Sikkim unveils Rs. 5 lakh grant scheme to boost youth entrepreneurship

The Government of Sikkim has officially launched the Mukhyamantri Yuva Udyamsheelta Vikas Yojna, a scheme designed to uplift aspiring entrepreneurs by offering direct financial assistance of up to ₹5 lakh. This landmark initiative is aimed at catalyzing local entrepreneurship, particularly among unemployed youth, women, and rural innovators.

The scheme, notified on June 18, 2025, reflects the government’s commitment to fostering a vibrant entrepreneurial ecosystem by addressing one of the biggest hurdles—access to capital. Under the scheme, eligible youth will receive seed funding to start businesses in manufacturing or services sectors or to scale up existing ventures. Emphasis is being laid on agro-based and livestock-based enterprises, promoting sustainable development in rural areas.

The scheme’s objective goes beyond just financial aid. It aims to nurture innovation, support start-ups and small businesses with unique ideas, and generate employment at the grassroots level. It particularly seeks to empower marginalized sections, giving preference to women entrepreneurs, persons with disabilities, orphans, those from Below Poverty Line (BPL) households, and individuals from economically weaker sections, as recognized by the state government.

To qualify, applicants must be local bonafide residents of Sikkim, aged 21 years or above, and must possess valid domicile certificates or trade licenses. For those intending to launch agro or livestock-based businesses, a certificate from the Village Administrative Center is mandatory to ensure authenticity and rural engagement.

However, the scheme comes with clear guidelines to prevent overlap with other ongoing central and state schemes. Applicants who have previously availed benefits under PMEGP, PMFME, Skilled Youth Startup Scheme (SYSS), or other similar initiatives are not eligible under this new program. This ensures that the grant reaches fresh candidates and encourages broader participation in the entrepreneurial space.

Speaking on the initiative, officials emphasized that the Mukhyamantri Yuva Udyamsheelta Vikas Yojna aligns closely with the vision of Hon’ble Chief Minister Prem Singh Tamang, who has consistently prioritized youth-centric development policies. The CM’s government has underlined self-employment and rural enterprise development as core strategies for inclusive growth in Sikkim.