Are you an entrepreneur in India looking for financial assistance and support to start your own business? If yes, then you’re in luck! The Indian government has launched various schemes and initiatives to support startups in the country. These schemes provide funding, mentorship, and other necessary resources to help startups flourish and become successful.
In this article, we will discuss the various Indian government schemes for startups, their eligibility criteria, and the benefits they offer.
Introduction to Indian Government Schemes for Startups
The Indian startup ecosystem has grown rapidly in recent years, and the government has taken several steps to encourage and support entrepreneurship. The government schemes for startups aim to provide financial assistance and other resources to entrepreneurs to start and scale their businesses.
The schemes cover various areas, such as funding, mentorship, incubation, skill development, and more. The government has also set up institutions such as Startup India, Atal Innovation Mission, and Stand-Up India to promote and support the startup ecosystem in the country.
Let’s take a closer look at some of the popular Indian government schemes for startups:
1. Startup India
Startup India is an initiative launched by the Indian government to promote entrepreneurship and innovation in the country. The scheme provides various benefits to startups, such as:
- Tax exemptions for three consecutive years
- Self-certification compliance
- Easy exit policy
- Funding support through a fund of funds with a corpus of INR 10,000 crore
- Credit guarantee fund for startups
- Incubation and mentorship support
- Fast-track patent application processing
To be eligible for the scheme, the startup should be registered as a Private Limited Company, Partnership Firm, or Limited Liability Partnership. The startup should also have a turnover of less than INR 100 crore and should not be more than ten years old.
2. Atal Innovation Mission (AIM)
Atal Innovation Mission is a flagship initiative of the Indian government that promotes innovation and entrepreneurship among students, entrepreneurs, and startups. The scheme provides various benefits to startups, such as:
- Incubation support
- Seed funding of up to INR 1 crore
- Mentorship and networking opportunities
- Access to labs and equipment
- Patent filing support
- Business support services
To be eligible for the scheme, the startup should be registered in India and should have a unique business idea that has the potential for commercialization.
3. Stand-Up India
Stand-Up India is a scheme launched by the Indian government to promote entrepreneurship among women and marginalized communities. The scheme provides various benefits to startups, such as:
- Loans ranging from INR 10 lakh to INR 1 crore
- Concessionary loans with lower interest rates
- Credit guarantee scheme for loans up to INR 1 crore
- Incubation and mentorship support
To be eligible for the scheme, the startup should be owned and operated by a woman entrepreneur or a person belonging to a marginalized community. The startup should also be engaged in manufacturing, trading, or services sector.
4. Pradhan Mantri Mudra Yojana (PMMY)
Pradhan Mantri Mudra Yojana is a scheme launched by the Indian government to provide financial assistance to micro and small enterprises in the country. The scheme provides loans of up to INR 10 lakh to startups and small businesses. The loans are provided by various banks and financial institutions under the scheme.
To be eligible for the scheme, the startup should be engaged in manufacturing, trading, or services sector and should have a turnover of less than INR 5 crore.
5. National Small Industries Corporation (NSIC)
The National Small Industries Corporation is a scheme launched by the Indian government to promote and support small-scale industries and startups. The scheme provides various benefits to startups, such as:
- Raw material assistance
- Marketing assistance
- Technology upgradation support
- Export promotion support
- Incubation and training support
To be eligible for the scheme, the startup should be registered as a Micro, Small, or Medium Enterprise (MSME) and should have a valid Udyog Aadhaar Number.
6. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The Credit Guarantee Fund Trust for Micro and Small Enterprises is a scheme launched by the Indian government to provide collateral-free credit to MSMEs and startups. The scheme provides credit guarantee cover of up to 75% to banks and financial institutions for loans up to INR 2 crore.
To be eligible for the scheme, the startup should be registered as an MSME and should have a valid Udyog Aadhaar Number.
Conclusion
The Indian government has taken several steps to promote and support entrepreneurship in the country. The various government schemes for startups provide financial assistance, mentorship, incubation, and other necessary resources to help startups grow and succeed.
Entrepreneurs can take advantage of these schemes to start and scale their businesses and contribute to the growth of the Indian economy.
So, if you’re an aspiring entrepreneur, explore these schemes and see which one fits your business idea and requirements the best.
Indian Government Schemes for Startups: FAQs
What is the eligibility criteria for Startup India scheme?
The startup should be registered as a Private Limited Company, Partnership Firm, or Limited Liability Partnership. The startup should also have a turnover of less than INR 100 crore and should not be more than ten years old.
What is the maximum loan amount that can be availed under Stand-Up India scheme?
Loans ranging from INR 10 lakh to INR 1 crore can be availed under Stand-Up India scheme.
What is the eligibility criteria for Pradhan Mantri Mudra Yojana?
The startup should be engaged in manufacturing, trading, or services sector and should have a turnover of less than INR 5 crore.
What is the objective of Atal Innovation Mission?
Atal Innovation Mission aims to promote innovation and entrepreneurship among students, entrepreneurs, and startups.
What is the benefit of Credit Guarantee Fund Trust for Micro and Small Enterprises?
The scheme provides collateral-free credit to MSMEs and startups with a credit guarantee cover of up to 75% to banks and financial institutions for loans up to INR 2 crore.
What is the benefit of National Small Industries Corporation?
The scheme provides various benefits to startups, such as raw material assistance, marketing assistance, technology upgradation support, export promotion support, incubation and training support.