India has built an excellent foundation for businesses and entrepreneurs, propelling it to the forefront of the global startup scene. As a result, India is currently known as the “startup hub,” ranking third in the world with 90,000 “Start-Ups” and 107 unicorn businesses worth $30 billion. The government created and promoted the Startup India Initiative under Prime Minister Narendra Modi’s leadership in order to support young businesses.
It also developed several initiatives that educate as well as give technical help, monetary help, subsidies, and other services to aspiring entrepreneurs in order to fuel their growth and establish their market presence. With government assistance, these businesses may also gain global recognition and draw the attention of foreign investors.
Various Government Initiatives For Startups
Single Point Registration Scheme
The National Small Industries Corporation (NSIC) looks after the Single Point Registration Scheme (SPRS) for assisting and helping the MSE with the ultimate goal of increasing purchases from the small-scale sector. MSEs must register with NSIC under this plan in order to be excluded from paying the EMD (Earnest Money Deposit). Other advantages include free tender, tender participation, procurement from MSEs, and many more. The government has also mandated at least 25% of total yearly purchases be made from MSEs.
High-Risk And High-Reward Research
The government’s goal with High-Risk And High-Reward Research is to encourage and promote creative, riskier ideas that can have a larger influence on science and technology. Such ventures if in the near future gets successful then they would be extremely profitable in the area of research. There is no set budget for these projects apart from overhead funding, the research grant will cover travel expenses, consumables, contingencies, equipment, and so on. The government provides a valuable helping hand and encouragement for three years, which can also be extended to five years in exceptional situations.
Zero Defect Zero Effect Scheme
The Indian Government in the year 2016 launched the Zero Defect Zero Effect (ZED) scheme to encourage MSMEs to assess their businesses for ZED and to support them by providing manufacturing efficiency, production efficiency, financial efficiency, better human resources, energy-saving methods, product designs, and much more.
Dairy Entrepreneurship Development Scheme
The Dairy Entrepreneurship Development Scheme plan was developed and launched by the Department of Animal Husbandry, Fisheries, and Dairying with the aim and goal of creating self-employment in the dairy sector. The stages of milk production, procurement, processing, preservation, transportation, and marketing are among the various activities that are included. The government also provides back-end finance for bankable projects worth 25% of the total project cost for applicants in the general category and 33.33% for farmers in the SC/ST category under this plan.
Credit Guarantee Fund Trust for Micro and Small Enterprises
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was launched and developed by the Ministry of MSME and the Small Industries Development Bank of India to enhance the credit delivery system and promote the easy and flexible credit flow in the MSE sector. The government gives loans to small-scale companies and micro-level firms at very nominal or subsidized rates and with no collateral under the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme. The government provides fund and non-fund credit facilities of up to Rs. 200 lakhs to each qualifying borrower, with money disbursed by the SIDBI.
Multiplier Grant Scheme
The Multiplier Grant Scheme (MGS) was established by the Department of Electronics and Information Technology to encourage collaborative research and development among enterprises which helps in the expansion of goods and services. Government grants are limited to a maximum of 2 crore per project with a tenure of less than two years under this plan.