The Multiplier Grants Scheme (MGS) is a government initiative designed to boost innovation and R&D in the electronics and IT sectors. If you’re a new MSME owner, this scheme can help you collaborate with academic or R&D institutions to develop new products, with the government matching your investment, sometimes even doubling it.
Innovation and research are key to staying ahead in business, but finding the right funding and expertise can be tough. The Multiplier Grants Scheme (MGS) is here to help you out. It encourages partnerships between businesses and universities, so you can tap into expert knowledge. Plus, it offers financial support to help you develop new products and technologies that are ready for the market. This is your chance to bring your ideas to life with less financial risk and more technical support.
What is the Multiplier Grants Scheme (MGS)?
The Multiplier Grants Scheme (MGS) was launched by the Department of Electronics and Information Technology (DeitY), Government of India. The scheme aims to foster collaborative R&D between industry and academic or R&D institutions, especially for developing products and solutions in electronics and IT. Under MGS, if you, as an MSME or industry partner, invest in R&D at an institution, the government will provide financial support up to twice your contribution, making innovation more accessible and less risky.
Objectives of the Multiplier Grants Scheme
Strengthen links between industry and academic/R&D institutions.
Promote industry-oriented R&D at academic institutions.
Encourage the development and commercialization of indigenous products.
Bridge the gap between proof-of-concept and market-ready products.
Boost the competitiveness of Indian electronics and IT sectors.
Reduce the gap between globalisation, R&D and commercialisation within the industry.
Key Features of the Multiplier Grants Scheme
You are encouraged to undertake collaborative R&D projects by partnering with academic or R&D institutions.
The government supports your innovation by providing funding up to twice the amount you contribute.
You can receive financial assistance of up to ₹2 crore for individual industry projects with a duration of less than 2 years.
If you are part of an industry consortium, your project can get up to ₹4 crore in funding for a duration of up to 3 years.
You can focus your project on the electronics and IT sectors, including activities like product development, prototyping, and commercialization.
You are allowed to use the grant for expenses such as human resources, equipment, consumables, travel, and overheads, with overheads capped at 15% of the total project cost.
You are expected to complete your project within the specified maturity period, less than 2 years for individual projects and up to 3 years for consortium projects.
Financial Assistance Offered Under the Multiplier Grants Scheme
Project Type
Govt. Grant (Max)
Max Duration
Individual Industry
₹2 crore
2 years
Industry Consortium
₹4 crore
3 years
Eligible Expenses:
Human resources, equipment, consumables, travel, training, contingencies, and overheads (up to 15% of project cost).
Eligibility Criteria for MSME Multiplier Grants Scheme
Eligibility
You are eligible if:
You must be an MSME, startup, incubator, academia, or accelerator with projects in electronics and IT.
Your project should be submitted jointly with an academic or government R&D institution.
The proposal must focus on developing a technically and commercially viable product or solution in electronics and IT.
Your academic partner must have at least 5 years of existence and relevant research experience in the field.
Your business should have the skilled team and infrastructure to absorb the technology and carry out production.
Non-eligibility
You are not eligible if:
You do not have an academic or R&D institution as a partner.
Your project is not related to electronics or IT.
Your project does not aim for commercialization.
You are seeking funds for routine business expenses, not R&D.
Step 2: From the list of schemes, choose Multiplier Grants Scheme. Locate and click on the link for “Application form for submission of joint R&D project proposal.” The form will open in PDF format. Download and print this form.
Step 3: Fill out the form with all your necessary and accurate project details.
Step 4: On the same scheme webpage, you’ll find the “Invitation of Project Proposals” link. Review the list of areas currently being invited for proposals. Make sure your project area matches one of these.
Step 5: Attach all required supporting documents to your filled-in application form as per the instructions.
Step 6: Send your complete application, along with the required documents, to the specified address mentioned on the MeitY site under the scheme section.
Benefits of the Multiplier Grants Scheme
Promotes Industry-Academia Collaboration You benefit from close collaboration between your business and leading academic or government R&D institutions, helping both sides learn and innovate together.
Boosts Indigenous Product Sales By investing in innovative, R&D-based products or packages, you strengthen your company’s ability to compete against global products and drive more sales of locally made solutions.
Encourages R&D for Business Innovation You can develop next-generation technologies in electronics and IT, with support for prototyping, packaging, and steps towards commercialization.
Focus on Market-Ready Products The scheme ensures your project includes detailed market research, including buyer needs, pricing, demand-supply, and SWOT analysis, leading to technically and commercially viable offerings.
Substantial Government Grants Receive up to ₹2 crore funding for individual sector projects (of less than two years) or up to ₹4 crore for consortium projects (of up to three years), covering key project expenses.
Facilitates IP and Royalty Sharing Before you get funds, you sign clear agreements on intellectual property rights and royalty or lump sum sharing, ensuring all parties benefit from commercial outcomes.
Strengthens Business Expertise Your team gains industry-focused R&D experience, helping you adapt quickly to market trends with cost-competitive products.
Supports Startups and Entrepreneurs If you’re a startup or MSME, this scheme gives you direct funding access and helps transform research results into real business opportunities faster.
Real-World Examples of Multiplier Grants Scheme
Development of indigenous electronics products in partnership with IITs.
Collaborative IT solutions for healthcare with NITs.
Industry-academia projects for advanced manufacturing technologies.
Related Government Support Plans with Multiplier Grants Scheme
Scheme Name
How it Links with MGS Scheme
Startup India
Both support startups and innovation; MGS provides R&D funding.
MSME Innovation Scheme
Complements MGS by supporting MSME innovation and product development.
Production-Linked Incentive (PLI) Scheme for Electronics
Offers direct incentives linked to your production output when manufacturing electronics and IT hardware.
Technology Incubation & Development of Entrepreneurs (TIDE)
Supports tech startups and can be combined with MGS for funding.
Final Words
If you’re a new MSME owner in electronics or IT, the Multiplier Grants Scheme is a powerful opportunity to innovate, collaborate, and grow. By sharing both the risk and the resources with the government and academic partners, you can turn your R&D ideas into successful, market-ready products.
Multiplier Grants Scheme – Support for R&D in India