Government Schemes to Start-ups in India

Government Schemes That Provide Financial Support to Start-ups in India.
 
Everyone wants to start their own business these days. India has seen a dramatic surge in the number of start-ups over the past few years. Numerous startups in financial, education, pharmaceutical, e-commerce, and related industries have risen in recent years, greatly boosting the Indian economy by giving millions of educated youth jobs nationwide.
 
The Government of India has developed a number of measures to help startups in India in recognition of the critical role that these businesses play in increasing the nation's economy.
 
Let’s have a look at a few government policies that will assist you in applying for a business loan in order to achieve your goal.
 
1) Start-up India
Start-up India is the Government of India's flagship project which has been launched to stimulate startup culture and establish a robust and supportive workplace for entrepreneurship and innovation in India. Start-up India has developed a variety of programs since its inception on January 16, 2016, with the goal of aiding entrepreneurs and transforming India into a nation of job creators rather than job seekers.
 
The Pradhan Mantri Mudra Yojana, also known as the MUDRA loan is the main initiative of Start-up India. This program provides low-interest microfinance loans to developing businesses from poor socioeconomic groups. Till now, this initiative has been allocated ₹20,000 Crores in funding.
 
2) Atal Innovation Mission (AIM)
The Atal Innovation Mission (AIM) is the Government of India's flagship program. It has been established by Niti Aayog to foster a spirit of creativity and entrepreneurship throughout the nation. The goal of AIM is to establish new initiatives and regulations to promote innovation in many sectors of the economy, to provide forums and cooperation opportunities for various stakeholders, and to build an umbrella organisation to manage the country's innovation and entrepreneurial ecosystem.
 
By building world-class Atal Incubators, the initiative aspires to foster collaboration between state, central, and local innovation schemes and to spread the entrepreneurial spirit from schools to corporation.
 
3) e-Biz Portal
This is the first online platform that facilitates government-to-business (G2B) communication. It was founded in 2013. The major goal of the e-Biz platform is to foster an entrepreneur-friendly environment in the country. Infosys created the platform, which has now deployed 29 services in five Indian states. It is a single online communication arena for Indian businesses and investors to perform transactions, approvals, and other relevant operations.
 
4) Support for Electronics and Information Technology International Patent Protection (SIP-EIT)
The Ministry of Electronics and Information Technology developed the SIP-EIT project to offer monetary assistance for MSMEs and technology startup companies in order to spur innovation, recognize foreign patent claims, and maximize the growth momentum in the nation. Since inventions run the danger of being misused or stolen, companies that wish to expand internationally must file for intellectual property rights. Therefore, using the SIP-EIT framework, the government has implemented a number of prevention strategies.
 
5) Multiplier Grants Scheme (MGS)
MGS was introduced by the Department of Electronics and Information Technology (DeitY) to encourage combined R&D between businesses and academic institutions in the creation of goods and packages. In accordance with this program, the government offers federal aid at a rate that is twice as much as what the private sector contributes, assuming that the private sector funds the R&D of goods that are offered to institutions.
 
MGS promotes and speeds up the creation of local goods and services. Under this plan, funds from the government are available for projects with a maximum budget of ₹2 Crores and a maximum repayment duration of 2 years.
 
6) Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The government formed CGTMSE to provide MSME and startup businesses with collateral-free business loans. The initiative enables business units to obtain collateral-free business loans at low-interest rates up to a maximum of ₹100 Lakhs through a collaboration with SIDBI (Small Industries Development Bank of India) with the purpose of encouraging new enterprises and relaunching established ones. The loan is mostly offered to manufacturing enterprises as a capital investment or term loan.
 
The major goal of this strategy is to persuade the financier to prioritize project feasibility and base the credit facility only on the principal security of the funded assets. The lender using the guarantee facility should also make an effort to extend composite credit to the borrowers so they may acquire working capital and term loans from the same source.
 
7) Software Technology Park (STP)
The STP Scheme is an entirely export-oriented program for the creation and export of computer software, including the export of specialist services delivered by manual or electronic medium. It is a distinct plan that concentrates on the computer software industry. The plan incorporates the government's 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) as well as the idea of Science Parks/Technology Parks, which are already operational in other parts of the world.
 
The availability of single-point contact solutions for various departments, which allows them to perform export operations at a speed consistent with worldwide norms, is the distinctive characteristic of the STP program.
 
8) Loan for Rooftop Solar Pv Power Projects
In order to increase its dependence on non-conventional power sources, the initiative is dedicated to constructing 40,000 MWp of grid-interactive rooftop solar PV plants over the next five years. In India, these rooftop solar PV plants with capacities ranging from 1 kW to 500 kW are anticipated to be built in a variety of settings, including residential and commercial. For these plants, the program offers organizations or specific businesses a 15% subsidy.
 
9) NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)
The National Science and Technology Entrepreneurship Development Board has introduced the NewGen IEDC project. The system employs a variety of strategies, including training, support, and counseling, to foster an attitude of innovation and entrepreneurship among Indian youth. Additionally, there are provisions for encouraging and promoting entrepreneurship.
 
10) Dairy Processing and Infrastructure Development Fund (DIDF)
DIDF is a fund facility, which was established by NABARD in 2017 to provide loans to multi-state milk cooperatives, state dairy federations, milk-producing firms, etc. The loan component is 80%, with the borrower responsible for the remaining 20% payment. The interest rate is 6.5% per annum, and the loan term is determined by the sum borrowed. The loan repayment is insured by the state government, and if the borrower fails to repay the loan, the state government intervenes to pay the defaulting amount.
 
Concluding Comments
The Indian government is taking significant efforts in order to increase the number of budding entrepreneurs in India and support the expansion of the Indian start-up ecosystem. Individuals intending to launch a startup can get monetary assistance from any of the above-mentioned schemes. However, doing extensive research before finalizing will assist you in understanding the numerous schemes,  enabling you to pick the best ones.
 
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