Top 7 Government Schemes for Start-ups in India
Indigenous Startups form the cornerstone of India's vision for an "Atma Nirbhar Bharat" (self-reliant India). To drive this vision, the Indian government has established various programs and funds,
Indigenous Startups form the cornerstone of India's vision for an "Atma Nirbhar Bharat" (self-reliant India). To drive this vision, the Indian government has established various programs and funds, each catering to Startups in various sectors.
These government-backed initiatives are built strategically to provide Startups with the necessary tools, including technical mentorship, financial incentives, and an assortment of services, enabling them to not only flourish but also to compete on a global scale.
With a thriving landscape boasting nearly 100,000+ Startups and a remarkable 111 Unicorns, India's journey toward self-reliance is undeniably taking shape. For entrepreneurs, this compilation of the Top 7 list of Government Schemes for Start-ups in India serves as an invaluable resource.
As an attempt to strengthen India's Startup Ecosystem, Prime Minister Narendra Modi instated the 'Startup India Seed Fund' on January 16, 2021, addressing the crucial need for early-stage financial backing.
The scheme, managed by the Department for Promotion of Industry and Internal Trade (DPIIT), boasts a substantial budget of INR 945 crore and is intended to nurture 3,600 Startups and 300 incubators over the next four years. Eligible Startups, recognized by DPIIT and incorporated within the last two years, can access up to ₹5 crore in funding.
This initiative prioritizes technology-driven solutions, offering grants of up to ₹20 lakhs for concept development and ₹50 lakhs for product/service expansion. The emphasis on sectors like waste management and healthcare reflects the scheme's broad-reaching vision. Aspiring entrepreneurs now have a vital lifeline that makes sure they can get capital during their early stages of growth.
Launched by the Prime Minister of India in April 2015, the Pradhan Mantri Mudra Yojana (PMMY) is a Government initiative aimed at facilitating financial support to micro-enterprises. The scheme focuses on promoting entrepreneurship and generating employment by providing loans up to ₹10 Lakhs to non-corporate, non-farm small/micro-enterprises.
Categorized into three stages - Shishu, Kishor, and Tarun - based on the business's growth stage, PMMY extends financial inclusivity, especially to women and marginalized communities.
The term “Mudra” is an acronym for “Micro Units Development and Refinance Agency Ltd.” Intending to empower the grassroots economy, the scheme has been instrumental in fostering small business growth, driving economic self-sufficiency, and reducing unemployment across India.
3. Atal Innovation Mission (AIM)
The Atal Innovation Mission (AIM) is a flagship initiative by the Indian government to encourage and reinforce creativity and problem-solving, AIM focuses on various components, including the establishment of Atal Tinkering Labs (ATLs) in schools, Atal Incubation Centers (AICs), and Atal Community Innovation Centers (ACICs).
ATLs, located in educational institutions, provide students with hands-on experience in tinkering and innovation, nurturing a practical understanding of STEM concepts. AICs support Startups by offering access to state-of-the-art facilities, mentorship, funding, and a conducive environment for growth.
ACICs, on the other hand, bring innovation to grassroots levels, empowering communities to address local challenges. Through this initiative, the government gently nudges the nation towards a future where every problem has a creative solution.
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4. Technology Incubation and Development of Entrepreneurs (TIDE)
The Technology Incubation and Development of Entrepreneurs (TIDE) is a pivotal scheme under the Ministry of Electronics and Information Technology in India. Functioning as a technology incubator, TIDE is designed to cater to Startups engaged in the development of technology-based products and services.
This initiative provides essential support in the form of financial assistance and infrastructure facilities, fostering an environment conducive to innovation. Monetary compensation under TIDE varies based on the specific needs and developmental stage of the Startup.
Financial aid is allocated to cover crucial aspects such as prototype development, research, and initial business operations.
The National Initiative for Developing and Harnessing Innovations (NIDHI) is a financial scheme operated by the Department of Science and Technology in India. By functioning as an innovation-driven initiative, NIDHI is designed to provide all-round support to Startups in their early stages, emphasizing the transformation of innovative ideas into sustainable and scalable businesses.
NIDHI serves as a facilitator, offering financial assistance, mentorship, and infrastructure support to Startups across diverse sectors. The scheme aims to nurture the spirit of innovation by fostering a conducive ecosystem that enables Startups to flourish.
By emphasizing collaboration between academia, R&D institutions, and industry, NIDHI strives to catalyze the growth of Startups, ensuring they have the necessary resources to navigate the challenging early phases of business development.
The Stand-Up India Scheme is a transformative government initiative fostering financial inclusion and diversity in entrepreneurship. Specifically targeting individuals from marginalized communities and women, the scheme offers bank loans ranging from ₹10 lakhs to ₹1 crore.
The Stand-up India Scheme takes a sector-agnostic approach and accommodates businesses in trading, manufacturing, and services, allowing entrepreneurs to explore diverse domains.
With a focus on greenfield enterprises, the scheme stimulates innovation and fresh economic activity, aligning with the Government's vision for a dynamic Entrepreneurial Ecosystem.
Stand-Up India also places a strong emphasis on gender inclusivity, ensuring equal access to financial resources for women entrepreneurs. In essence, this scheme emerges as a crucial catalyst for Startup growth, offering essential support and opportunities to a diverse range of Entrepreneurs.
Promoting innovations in individuals, Startups, and micro, small, and medium enterprises (MSMEs) is required to strategically encourage economic growth and technological advancement.
PRISM is one of the most recently launched central government schemes for Startups in 2021. Recognizing the importance of innovation in driving competitiveness, governments worldwide are implementing initiatives to speed up innovation.
Considering Startups as the hotbeds of innovation, they drive economic dynamism and job creation. Various Government Schemes and incubation programs offer essential support, including funding, mentorship, and infrastructure, increasing the innovative spirit within Startups.
In the MSME sector, new ideas are very important for staying competitive and long-lasting. Government policies often incentivize research and development, encouraging MSMEs to adopt cutting-edge technologies and processes.
The benefits of Government Schemes for Startups and small businesses in India extend beyond mere financial support, serving as catalysts for motivation and recognition. By offering a range of benefits, from financial aid to mentorship, these schemes empower Startups to achieve significant milestones.
With India now boasting the third-highest number of Startups globally, these Government initiatives align seamlessly with the vision of an "Atmanirbhar Bharat," as the nation rapidly moves toward the goal of self-reliance and innovation-led economic development.