Government Schemes for Startups in India

Saptaparni Raha
Dec 31, 2022
3 min read

Written by Saptaparni Raha, Lawyer

Raj wants to initiate his startup, but he does not have any financial support. He is very disappointed until his friend Rohan gives him some exciting information regarding some government schemes which encourage and support new startup founders like Raj.

Introduction

There are several schemes and initiatives launched by the Indian government to assist business development. Earlier, any startup founder could have received their initial funding from these schemes, but there would be uncertainties and lots of legal responsibilities. But now, the Government of India has come to assist the founders with their start-ups.

Atal Innovation Mission

Atal Innovation was initiated by the Government in 2015 to help in promoting innovation development and research. Around 150 crores rupees have been allocated by the government to the department of science and technology to undertake this mission. People belonging to academics and industries can get financial support for their ideas.

Pradhan Mantri Mudra Yojana

This scheme was launched in 2015 to provide startup funding, which is easily accessible to credit for micro and small enterprises. This scheme offers support and finance to entrepreneurial ventures which have the potential to create employment.

It is divided into three types of businesses:

Shishu: it covers loans of up to 50000 rupees

Kishore: it covers loans above 50000 rupees

Tarun: it covers loans above 5 lakhs but up to 10 lakhs.

Startup India Seed Fund

This scheme helps to compete with giant companies by assisting in proof of concepts, prototype development, market entry, etc. You will be ensured by this scheme that your startup will not face any difficulties in establishing its enterprise. Around 283.5 crores rupees have been reserved by the government under the Union budget of 2022.

Venture Capital Assistance

The government has also come forward for agricultural business. Small Farmers Agribusiness consortium helps to provide an interest-free loan to small projects which have the potential to become successful ventures.

Credit Guarantee Trust Fund for Micro and Small Enterprises

The ministry of MSME and small industries development bank came forward to assist the micro and small-level businesses without any security. Around 1 crore rupees has been allocated by the ministry and small industries development bank for this scheme.

Credit-linked Capital Subsidy

If MSMEs want to upgrade their technology and productivity to compete globally, this scheme assists with the cash support provided to the small-scale industries for purchasing new plant/ equipment on a self-conducive basis.

This scheme encourages youth to engage in entrepreneurship. The objective of this scheme is to get a new life in the Indian economy. If someone faces difficulties in the early stages of their start-up this scheme is always ready to support them.

Multiplier Grants Scheme

If someone intends to pursue collaborative research and development between industry and academia, this scheme is absolutely for them. The person shall get all financial support from the government if the industry supports the research and development of products to commercialize them at the institutional level. You may receive around 2 crores rupees per project.

SAMRIDH Scheme

This scheme was initiated to enhance the startup accelerator ecosystem in India. Ashwini Vaishnav, a newly appointed minister of Electronics, Information, and Technology, initiated this to help the startup grow, develop, and product innovation. It provides funding and helps start-ups to bring skill sets together that will help them to grow successfully.

SMAM

Submission of agricultural mechanization was initiated by the Government to expand the reach of farm mechanization to small and marginal farmers where there is low availability of farm power.

Conclusion

The start-up funding ecosystem is growing in India. A large number of initiatives are being taken up by the Government and the private sectors. These schemes are beneficial to get money for your start-ups, but it is also very important that you do thorough research before applying for these schemes.

Reference

Top 5 Government Schemes For Startups And MSMEs In India (msmex)