Top 5 Government Schemes To Support Your Startup in India

The Government of India's flagship programme, Startup India, aims to actively encourage startups and business owners. The program's main goal is to build a robust environment in India that supports and fosters innovation and entrepreneurs, ultimately creating a huge number of job opportunities and fostering the nation's sustainable economic growth. The Aatmanirbhar Bharat mission and the "Make in India" programme were subsequently introduced by the Indian government with the goal of establishing India as a centre for international manufacturing and design exports.

Today, India takes pride in having the third-largest startup environment worldwide. There are more than 60,000 companies working in the nation, and there are over 100 unicorns. This achievement may be partially due to the active assistance given by the Indian government through its numerous programmes and plans to startups and entrepreneurs. All of the aforementioned initiatives were supported by a number of government initiatives and resources aimed at giving businesses financial support and working capital. For instance, the Startup India Action Plan entitles entrepreneurs to a number of perks, such as tax incentives and exemptions, loans with lower interest rates, skill development programmes, priority in public procurement, etc.

  1. ASPIRE – A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship

With the aim of promoting innovation for unmet societal needs in the agro-business sector and accelerating entrepreneurship, this initiative was created to establish a network of technology centers and incubation centers across India. By way of a one-time grant of 100% (hundred percent) of the cost of plant & machinery (aside from land and infrastructure), it offers financial assistance for the establishment of livelihood business incubators and/or technology business incubators, whichever is less.

Many people in India still rely on agriculture as a source of income, and a sizeable section of the population lives in rural regions. As a result, this programme was started with the intention of creating jobs and building businesses in the agriculture sector. It equips company owners with the information they need to launch their own enterprises, become employers, and guarantee their sustainability. This programme aims to promote economic development at the district level from the ground up.

  1. Pradhan Mantri Mudra Yojana

Micro Units Development and Refinance Agency Ltd. ("MUDRA") is a non-banking financial institution that promotes the growth of the micro enterprise sector in India under this programme. MUDRA provides banks and/or microfinance institutions with refinancing help in order to lend to micro units with credit requirements up to INR 10 (Indian rupee ten) lakhs. Depending on the stage of growth, the need for finance, the age of the firm, and the amount of loan that may be obtained by these enterprises, the loans have been categorized into the categories of Tarun, Kishore, and Shishu. No collateral security is required for these assets, and small firms that are neither corporations or farms are eligible to get loans up to INR 10 lakhs. This loan is granted for a variety of activities which provide income generation and employment creation. It is mostly offered to street vendors, store owners, traders, and other service providers. Additionally, working capital, travel vehicle, and working capital loans are offered. Thus, it is a unique scheme that is devised to empower Indian entrepreneurs.

  1. Extra Mural Research or Core Research Grant (CRG)

Earlier known as the Extramural Research financing system, CRG. Even though it was started more than 40 years ago, with the creation of the Science and Engineering Research Board ("SERB"), it is still one of the most important and practical programmes. The goal of CRG is to assist academic institutions, research institutes, and other R&D organizations in doing research in all cutting-edge areas of science and engineering. As a result, it motivates both established and up-and-coming researchers to use a competitive individual-centric financing model.

  1. Zero Defect Zero Effect (ZED) scheme

As the name implies, this purpose is to inspire manufacturers to produce better goods that are high-quality, defect-free, and reliable. It is a handholding programme that offers MSMEs the chance to adopt cutting-edge production techniques, utilize cutting-edge technology, and constantly enhance their goods. To ensure that their products have no faults, the programme offers startups and MSMEs tools, technology, as well as financial aid. Additionally, ZED provides a comprehensive certification, evaluates businesses for ZED, and aids companies in moving along the maturity evaluation model of the programme.

  1. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

The Ministry of MSME, the Government of India, and the Small Industries Development Bank of India ("SIDBI") formed the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to carry out the Credit Guarantee Fund Scheme for Micro and Small Enterprises ("MSE"). The MSE sector's credit flow is facilitated by this plan, which also enhances the credit delivery system. It offers start-ups, small businesses, and micro-level enterprises loans at significantly reduced rates and with no required collateral. The SIDBI distributes the money under the plan, which provides fund- and non-fund-based loan facilities up to Rs. 200 lakhs for each qualified borrower. The programme is aimed for manufacturing or service enterprises, and the loan may be obtained as a term loan or working capital.

These schemes serve a twofold purpose: they support and benefit the existing startups and businesses while also inspiring and encouraging budding entrepreneurs, students, and leaders from every domain to launch their own businesses and take another step towards an Aatmanirbhar Bharat. The vision is to enable the talent of India to dream of new ideas, implement them and ultimately, convert them into a successful and thriving business.

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