Starting your own business? These govt schemes can support your startup in India
2 min read 30 May 2023, 11:18 AM ISTThe Indian government, under the leadership of Prime Minister Narendra Modi, has begun and promoted the Startup India Initiative to help aspiring entrepreneurs.
PremiumIn this era of startups, India is leading the world as the country has created a robust ecosystem for businesses and entrepreneurs. Hence, India is now called the ‘startup hub’, ranking third with 90,000 'Start-Ups' and 107 unicorn companies worth $30 billion. The government, under the leadership of Prime Minister Narendra Modi, has begun and promoted the Startup India Initiative to help aspiring entrepreneurs.
It has also launched various schemes to train as well as provide technical support, financial assistance, subsidies, and other services to budding entrepreneurs to fuel their growth and mark their presence in the market. These startups can also get worldwide recognition and attract foreign investors with government support.
List of schemes launched to help Indian startups
1) Multiplier Grant Scheme: The Department of Electronics and Information Technology (DeitY) initiated the Multiplier Grant Scheme (MGS) to empower collaborative research and development among industries which helps to boost the growth of goods and services. Under this scheme, government grants are limited to a maximum amount of ₹2 crore per project with a duration of less than two years.
2) Dairy Entrepreneurship Development Scheme: The Department of Animal Husbandry, Fisheries, and Dairying launched the DEDS scheme with the aim to create self-employment in the dairy sector. The activities include the enhancement of milk production, procurement, processing, preservation, transportation, and marketing. Under this scheme, the government provides back-end capital for bankable projects of 25% of the total project cost for candidates under the general category and 33.33% for farmers under the SC/ST category.
3) Credit Guarantee Fund Trust for Micro and Small Enterprises: The Ministry of MSME and the Small Industries Development Bank of India started the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to strengthen the credit delivery system and facilitate the credit flow in the MSE sector. Under this scheme, the government provides loans at highly subsidized rates and with zero collateral to small-scale industries and micro-level businesses. It covers fund and non-fund-based credit facilities up to ₹200 lakhs for every eligible borrower and the funds are dispersed by the SIDBI.
4) Single Point Registration Scheme: The National Small Industries Corporation (NSIC) manages the Single Point Registration Scheme (SPRS) for supporting MSE with an objective to increase purchases from the small-scale sector. Under this scheme, MSEs need to get registered with NSIC so that they can be exempted from paying the EMD. Apart from this, other benefits include free-of-cost tender, tender participation, procurement from MSEs, etc. The government also prescribed a minimum of 25% of the total annual purchases from MSEs only.
5) High Risk and High Reward Research: The government, under this scheme, aims to support and invite innovative risky ideas which can lead to a broader impact in science and technology. If successful, such startups can be highly rewarding in the field of science. There is no fixed budget limitation for these projects, Apart from overhead grants, the research grant will cover travel costs, consumables, contingencies, equipment, etc. The government provides funding to such businesses for three years which can be extended to five years in exceptional cases.
6) Zero Defect Zero Effect Scheme: The Indian government launched the Zero Defect Zero Effect (ZED) scheme in 2016 to motivate the MSMEs towards the assessment of their business for ZED and support them by providing manufacturing efficiency, production, financial efficiency, better human resource, energy saving methods, product designs, etc.
