Have you always wanted to establish your own business but have been prohibited from doing so due to a lack of funding? Don't worry, the Indian government has introduced the Startup India Scheme to help entrepreneurs cope with situations like these.
The Startup India scheme was established in 2016 by the Indian government with the aim of providing financial assistance to aspiring businesspersons. Start-up India Scheme offers different financial aid in the form of loans and subsidies to potential business owners and organisations, further increasing job possibilities and producing wealth in the Indian economy.
Let’s understand more about the top 10 Start-up India Schemes.
This program was introduced on July 4th, 2020. With this introduction, Prime Minister Narendra Modi encouraged Indian startups to collaborate and create "Made in India" solutions that would benefit not just the people of India but also the rest of the globe. PM also urged the whole tech and startup firms to participate in the challenge by creating cutting-edge mobile applications.
The Atal Innovation Initiative (AIM), a project of Niti Aayog, and the Ministry of Electronics and IT jointly announced the competition as part of the Digital India mission. The winning company/app received ₹20 Lakhs, while those who came second and third won ₹15 Lakhs and ₹10 Lakhs, respectively.
In 2016, NITI Aayog launched this Start-up India Scheme. Atal Innovation Mission aims to advance India's entrepreneurial and innovative culture. This scheme has been established to foster innovation by creating new programs and policies to support development in several economic areas. It provides a forum for the cooperation of many players in the entrepreneurial sector.
Under this scheme, ₹10 Crores financing is granted to the chosen firms over a five-year period. Emerging organisations in the fields of health, agriculture, transportation, education, etc. are eligible to apply for this scheme.
The government of India introduced the Startup India Seed Fund Scheme on January 16, 2021, for relatively early-stage enterprises. The Indian government allotted a total budget of ₹945 Crores. It was anticipated that it would provide financing to 3600 businesses and 300 incubators.
The chosen entrepreneurs will receive up to ₹5 Crores funding. Startups will be given grants of up to ₹20 Lakhs for developing concepts or demonstrations and up to ₹50 Lakhs for growing their goods or services.
On January 16, 2016, the Prime Minister officially unveiled the Startup India Initiative. As of June 3, 2021, over 50,000 firms have been recognised via this plan, which provides tax benefits to entrepreneurs over the course of a little more than five years.
Additionally, the maximum age for startups has been increased from two to seven years. Furthermore, the age restriction for biotechnology companies is 10 years from the date of establishment. Given its numerous benefits, it is among the greatest government-sponsored Start up India Scheme for business owners.
This is the first online forum for government-to-business collaboration (G2B), which has been launched to modernise the nation and provide a welcoming online environment for businesses. The public-private collaboration was used to establish the eBiz Portal, which was created by Infosys. It serves as a focal point for communication for all business investors and entrepreneurs in India. This platform has introduced 29 services in five separate Indian states: New Delhi, Tamil Nadu, Andhra Pradesh, Haryana, and Maharashtra. The government intends to gradually expand the scheme's service over time.
The Software Technology Park (STP) is a system that is 100% export-oriented with the goal of increasing and exporting computer software and technical services via physical media or communications infrastructure. The single focus on one business or product, notably computer software, makes the course material distinctive. The initiative of the government's program includes the idea of Export Processing Zones (EPZ), as well as the suggestion of Science Parks or Technology Parks, which are currently in use across the world.
In order to ensure that dairy cooperatives maintain their competitive edge for the long-term benefit of farmers, the Indian government announced the creation of the Dairy Processing and Infrastructure Development Fund with a total system expenditure of₹11,184 Crores for execution during the year 2018-19 to 2022-23.
Milk-producing businesses, multi-state milk cooperatives, state dairy federations, NDDB subsidiaries, and so on are eligible for this scheme.
The Micro Units Development Refinance Agency (MUDRA) was established to enhance the availability of loans and promote the growth of small businesses in rural regions. The primary goal of developing this program was to assist Indian small businesses that desire to grow. The MUDRA banks were in charge of offering loans for small businesses that aren't farms, microenterprises, or corporations in the amount of up to ₹10 Lakhs. The loans have been divided into Tarun, Shishu, and Kishor categories.
The CGTMSE Start up India Scheme has been formed to offer loans, such as zero-collateral business loans, to MSME firms. The goal is to provide an opportunity for businesses to acquire loans at heavily discounted interest rates without the requirement for collateral. With the objective of promoting new enterprises and revitalising existing ones, the government has planned to work in conjunction with the SIDBI (Small Industries Development Bank of India) to grant a maximum sum of ₹100 Lakhs.
The Multiplier Grants Scheme (MGS) was developed by the Department of Electronics and Information Technology to encourage research and development (R&D) partnerships between academics or institutions and industry for the production of a product or service. MGS promotes and stimulates the development of indigenous products and services. Under this scheme, the government may give up to ₹2 Crores financing to each project, and each project's term is expected to be fewer than two years. The cost for industrial organisations will be ₹4 Crores over a three-year period.
India is about to enter the era of the best entrepreneurs and the pinnacle of business. The government has introduced these schemes to inspire aspiring business people, startups, and students across all academic disciplines to go on with the Atmanirbhar Bharat vision. These programs have been put in place to help the Indian startup ecosystem grow.
Apart from these schemes, you may also invest in mutual funds or other schemes to earn an additional income or to receive other benefits. With the Fi app, you can invest in Mutual Funds and enjoy a seamless personal finance experience.
Several startups are being launched in India daily. Since each firm has unique strengths and excels in a certain industry, it is impossible to pick out one as the finest. However, you may analyse a number of characteristics, like its monthly/annual revenue and workplace culture, among others, to identify a good company.
If the business is launched with proper planning, it will never disappoint you in terms of profits. Along with this, the location and management of the startup also play a vital role in its success. Hence, all aspects should be given the same importance in order to make the business successful.
The Startup India Scheme was announced by India's Prime Minister Narendra Modi was 15th August 2015 to empower budding businesses in India. It is the flagship initiative of the Government of India, intended to build startup culture and an inclusive ecosystem for innovation and entrepreneurship in India.
To be eligible for the Startup India Scheme, one needs to be above 18 years of age and their company must be either a private limited one or a partnership. The yearly turnover has to be 25 crores for a company to be eligible as well.