India’s startup ecosystem is rapidly expanding its digital infrastructure while getting global recognition for its innovation and entrepreneurship. Starting a new business and scaling it can be challenging. To help the companies grow the Indian government has been launching various schemes and initiatives. These schemes aim to support and empower entrepreneurs in running their businesses smoothly. The Ministry of Commerce and Industry mentioned that the DPIIT recognized 1,40,803 entities as startups.
These schemes launched by the government aim to provide startups with financial assistance, exemption from tax, mentorship programs, and infrastructure support. These programs are launched to help startups survive in the competitive environment and help them to scale up their operations. These schemes will help everyone regardless of whether a new entrepreneur is looking to take a first step in this industry or an established startup aiming to scale. These ten government schemes can be a game-changer for your business. This article mentions some of the top ten essential government schemes that every entrepreneur should know. These initiatives allow businesses to reach new heights and take on more challenges while enabling them to contribute to the Indian economic landscape and achieve business goals.
Aatmanirbhar Bharat App Innovation Challenge
The app Innovation Challenge aims to promote Make in India and Digital India among startups. The scheme is only accessible to Indian citizens. The Ministry of Electronics and IT makes the final decision about selection at all stages. The winners are decided based on the user interface, security, scalability, vision of the mobile application for the next five years, and robustness. The mobile applications like Chingari, YourQuote, and Koo, were given Rs 20 lakh, Rs 15 lakh, and Rs 10 lakh respectively for securing the first, second, and third place.
Credit Guarantee Fund Trust for Micro and Small Enterprises
This Startup India scheme aims to catalyze the flow of institutional credit to Micro & Small Enterprises. CGTMSE was set up by MSME and the Small Industries Development Bank of India together to support small businesses. This policy aims to provide startups with loans at low interest rates without requiring collateral. The government works together with SIDBI to offer a maximum loan of up to Rs 100 lakh. This scheme has approved the guarantees worth 1 lakh crore during FY23. The program helps startups to improve their financial conditions in India.
Dairy Processing and Infrastructure Development Fund
The program aims to help dairy businesses compete in the market and maintain long-term benefits for the farmers. DIDF was introduced during the union budget 2017-18 with a total corpus of Rs 8.004 crore with the National Bank for Agriculture and Rural Development. The government officially announced the launch of this fund with a total system expense of Rs 11,184 crore. The businesses that work around milk-producing, multi-state milk cooperatives, NDDB subsidiaries, and similar are eligible for this scheme. The project focuses on establishing processing and installing electronic milk adulteration testing equipment in villages and developing an efficient milk procurement system.
Multiplier Grants Scheme
The Department of Electronics and Information Technology implemented this scheme to encourage collaborative research and development between industries and institutions for the development of packages. The program aims to promote and process the development of products and services. Under the Multiplier Grants Scheme, the government grants a maximum sum of Rs 2 crore for each project. The project term is less than two years. The scheme aims to establish and strengthen the linkage between institutes and industries. It accelerates the development of indigenous products. The institute and industry need to apply jointly to get financial support from this scheme.
Startup India Seed Fund Scheme
This scheme was launched by the government of India to provide financial assistance to startups. The DPIIT-recognized startups that are not more than 2 years old at the time of application are eligible for this fund. The government will invest up to Rs 20 Lakhs for developing concepts and Rs 50 Lakhs in startup for growing its services. SISFS was launched with a total budget of Rs 945 crore to provide financial support to over 3600 startups and 300 incubators. The government invests up to Rs 5 crore funds in the selected entrepreneurs. The program aims to support early-stage startups by offering them seed funding.
Startup India Initiative
This Startup India scheme aims to provide tax benefits to Indian entrepreneurs for over five years. The scheme creates around 5.5 lakh job opportunities for youths in India. This government startup scheme extended the maximum age for most eligible startups to 7 years and 10 years for biotechnology startups from the date of establishment. The Department for Promotion of Industry and Internal Trade has taken various initiatives, and projects & undertaken recurring models under this scheme to grow the Indian Startup Ecosystem. This is the best government-sponsored startup India scheme for business owners.
Software Technology Park
The Indian government launched this scheme to integrate the government concept of 100% Export Oriented Units and Export Processing Zones. The program aims to increase the export of computer software and technical services through communication infrastructure and physical media. The initiative of this government’s scheme includes the worldwide idea of Science Parks or Technology Parks. Under this program, the Jurisdictional STPI authorities can clear less than Rs.100 million worth of projects using Indian Investment. This has simplified the minimum export performance norms.
Pradhan Mantri Mudra Yojana
This scheme was launched by the government with the goal of providing a loan of around Rs 10 lakh to non-farming small and micro startups and non-corporate businesses working in the manufacturing, service, or trading industry. MUDRA is a refinancing institution that provides loans under this scheme that can be availed from nearby branch offices of a bank, MFIs, or NBFCs. The loan is eligible for any Indian citizen with a business plan. The eligible entrepreneur can approach banks for the loaning process while following the usual terms of the Reserve Bank of India. This program aims to create a sustainable and value-based startup ecosystem and help the Indian economy grow.
Atal Innovation Mission
NITI Ayog launched this scheme for startups in 2016 to help them bring innovative ideas through new programs and policies. The scheme was designed to support development in economic areas. This flagship initiative aims to promote innovation and entrepreneurship across the country. The program provides a platform for collaboration opportunities with different companies or stakeholders and creates an umbrella structure for better innovation and startup ecosystems in India. The AIM scheme offers Rs 12,00,000 for the first year for setup costs and Rs 2,00,000 is granted for maintenance and operational expenditure for the next five years.
Conclusion:
In conclusion, the Indian government has introduced various schemes to support and empower startups. The programs are focused on providing tax exemptions, mentorship programs, financial assistance, and infrastructure support. These initiatives aim to help startups survive in a competitive environment and scale up their operations. These schemes offer a platform for collaboration, provide financial support, and promote innovation and entrepreneurship across India. The Startup India schemes act as a catalyst for helping the business grow and develop new and innovative solutions across the country. The government intends to provide financial assistance to the startups generate more job opportunities for youths in India and improve the Indian economy. Overall, these are initiatives taken by the Indian government to help entrepreneurs boost their startups and achieve their business goals.
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