Government Schemes For Entrepreneurs: The Indian government aims to promote innovation and entrepreneurship via various programs and policies. India’s demographic advantage presents a major opportunity for innovation, entrepreneurship, and job creation, benefiting both the country and the globe.
The government of India encourages entrepreneurship via its Startup India program, which provides support to firms at every stage of their development. The project offers a thorough four-week free online learning curriculum with a 360-degree strategy to help entrepreneurs.
Even more crucially, the ‘Fund of Funds’ was established to facilitate the acquisition of capital for entrepreneurs.
Top 18 government schemes for startups in India to support entrepreneurs
- Mudra Yojana Scheme
- Pradhan Mantri Employment Generation Programme (PMEGP)
- Make in India Initiative
- Startup India Scheme
- Stand-Up India Scheme
- Udyog Aadhaar Registration
- Atal Innovation Mission (AIM)
- Pradhan Mantri Mudra Loan Yojana (PMMY)
- National Entrepreneurship Awards (NEA)
- National Rural Livelihoods Mission (NRLM)
- Credit Guarantee Fund Scheme for Startups (CGSSS)
- Technology Business Incubator (TBI) Scheme
- BIRAC Biotechnology Ignition Grant (BIG) Scheme
- National SC/ST Hub
- Export Promotion Capital Goods (EPCG) Scheme
- Single Window Clearance
- Skill India Mission
- Digital India
Top 18 government schemes for startups in India to support entrepreneurs,India is experiencing a startup age, establishing a resilient environment for enterprises and entrepreneurs. India is currently referred to as the ‘Startup Hub’ due to its over 99,000 businesses and 107 unicorn firms valued at $30 billion. Prime Minister Narendra Modi has launched many efforts to assist emerging enterprises.
The government programs seek to provide technical support, subsidies, financial aid, and other services to facilitate the growth of startups and establish their position in the global commercial arena. Government support helps companies in achieving global reputation and attracting international investors.
Mudra Yojana Scheme
Mudra Yojana Scheme The Pradhan Mantri Mudra Yojana (PMMY) is a premier initiative of the Government of India. The program provides microcredit/loans of up to Rs. 10 lakhs to income-generating micro companies operating in the non-farm sector, including manufacturing, commerce, or service industries, as well as agriculture-related activities such as poultry, dairy, and beekeeping. The Scheme offers financial support from Member Lending Institutions to income-generating activities in the non-corporate, non-farm sector for micro and small enterprises.
These micro and small entities consist of millions of proprietorships and partnerships operating as small manufacturing units, service sector establishments, retailers, fruit and vegetable vendors, truck operators, food service providers, repair shops, machine operators, small industries, artisans, food processors, and others.Loans under the Pradhan Mantri Mudra Yojana are accessible via qualified Member Lending Institutions (MLIs), which comprise:
Loans under the Pradhan Mantri Mudra Yojana are accessible via qualified Member Lending Institutions (MLIs), which comprise:
- Public Sector Banks
- Private Sector Banks
- State operated cooperative banks
- Rural banks from regional sector
- Micro Finance Institution (MFI)
- Non-Banking Finance Company (NBFC)
- Small Finance Banks (SFBs)
- Other financial intermediary approved by Mudra Ltd. as member financial institutions
Interest rate
The interest rates are declared by Member Lending Institutions from time to time as per Reserve Bank of India guidelines based on which applicable interest rate is determined.
Upfront fee/Processing charges
Banks may consider charging of upfront fee as per their internal guidelines. The upfront fee/processing charges for Shishu loans (Covering loans upto Rs. 50,000/-) are waived by most Banks.
Benefits
The scheme has been classified under three categories as ‘SHISHU’, ‘KISHORE’ and ‘TARUN’ to signify the stage of growth / development and funding needs of the beneficiary micro unit/ entrepreneur.
Shishu: Covering loans upto Rs.50,000/-.
Kishore: Covering loans above Rs.50,000/- and upto Rs. 5 lakhs.
Tarun: Covering loans above Rs. 5 lakhs and upto Rs. 10 lakhs.
Pradhan Mantri Employment Generation Programme (PMEGP)
Initiated in August 2008, the Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy initiative overseen by the Ministry of Micro, Small and Medium Enterprises (MSME). PMEGP seeks to provide job possibilities by establishing micro-enterprises in the non-farm sector for both rural and urban regions. The program has received approval for continuance during the 15th Finance Commission cycle, namely for the five-year period from 2021-22 to 2025-26. PMEGP was established by consolidating the two programs that were operational till 31st March 2008: the Prime Minister’s Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP). An allocation of ₹13,554.42 Crore has been sanctioned for PMEGP over five financial years (2021-22 to 2025-26) to establish about 400,000 projects, resulting in the creation of 3,000,000 jobs at a rate of eight individuals per unit. Furthermore, 1,000 units will be renovated annually.
Objectives:
- To generate employment opportunities in rural as well as urban areas of the country through the setting up of new self-employment ventures/projects/micro enterprises.
- To bring together widely dispersed traditional artisans! rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.
- To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
- To increase the wage-earning capacity of workers and artisans and contribute to an increase in the growth rate of rural and urban employment.
Implementing Agencies:
- At the National level, the scheme is being implemented by the Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency.
- At the State level, the scheme is implemented through State offices of KVIC, State Khadi and Village Industries Boards (KVIBs), District Industries Centre’s (DICs), Coir Board (for coir-related activities), and Banks. The government may also involve other suitable agencies for the implementation of the scheme.
Make in India Initiative
Make in India is a Government of India initiative introduced by Prime Minister Narendra Modi in 2014, aimed at enhancing the local manufacturing sector and increasing investment in the nation. This article thoroughly examines the aims, programs, and activities associated with the Make in India Scheme, along with 25 focal sectors, benefits, problems, and developments linked to it.
Startup India Scheme
The Startup India initiative was initially announced by Prime Minister Narendra Modi on August 15, 2015, at the Red Fort in New Delhi. This effort was launched by the Government of India to establish more than 75 startup assistance centers nationwide.
The Startup India plan, initiated on January 16, 2016, is a significant government initiative designed to encourage and assist startups in India via the provision of bank financing. The inauguration was conducted by former Finance Minister Arun Jaitley.
Stand-Up India Scheme
A program by the Ministry of Finance to finance SC/ST and/or Women Entrepreneurs by enabling bank loans for establishing a greenfield project in the manufacturing, services, trade sectors, and activities related to agriculture. The aim of this initiative is to provide bank loans ranging from Rs. 10 lakh to Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one female borrower per bank branch for establishing a greenfield firm. For non-individual firms, a minimum of 51% of the ownership and controlling interest must be owned by either a Scheduled Caste/Scheduled Tribe or a female entrepreneur.
Udyog Aadhaar Registration
The Ministry of MSME instituted Udyam Registration as a digital platform to enhance and simplify the registration processes for MSMEs. It provides a single-window system for the registration, classification, and tracking of MSMEs. Businesses are classified under Udyam Registration based on their investment in machinery and/or equipment and their annual turnover.
Udyam Registration is accessible to enterprises classified under the MSME category. The MSMEs are classified based on their investments and turnover. Udyam Registration is entirely digital and may be completed using the official Udyam Registration website. The registration procedure is straightforward and requires just the submission of some business facts.
Upon registration with MSME, you may enjoy several advantages offered by the Government, including preferred treatment in government bids, enhanced loan accessibility, subsidies, and different assistance programs. It further facilitates the simplification of corporate operations.
Atal Innovation Mission (AIM)
The Atal Innovation Mission (AIM) is a premier project established by NITI Aayog in 2016 to foster innovation and entrepreneurship nationwide. AlM aims to establish and foster an ecosystem of innovation and entrepreneurship nationwide, including schools, universities, research institutions, MSMEs, and industrial sectors.
National Entrepreneurship Awards (NEA)
The Ministry of Skill Development and Entrepreneurship (MSDE) has established the National Entrepreneurship Awards (NEA) to acknowledge and commend exceptional young first-generation entrepreneurs and their ecosystem builders for their significant contributions to the advancement of entrepreneurship.The NEA initiative started in 2016 and continued through 2017 and 2018.The National Entrepreneurship Awards (NEA) 2019 constituted the fourth iteration in the NEA series.
The NEA invites Young Entrepreneurs and Entrepreneurial Ecosystem Builders from around India to participate in the National Entrepreneurship Awards. It aims to cultivate and solidify the entrepreneurial mindset among future generations and the youth of India.
A total of 39 awards under NEA 2019 were awarded to young entrepreneurs up to the age of 40 and their ecosystem builders across various industries, regions, and socio-economic backgrounds via nomination or self-nomination. The objective was to showcase exemplary models for others to replicate and enhance.
National Rural Livelihoods Mission (NRLM)
The National Rural Livelihoods Mission (NRLM) – Aajeevika was initiated by the Ministry of Rural Development (MoRD), Government of India in June 2011 as a reformed iteration of the Swarna Jayanti Gram Swarozgar Yojna (SGSY). The NRLM is tasked with reaching 100 million impoverished individuals in 600,000 communities nationwide.
Credit Guarantee Fund Scheme for Startups (CGSSS)
The Department for Promotion of Industry and Internal Trade (DP/IT), Ministry of Commerce and Industry, Government of India, offers credit guarantee coverage through the National Credit Guarantee Trustee Company Limited (NCGTC) for debt facilities provided by banks to Start-ups recognized by the DPIIT.
Technology Business Incubator (TBI) Scheme
Technology-driven startups are characterized by high risk and great growth potential, necessitating a supportive environment such as NIDHI-TBI to improve their chances of success. The Innovation and Entrepreneurship Division of the Department of Science and Technology, Government of India, is facilitating Technology Business Incubators, predominantly within academic, technical, and management institutions, to leverage innovations and technologies for venture creation by utilizing the expertise and infrastructure provided by the host institution.
Globally, there is an acknowledged need for instruments such as Technology Business Incubators (TBI) to initiate technology-driven and knowledge-based firms. Research indicates that these strategies facilitate the development of technology-driven startups and markedly enhance their survival rates. TBIs expedite the rapid commercialization of research findings.
BIRAC Biotechnology Ignition Grant (BIG) Scheme
BIG is the flagship initiative of BIRAC, offering essential resources and assistance to emerging firms and enterprising people. BIG is the preeminent early-stage biotechnology investment initiative in India. Funding award of up to INR 5 million (about USD 70,000) for exemplary new concepts to develop and enhance ideas to proof-of-concept stage.
National SC/ST Hub
The National SC-ST Hub has been established to offer professional assistance to Scheduled Caste and Scheduled Tribe entrepreneurs in meeting the requirements of the Central Government Public Procurement Policy for Micro and Small Enterprises Order 2012, implementing relevant business practices, and utilizing the Stand Up India initiative. The Hub was inaugurated by the Honorable Prime Minister, Shri Narendra Modi, on October 18, 2016. The Hub is being established by the National Small Industries Corporation (NSIC), a public sector entity under the jurisdiction of the Ministry of MSME.
Export Promotion Capital Goods (EPCG) Scheme
The Export Promotion Capital Goods (EPCG) Scheme enables exporters to import capital goods with a lower customs tax to enhance the production of quality products and services for export. The EPCG plan provides a 3% customs tax on capital goods for pre-production, production, and post-production phases. It permits the importation of used capital items without age limitations.
Skill India Mission
Skill India’s mission is to empower young people to take charge of their own careers by teaching them marketable skills; this initiative isn’t a direct shot at startups, but it does attempt to encourage entrepreneurship.
Conclusion
The Government of India has implemented many programs and policy measures to promote a culture of innovation and entrepreneurship throughout the nation. India has a distinct demographic advantage, which presents substantial potential for innovation, entrepreneurship, and job creation, benefiting both the country and the global community.