Have you ever had a million-dollar business idea but got immediately discouraged due to a lack of a reliable source of funds? If you're nodding 'Yes', the Indian government has a solution to your problem. Enter Startup India, a government initiative designed to foster and accelerate the growth of the startup culture — to fuel innovation across our country.
In this blog, we discover the top 10 startup schemes in India.
How Does a Government Startup India Scheme Work?
Established in 2016, Startup India aims to financially assist aspiring entrepreneurs — after they've gained approval from the Department for Industrial Policy and Promotion.
Powered by the DPIIT, the Startup India Scheme offers financial aid as loans and subsidies to potential business owners and organisations. Thereby further increasing job possibilities and producing wealth within the Indian economy.
List of Top 10 Government Startup Schemes in India
1. Atal Innovation Mission (AIM)
In 2016, NITI Aayog launched this Startup India Scheme, Atal Innovation Mission. The organisation has established this scheme to foster innovation by creating new programmes and policies to support development in several economic areas.
This government startup scheme provides a forum for the cooperation of many players in the entrepreneurial sector.
Under this startup scheme, AIM grants approx ₹10 Crores financing to the chosen firms over five years. Emerging organisations in health, agriculture, transportation, education, etc., can apply for this scheme.
With a total budget of ₹945 Crores, it would finance 3600 businesses and 300 incubators.
The chosen entrepreneurs under this government startup scheme will receive up to ₹5 Crores in funding.
Startups will get grants of up to ₹20 Lakhs for developing concepts or demonstrations and up to ₹50 Lakhs for growing their goods or services.
3. Startup India Initiative
As of June 2021, over 50,000 firms have been recognised via this startup scheme in India, which provides tax benefits to entrepreneurs for a little more than five years. Additionally, it created 5.5L jobs too.
Within this government startup scheme, the maximum age for most eligible startups is now 7 years & for biotechnology companies is 10 years from the date of establishment.
Its numerous benefits make it among the most incredible government-sponsored Startup India Scheme for business owners.
4. Aatmanirbhar Bharat App Innovation Challenge
Introduced in July 2020, this government startup scheme encouraged Indian startups to collaborate and create solutions made in India — for the benefit of those in the country and worldwide.
It also urged tech and startup firms to produce cutting-edge mobile applications for a big cash prize.
Apps like Chingari (TikTok equivalent), YourQuote (a writing app), and Koo (Twitter equivalent), were crowned first (₹20L), second (₹15L) & third (₹10L) respectively.
5. eBiz Portal
eBiz is the first online forum for government-to-business collaboration (G2B). Created by Infosys, this helped modernise the nation and 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. Gradually, the government intends to expand the scheme's services over time.
6. Software Technology Park (STP)
The Software Technology Park (STP) is a system that is 100% export-oriented to increase and export computer software and technical services via physical media or communications infrastructure.
Focusing 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) and the suggestion of Science Parks or Technology Parks, which are currently in use worldwide.
7. Dairy Processing and Infrastructure Development Fund (DIDF)
It helps dairy cooperatives maintain their competitive edge for the long-term benefit of farmers.
The government announced the creation of the Dairy Processing and Infrastructure Development Fund with a total system expenditure of ₹11,184 Crores.
Milk-producing businesses, multi-state milk cooperatives, state dairy federations, NDDB subsidiaries, and so on are eligible for this scheme.
The MUDRA banks offered loans for small businesses that aren't farms, microenterprises, or corporations in the amount of up to ₹10 Lakhs. The loan categories are called Tarun, Shishu, and Kishor.
9. Credit Guarantee Fund Trust for Micro and Small Enterprises
The CGTMSE Startup India Scheme offers zero-collateral business loans to MSME firms, amongst other loans.
The goal is to allow businesses to acquire loans at heavily discounted interest rates without requiring collateral.
To promote new enterprises and revitalise 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.
10. Multiplier Grants Scheme (MGS)
The Multiplier Grants Scheme (MGS), developed by the Department of Electronics and Information Technology, encourages research and development (R&D) partnerships between academics or institutions and the tech industry.
The goal for this scheme is to promote and stimulate the development of indigenous products and services.
Under this scheme, the government may give up to ₹2 Crore 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 Crore over three years.
Startup India, a government initiative, serves as a vital catalyst for fostering the growth of the startup culture and building an inclusive ecosystem for innovation and entrepreneurship in India. With various schemes and financial assistance provided to aspiring entrepreneurs, it aims to generate wealth and increase job opportunities within the Indian economy.
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Frequently Asked Questions
1. Which is the best startup in India?
Several startups are launched in India daily. Since each firm has unique strengths and excels in a specific industry, picking out one as the finest is impossible. However, you may analyse some characteristics, like its monthly/annual revenue and workplace culture, among others, to identify a good company.
2. How do startups make money?
When a properly planned business gets launched, it will almost always lead to profits. Along with this, the location and management of the startup also play a vital role in its success. If initiatives like Startup India can boost its progress, success may come sooner too.
3. What is a Startup India scheme?
It's a government scheme to empower budding businesses in India & build a startup culture alongside an inclusive ecosystem for innovation and entrepreneurship.
4. Who is eligible for a Startup India scheme?
There are several factors to be eligible for any Startup India Scheme.
Here are a few:
1. One needs to be above 18 years of age
2. Their company must be either a private limited one or a partnership
Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.