup must fall under one of the focus areas.
  • The startup should be less than seven years old.
  • The founders must hold at least a 51% stake in the company.
  • The startup should not have acquired the services of a professional team or mentor.

Eligibility rules for students

  • Students or student-led startups can also apply for the scheme.
  • The student must be in the final semester.
  • The student-led startup must be in the prototype or pre-commercial stage.
  • The startup must not have raised funds previously.
  • Startups must not be incubated at any incubation center.
  • The student/startup must be associated with KLTIF.

Role of MeitY Startup Hub in TIDE 2.0

The MeitY Startup Hub (MSH) plays a central role in managing the TIDE 2.0 Scheme. The Union Ministry of Electronics and Information Technology established this hub to coordinate with incubation centers across India and monitor proper implementation of the scheme.

The primary roles of the MeitY Startup Hub in TIDE 2.0 include:

  • Acts as a link between investors, startups, mentors, and incubation centers.
  • Monitors the timely release of financial assistance.
  • Ensures proper usage of funds.
  • Tracks the efficiency of both startups and incubators.
  • Oversees the delivery of intended benefits to entrepreneurs and incubators.
  • Ensures the overall program runs smoothly.


Also Read –  Startup India Seed Fund Scheme

TIDE incubation centers across India

TIDE incubation centers play a central role in the implementation of the TIDE 2.0 MeitY Scheme. They act as intermediaries between the government, investors, and startups/entrepreneurs with innovative ideas.  They also provide workspace, mentoring, and technical support to eligible startups.

Incubation centers also help startups with product development and business planning. They are the main channel for providing funding and guidance to help startups grow from early-stage ideas to successful businesses.

List of recognized TIDE 2.0 incubation centers

TIDE incubation centers are usually located in academic institutions, research organizations, and technology parks with incubation facilities. These centers have established links with major corporate houses, trade associations, and industrial clusters. They are chosen by the Ministry of Electronics and Information Technology based on their infrastructure, experience, and ability to support startups.

As of February 2026, there are 51 TIDE incubation centers across India. The complete list is available on the official MeitY TIDE 2.0 website.


Also Read –  Vishwakarma Loan Scheme

Categories of TIDE 2.0 incubation centers

TIDE incubation centers are primarily divided into three categories:

  • Group 1 centers

These centers provide strong mentorship, training, and industry connections to startups. They also guide and support smaller incubation centers. Most of them are located in top educational institutes such as IIT Hyderabad and IIM Ahmedabad.

  • Group 2 centers

These centers focus on helping students and early-stage founders build startups. They also work closely with Group 3 centers. Many of these are based in Indian universities and private academic organizations, such as KIIT and VIT.

  • Group 3 centers

These centers help develop the startup culture in regions where such support is limited. They are usually new incubators set up in academic institutions.

Application process for TIDE 2.0 Scheme

The eligible startup can apply for the scheme through a recognized TIDE 2.0 incubation center. Each incubator offers a limited number of seats. The application process typically involves the following steps:

  1. The applicant selects a recognized TIDE incubation center.
  2. Applicants submit their proposal, business plan, and required documents.
  3. The incubator reviews the application and conducts an evaluation.
  4. Selected applicants are invited for presentations or interviews.
  5. Once approved, the startup receives incubation support and funding.

Eligibility conditions for Entrepreneur in Residence (EiR)

  • The entrepreneur must be a citizen of India.
  • Students in the final year or with an undergraduate degree can apply.
  • The entrepreneur must not have availed of any other financial help.
  • They must show commitment to building a startup.
  • Shareholders or promoters in other companies cannot apply.

Eligibility criteria for TIDE 2.0 grants

  • A recognized incubator must select the applicant.
  • The applicant must be an Indian citizen.
  • The applicant must file a limited corporation.
  • The applicant can be a final-year student or an undergraduate degree holder.
  • The applicant must be able to convert a Proof of Concept (PoC) into a Minimum Viable Product (MVP).


Also Read –  Top Government Schemes for Startups

Nature of financial support provided

Eligible EiRs under the TIDE 2.0 Scheme can receive funding of up to Rs. 4 lakhs to work on concept development and validation. Applicants with PoCs can receive grants of up to Rs. 7 lakhs to convert their ideas into MVPs.

Funding is given in stages based on progress. The exact amount varies depending on the startup’s needs and development stage.

Key takeaways on the TIDE 2.0 Scheme

The MeitY TIDE 2.0 Scheme is a crucial government initiative for technology startups in India. It offers financial assistance, incubation services, mentorship, and business support at early stages. Workshops and training programs are also organized to improve the entrepreneurial and technical skills of applicants.

The application procedure involves selecting a recognized incubation center, submitting an official proposal, and getting selected for presentations and interviews.

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FAQs

What is the TIDE 2.0 Scheme, and who runs it?

The TIDE 2.0 scheme is a government program that supports technology startups through funding, incubation, and mentorship. It helps innovators turn ideas into businesses. The scheme is run by the Ministry of Electronics and Information Technology (MeitY).

Who is eligible to apply under TIDE 2.0?

Individuals, startups, or students with innovative business ideas at TRL 3 can apply for the scheme. The startup must be in the ideation, validation, or early traction stages. Incubation centers such as academic institutions and research organizations can participate to support startups.

What is the scale-up grant under TIDE 2.0?

The scale-up grant under the TIDE 2.0 Scheme is given to 2,000 tech startups that have already built a prototype and are ready to grow. It provides higher funding for up to five years to help with product improvement, market launch, and expansion.

Is there any application fee for TIDE 2.0?

There is no application fee for TIDE 2.0. Most incubators provide financial assistance and other associated support free of cost to selected beneficiaries. However, some might levy a nominal charge for their services.  

What types of support does TIDE 2.0 offer?

The TIDE 2.0 Scheme offers both financial and non-financial support to startups. This includes grant funding, incubation space, mentorship, technical guidance, and business development help. Startups also get access to investor networks, industry connections, and training.

How is financial assistance provided under TIDE 2.0?

The financial assistance is provided in the form of grants, equity, and debt investments to startups. The support is released in stages based on progress and milestones.
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