India BPO Promotion Scheme (IBPS)
By Ministry of Electronics and Information Technology (MeitY)
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Quick Answer
Financial support in the form of Viability Gap Funding (VGF) is provided to eligible companies to establish and operate BPO/ITeS units in smaller cities and towns across India.
- Funding amount
- Up to ₹1 Lakhs
- Funding type
- Grant
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this grant
The India BPO Promotion Scheme (IBPS) is a flagship initiative launched by the Ministry of Electronics and Information Technology (MeitY), Government of India, under the broader Digital India Programme. Its primary objective is to foster socio-economic growth by creating widespread employment opportunities for the nation's youth, particularly in smaller cities and towns. The scheme also aims to stimulate investment in the Information Technology (IT) and Information Technology Enabled Services (ITeS) sectors by supporting the establishment and expansion of Business Process Outsourcing (BPO) and ITeS operations in these locations. The IBPS operates on a Viability Gap Funding (VGF) model, providing crucial financial assistance to eligible companies and entrepreneurs. This funding helps offset significant capital (CAPEX) and operational (OPEX) expenditures incurred in setting up and running BPO/ITeS units. By reducing financial barriers, the scheme encourages businesses to explore and invest in non-metro areas, thereby decentralizing IT-related employment and boosting regional economies. The Software Technology Parks of India (STPI) serves as the nodal agency for the implementation of this scheme, overseeing its operational aspects and ensuring its reach. The initiative is ambitious, targeting the establishment of 48,300 BPO/ITeS seats across India, specifically excluding the North-Eastern region to focus on other underserved areas, while also giving special consideration to hilly states like Himachal Pradesh, Jammu & Kashmir, and Uttarakhand to promote equitable development.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
Overview MeitY Startup Hub (MSH) is the startup-focused initiative of the Ministry of Electronics and Information Technology (MeitY), Government of India. It serves as the central coordination platform linking incubation centres, accelerators, investors, and corporates to…
Learn moreBenefits & Funding
- Amount
- Up to ₹1 Lakhs
- Fund type
- Grant
- Equity
- Equity-free
- Repayment
- Non-repayable
What You Get
The India BPO Promotion Scheme offers substantial financial assistance to companies establishing BPO/ITeS units. Beneficiaries can receive Viability Gap Funding (VGF) of up to 50% of their eligible capital and operational expenditures, capped at ₹1 lakh per BPO/ITeS seat. This non-repayable grant directly supports the setup and operational costs. Additionally, the scheme provides several special incentives within the ₹1 lakh per seat cap to encourage inclusive growth and superior performance. These include a 5% incentive for units employing at least 50% women, a 2% incentive for employing 4% differently abled persons, and up to a 10% incentive for exceeding employment targets. Further encouragement is provided with a 5% incentive for local entrepreneurs and another 5% for units established outside state capitals. A training incentive for regular employees is also part of the package, promoting skill development within the workforce.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the India BPO Promotion Scheme involves a thorough evaluation of submitted proposals. Once an applicant company submits its bid through the STPI portal, the proposal is reviewed by a competent authority established under the scheme. This evaluation assesses the company's intent to establish and operate BPO/ITeS units, its adherence to eligible locations, and its potential to create approved BPO/ITeS seats and generate employment opportunities, especially for youth. The authority scrutinizes the viability and impact of the proposed operations to ensure alignment with the scheme's objectives before granting approval for financial assistance.
Application Process
- 1
Visit Portal
Applicant visits the official STPI portal for the scheme.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
Submit on the official portal
Use the official application link and verify all details before final submission.
- 3
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the India BPO Promotion Scheme?
The scheme aims to create employment opportunities for youth and promote investment in the Information Technology (IT) and Information Technology Enabled Services (ITeS) sector by establishing BPO/ITeS operations in smaller cities and towns across India.
Who is eligible to apply for this scheme?
Any company or entrepreneur intending to establish and operate a Business Process Outsourcing (BPO) or Information Technology Enabled Services (ITeS) unit in eligible locations under the scheme is eligible. Applicants must be able to create approved BPO/ITeS seats and employment opportunities.
What kind of financial support is provided?
Financial support is provided in the form of Viability Gap Funding (VGF), covering up to 50% of eligible capital and operational expenditures, with an upper ceiling of ₹1 lakh per BPO/ITeS seat.
Are there any special incentives under the scheme?
Yes, special incentives are offered within the ₹1 lakh/seat cap, including 5% for employing 50% women, 2% for employing 4% differently-abled persons, up to 10% for generating employment beyond targets, 5% for local entrepreneurs, and 5% for setting up BPO units outside state capitals, along with training incentives.
How does the application process work?
The application process is online through the Software Technology Parks of India (STPI) portal. Applicants need to review guidelines, submit a proposal/bid, upload supporting documents, and upon approval, establish the unit and submit claims for VGF.
Which locations are eligible for establishing BPO/ITeS units?
BPO/ITeS operations can be established in eligible locations across the country, except for the North-Eastern region. Special consideration is given to hilly states like Himachal Pradesh, Jammu & Kashmir, and Uttarakhand.
Sources
Data on this page is compiled from official program and provider references.
