With over 4,000 startups rising in the Indian Market, the Government is set to promote and boost this sector. India has became the third country after USA and Britain to have the highest number of startups in the world. With giants like Flipkart, Snapdeal, Quickr, Ola, and more India has its own club of Billion Dollar companies. But, now, the Government is all set to give a major boost those rising sectors and ventures which will become the Giants of tomorrow.
Taking this in notice, the Government has launched the Startup India Action plan in 2016. Since then, over 50+ schemes have been launched under various departments and ministries to help these upcoming startups. Women, Backward Classes, Agriculture and Technology has been given special regard under these schemes. These schemes have been highly successful in bringing up ventures and enterprises on a firm ground. The Government is doing all it can to promote this startup culture in India, making things easier for a new venture to make its place in the market.
Following are some of the Schemes launched by Government of India to help entrepreneurs and their enterprises.
Government Schemes To Promote Startups in India
- StandUp India Scheme
In an attempt to promote women and SC/ST in entrepreneurship, the Department of Financial Services with the Government of India has launched the Standup India Scheme. The scheme aims to provide loans to Women Entrepreneurs and entrepreneurs from the SC/ST community from 10 Lakh to 1 Crore. The scheme also provides loans to Greed Field Enterprises in trading, manufacturing and service sectors.
The Banks are required to provide to Loans to at least One women entrepreneur and one from the SC/ST community. The Woman, in case of a non-individual enterprise, should be 51% stakes holder to be eligible under the StanUp India Scheme. A composite loan from 10 Lakh to 1 Crore is given under this scheme. The loan amount should be 75% of the total project cost including term loans and working capital. The rate of interest at which the loan will be given will be the lowest of that bank for that category. The scheme will help women and SC/ST entrepreneurs to secure a faster and subsidized loan for their startups.
The Micro Units Development and Refinance Agency is launched by the Government of India to provide loans to Micro and Small Enterprises, giving them financial aid and facilitate funding. The loans are given to the Micro and Small ventures up to 5 lakh without any collateral.
The scheme focuses on business ventures, traders, shopkeepers, service sectors, transport vehicle loans and other micro and small enterprises.
The loan under MUDRA is given in three types of Incentives. Shishu Loans cover up to Rs. 50, 000; Kishor Loans cover from Rs. 50,000 to Rs. 5 Lakh; Tarun Loans cover from 5 Lakh- 10 Lakh.
- Credit Guarantee Scheme
The Credit Guarantee Fund Trust for Micro and Small Enterprise. The loans will be provided at zero collateral at subsidized rates. The scheme was launched to promote and give financial support to budding startups in India. The loans will help startups get the required funding faster and will give thee startups a big boost. No collateral or security of any type will be required for these loans. The scheme was launched with SIDBI where loans up to 100 Lakh will be provided at highly subsidized rates to Micro and Small ventures.
- Venture Capital Scheme
The Ministry of Agriculture and Farmers Welfare launched the Venture Capital Assistance Scheme that provides Interest-Free Loans to farmers. Producer group companies, agricultural enterprises, units of agro-export and partnership firms. The Loans will be facilitated by SFAC and will cover the additional funding requires by such enterprises in setting up their projects. The government is set to promote and assist startups in the Agricultural Sector to help upcoming enterprises in this sector.
The ASPIRE scheme strives to set up Incubation centers that will help promote and accelerate entrepreneurship in the country. Furthermore, the scheme focuses on promoting enterprises and startups in the Agricultural Sector, increase job opportunites and reduce unemployment. The ASPIRE scheme seeks to promote the starup culture of the country by facilitating innvative business solutions. A network of Technology centres and business incubation centres were set up to support upcoming Startups in agriculture and other Small and Micro Ventures.
In addition to this, the goverment under the ASPIRE scheme is set to assist and support budding Entrepreneurs by providing them with skill training, workshops and help the setting up of the business venture.
- ATAL Incubation Centres
The Atal Incubtion Centres Scheme is a part of Atal Innovation mission whihc attempts to promote the entrepreneurship in MSME sector. It was a Scheme launched by NITI Aayog to provide financial aid to the upcoming MSME sector startups. Under this scheme, Incubation Centres will be set up across india to help upcoming entrepreneurs set up ther ventures under this.
The scheme provides an aid of 10 Crore to each Atal Incubation centre granted for five years. ASPIRE provides financial and infrastructural aid to ventures in Chemical, technology, FinTech, healthcare, renewable energy, green technology, IoT, nanotechnology and other industries. Training workshops are organised and the ventures are provided with necessary infrastructure and research facility to give these startups a major boost.
So, these were some of the best schemes that has helped budding startups in India to grow faster and facilitated their financial needs. There are over 50 schemes that have been launched by Government of India for various sectors, giving them a boost in the Indian Market. Stay connected for more!