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08 Feb, 2025
By Online Legal India
Published On 06 Feb 2025
Updated On 07 Feb 2025
Category Startup
The Government provides various schemes to support startups. The government schemes focus on improving the welfare of citizens, building employment opportunities, and reducing poverty. The schemes provide a healthy ecosystem for businesses and help startups to grow. In this piece of writing, you will get to know the top 10 government schemes for startups in India.
A startup is a newly established business enterprise that focuses on rapid growth and development of products or services. It is a company founded by one or more entrepreneurs to develop a new and innovative product or service. Startups face initial expenses of high costs and limited revenue for business purposes. Moreover, it prioritizes innovation, scalability, and identifying market demands for business purposes. The eligibility criteria for government schemes vary from one scheme to another.
The government Startup India scheme was established in the year of 2016. It focuses on contributing financial assistance, regulatory ease, and support services to early-stage startups. It contributes various schemes and support mechanisms for entrepreneurs to build a powerful startup for business.
The Startup India scheme is powered by the DPITT (Department for Promotion of Industry and Internal Trade). It provides financial assistance and subsidies to potential business owners and organizations. Moreover, it helps startups to reduce costs, navigate regulations, and gain access to capital for business growth. It also helps to increase job opportunities and produce wealth within the Indian Economy.
The Startup India Initiative was launched by the Indian government on 16th January 2016. It focuses on building a powerful start-up ecosystem through a variety of initiatives. It contributes to a healthy ecosystem for business and entrepreneurship among the citizens of the country. This program is maintained by a dedicated Startup India team from (DPIIT) the department for Promotion of Industry and Internal Trade. It indicates that it has official government support for businesses to promote innovation and Entrepreneurship in India.
This government scheme for startup has variety of benefits:
The government of India established the Startup India seed fund scheme to encourage innovation and provides opportunities for entrepreneurs. It contributes seed funding to startups to conduct a proof of concept trials with an innovative idea. Funding from investors and banks are only available for startups. So, startups needs huge funding for business growth and success.
Startup India Seed Fund Scheme (SISFS) was created by DPIIT with a budget allocation of INR 945 crore. It focuses on contributing financial assistance for proof of concept, prototype development, commercialization, product trials, and market entry for startups. It will provide support to approximately 3600 entrepreneurs through 300 incubators in the next 4 years. Up to ?20 Lakhs as a grant for validation of Proof of Concept, prototype development, or product trials.
The eligibility criteria of SISFS:
The government of India establishes the Credit Guarantee Fund Trust for startups (CGSS). It provides credit guarantees to loans extended to DPIIT-recognized startups by scheduled commercial Banks, Non-banking Financial Companies (NBFCs), and Venture Debt Funds (VDFs) Under SEBI registered Alternative Investment Funds.
Moreover, CGSS provides a guarantee to Member Institutions for startups. A Trustee contributes a credit guarantee to lending institutions for loans.
The government of India established an Atal Innovation Mission (AIM) to make and promote a culture of innovation and entrepreneurship. It is a flagship program that focuses on developing new programs and policies to encourage innovation. It provides platforms and collaboration opportunities for stakeholders within the nation. It creates initiatives, policy development, and support systems to foster an innovative culture. AIM serves as an umbrella structure for innovation and entrepreneurship within the ecosystem of the country.
Software Technology Parks of India (STPI) was established in 1991 under the Ministry of Electronics and Information Technology. It encourages innovation, supports startups, stimulates product development, and drives research and development (R&D) to promote the IT industry in India. The technologies include IoT, Artificial Intelligence (AI), Blockchain, Machine Learning (ML), Robotics, and computer vision.
STPI is considered as the establishing Centers of Excellence (CoEs) and technology Incubators across India to create leadership within the nation. It has launched 22 centers of Entrepreneurship (CoEs) and developed a network of 63 centers within their respective regions.
Hon’ble Prime Minister launched the Pradhan Mantri Mudra Yojana (PMMY) on April 8, 2015. It is a scheme that provides loans up to 20 lakh for entrepreneurs. These loans are defined as MUDRA loans under PMMY that are available to Indian Citizens. These loans are provided by Commercial banks, RRBs, MFIs, small finance banks, and NBFCs. Eligible persons can take this loan from a bank.
Moreover, it focuses on granting loans to non-corporate, non-farming small and micro companies functioning.
The government launched the Ebiz portal in 2013. It is considered as the India’s first online Government-to-business (G2B) platform developed by Infosys. It provides multiple services on a single website. It allows entrepreneurs to apply for clearances, track application progress, and make online payments. It focuses on simplifying the process of doing business by contributing easy access to information and government services. It provides 29 services in five Indian states including New Delhi, Haryana, Maharashtra, Andhra Pradesh, and Tamil Nadu with plans to expand further.
The government of India and the National Bank for Agriculture and Rural Development (NABARD) established the Dairy Processing and Infrastructure Development Fund (DIDF) in 2017. It provides subsidized loans at a rate of 6.5% to milk cooperatives for replacing old processing and chilling plants. It focuses on building an efficient milk procurement system.
However, DIDF increases the operational efficiency of dairy processing plants and maintains dairy institutions. It helps rural milk producers by increasing their opportunities for ownership, market participation, and management within the organized milk sector.
The Multiplier Grants Scheme (MGS) is a scheme developed by the Department of Electronics and Information Technology. It focuses on encouraging collaborative research and development (R&D) partnerships products and services between industry and academic R&D institutions. The government will provide financial support up to twice the amount in case of industry supports R&D for developing products. Thus, the industry and institutions need to submit combined proposals for financial assistance under the initiative.
ASPIRE, means A Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship. It is a scheme established by the government of India that supports entrepreneurship in rural areas. It aims to establish a network of technology and incubation centers. It generally focuses on entrepreneurship and increasing innovative startups within the agricultural industry. It aims to create jobs by establishing micro-enterprises in the agro-rural sector. It helps to reduce unemployment by providing training in new technologies.
Conclusion
The government of India established a Startup India Scheme powered by DPIIT (Department for Promotion of Industry and Internal Trade). The Indian government schemes focus on encouraging innovation, entrepreneurship, and economic growth for startups. The above-mentioned government schemes for startups are essential for providing job opportunities, financial assistance, and innovation to entrepreneurs. Overall, these government schemes help to establish India by encouraging sustainable practices and providing support to startup businesses to know more visit Online Legal India.
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