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9 Government Schemes to Boost Entrepreneurship in India
India is one of the fastest growing startup ecosystems in the world. However, it is still lagging behind many other countries. According to a recent global ranking index of 125 countries on their startup ecosystem released by Startupblink, India stands at 37th position and lags behind its other Asian counterparts such as China, Singapore, Japan and South Korea.
The good news is that startup momentum is going strong in India and there can’t be a better time to become an entrepreneur. If you are planning to launch your startup, then you must be aware of various government schemes that promote entrepreneurship at every level. More than ever before, there are numerous supportive schemes for startups. So, you can take advantage of various government-run schemes to boost your new venture.
Here you will find useful information regarding nine such schemes that encourage entrepreneurship in India.
Multiple Grants Scheme (MGS)
Headed by Department of Electronics and Information Technology (DeITY), this scheme is applicable to the startups in IT industry. It provides a maximum fund of Rs2 crores for a project the duration of which should be less than two years. IT professionals who are seeking funds for their business can take this scheme into consideration. It bridges the gap between R&D, Proof of Concept and Commercialization.
Credit Guarantee
This scheme has been introduced for the benefit of micro and small enterprises. It provides working capital facility and/or term loans up to 100 lakh per borrowing unit. It is touted as the loan lifeline for startups because they can borrow loans without collateral.
Aspire – Scheme for Promotion of Innovation, Entrepreneurship and Agro-industry
Another beneficial scheme for entrepreneurs, it is headed by MSME Steering Committee. This scheme promotes entrepreneurship in agriculture, pets and animals, healthcare and life sciences and provides funds depending on the nature of the incubator’s existence. So, if you are running a startup in any of these fields, this scheme is a great resource.
Electronic Development Fund Policy (EDFP)
Introduced by Department of Electronics and Information Technology (DeITY), the EDFP is available for startups that are innovating in electronics, nanoelectronics and IT. Its daughter funds provide risk capital as per their requirement.
Raw Material Assistance
Another helpful scheme for MSMEs, this scheme is headed by NSIC (National Small Industries Corporation) and provides fiscal support to procure raw material. Manufacturers are helped for bulk purchase, cash discount and lower interest rates for initial months of startups. For instance, for a period of 90 days, the financial assistance is provided which can be returned even after 270 days with an interest rate of 9-10%.
Infrastructure Development Scheme
Launched by NSIC again, you can get office space allotted for your startup. To be eligible, it has to be IT/ITES/MSME unit and it should not be already registered in the Software Technology Parks of India Scheme. Your startup must fulfil all the criteria set for MSME by the ministry. The space is available in New Delhi, Chennai and Hyderabad and is given on a lease rental system. The shops are of varying sizes and depositors have to pay six months’ rent without interest as security which is refundable at the time of vacation.
Bank Credit Facilitation Scheme
If you are planning how to be an entrepreneur in India, you must know about the Bank Credit Facilitation Scheme headed by the NSIC. Through its MOU with various banks, the NSIC gets loans for startups (MSME units) without any additional costs. Five to seven years is the standard repayment period depending on the profits generated by the startup. But, in exceptional cases, it can also extend up to eleven years.
Atal Innovation Centres
Headed by the Atal Innovation Mission, this scheme is applicable to startups in a variety of sectors like healthcare, agriculture, aeronautics, chemicals, Internet of things, F & B, and many more. The NITI Aayog supports startups in their incubation and helps them to flourish by providing infrastructure and financial support of Rs10 crores to each unit wherein the office space of 10,000 sq feet has to be provided by the owner.
Dairy Entrepreneurship Development Scheme
Dairy is an important sector of the agricultural industry. There are several entrepreneurs who are facilitating the dairy industry with innovative technology and reaching out to rural areas. With an aim to provide support to the village level businessmen in the unorganised dairy sector, this scheme has been launched to provide financial support of around 25% of the total cost to establish milk production units who want to grow commercially.
These nine schemes are the just the tip of the iceberg. There are many more with which the Indian government is trying to woo entrepreneurs and encourage their ventures. Depending on your business plans and size, you can take advantage of such schemes and flourish as an entrepreneur.
However, if you are a newbie in the startup world, then it is advisable to enrol for courses that guide you on how to be an entrepreneur in India. Once you get the base knowledge of entrepreneurship in place, you can benefit from these schemes with more clarity.
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