IPS Furniture Subsidy — Up to ₹2.5 Cr for DNH & DD Units

The Investment Promotion Scheme (IPS) for Thrust Sectors: Assistance For Furniture Sector is a subsidy programme delivered by the Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu. Rather than a single one-time grant, it stacks several subsidies and reimbursements on top of one another, with individual heads of support starting at ₹75,000 and the combined package reaching as high as ₹2.5 crore.

Furniture has been picked out as a thrust sector for the Union Territory, and the definition used is deliberately wide. Units producing Plastic, Steel, Brass, Metal, Cane, Wooden, Bamboo, Fibre Glass or Marble furniture all fall inside the category. First notified on July 3, 2015, the assistance now operates under an extended window covering May 20, 2022 to May 19, 2027.

The aims stretch beyond factory output. The administration wants more women running businesses in the territory, wants local residents brought into jobs through incentives for hiring them, and wants a furniture ecosystem strong enough to compete. Reimbursing part of what an enterprise spends on plant, interest, power, retail space and workforce training is the route chosen — which makes fresh ventures, capacity expansion and diversification noticeably less risky for MSME owners.

• Subsidies and reimbursements worth up to ₹2.5 crore for furniture sector MSMEs
• Covers capital investment, credit-linked interest, power, exhibition rent, training fees and showroom costs
• Open to new units and to existing units expanding or diversifying
• Only for enterprises located in Dadra and Nagar Haveli and Daman and Diu
• Window runs May 20, 2022 to May 19, 2027; apply within a year of starting commercial production
• Extra emphasis on women entrepreneurs and jobs for local residents

The scheme is built for MSME units in the furniture sector that are either starting fresh or adding capacity.

• Stage: New manufacturing or service units, along with existing units going in for expansion or diversification.
• Sector: Furniture manufacturing and furniture-related services, within the segments notified as thrust sectors.
• Location: The enterprise must be situated inside the Union Territory of Dadra and Nagar Haveli and Daman and Diu.
• Timing: Commercial production must have started between May 20, 2022 and May 19, 2027.
• Application window: File online within one year of the date the enterprise becomes eligible, counted from the commencement of commercial production.

Since the scheme is aimed at the MSME segment, an Udyam MSME registration is effectively expected of applicants. DPIIT Startup India recognition is not listed anywhere as a requirement.

IPS Furniture Subsidy — Up to ₹2.5 Cr for DNH & DD Units is open to startups at any stage. It is open to startups registered anywhere in India.

IPS Furniture Subsidy — Up to ₹2.5 Cr for DNH & DD Units accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Support arrives as reimbursements and subsidies across six heads.

• Capital investment subsidy: 20% of capital investment, capped at ₹50,00,000. This softens the upfront cost of setting up or expanding a manufacturing unit.
• Credit-linked interest subsidy: 60% of interest per annum, up to ₹50,00,000 a year, for a maximum of 5 years or the loan repayment period, whichever ends earlier.
• Space rent subsidy: 50% of the rent actually paid for participating in industrial exhibitions abroad, capped at ₹5,00,000.
• Course fee reimbursement: 50% of the course fee, up to ₹75,000 per person, for training in modern furniture manufacturing at reputed institutions — available for up to 5 persons per industry course.
• Power rate incentive: ₹1 per unit of power consumed, reimbursed for one year from the date production begins, up to ₹50,00,000.
• Showroom establishment reimbursement: 20% for an owned showroom, capped at ₹50,00,000; or 25% of the actual rent for a rented showroom over 3 years, provided the showroom is at least 2,000 square feet.

Added together, these benefits can reach ₹2.5 crore for a single enterprise.

IPS Furniture Subsidy — Up to ₹2.5 Cr for DNH & DD Units is offered by Department of Industries, UT Administration of Dadra and Nagar Haveli and Daman and Diu, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

Applications are assessed through a review of what is filed online. Once submitted on the Single Window Portal, the papers go to the District Industries Centre (DIC), or to a committee designated by the Department of Industries, for scrutiny.

The panel tests the application against the scheme's requirements — where the unit is located, whether operations have genuinely begun, and whether the activity truly belongs to the furniture thrust sector. How complete and accurate the filing is also carries weight.

Beyond eligibility, decision-makers look at the likely economic effect: the jobs created for local residents and the unit's contribution to industrial growth in the territory. Applicants who clear this assessment then move ahead to receive the sanctioned subsidies and reimbursements.

Before you apply to IPS Furniture Subsidy — Up to ₹2.5 Cr for DNH & DD Units, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

IPS Furniture Subsidy — Up to ₹2.5 Cr for DNH & DD Units is best suited for startups in India seeking non-dilutive funding of ₹75,000 – ₹2.5Cr. If that describes your startup, review the eligibility criteria above before applying.