India is gradually building a robust startup ecosystem. In order to promote and support entrepreneurs, the government has created a ministry (department) dedicated to helping new businesses. The ruling party has introduced many schemes to bolster entrepreneurship in India and to assist emerging startups financially.
List of Government Schemes To Support Startups In India
Startup India Seed Fund
On 16 January 2021, Prime Minister Narendra Modi announced
the launch of the 'Startup India Seed Fund' — worth INR 1,000 crores — to help
startups and support ideas from aspiring entrepreneurs. PM Modi said that the
government is taking important measures to ensure that startups in India do not
face any capital shortage.
Startup India Initiative
The Prime Minister of India launched the Startup India
Initiative in the year 2016. The idea is to increase wealth and employability
by giving wings to entrepreneurial spirits. The government gives tax benefits
to startups under this scheme and 798 applicants have made use of this scheme
to date. The Department of Industrial Policy and Promotion is maintaining this
initiative and is treating it as a long term project. Moreover, the overall age
limit for startups has been increased from two years to seven years. And for
biotechnology firms, the age limit is ten years from the date of incorporation.
It is one of the best government-sponsored startup schemes for entrepreneurs as
it is provides several concessions.
The government has made continuous efforts to improve the
social and economic aspects of life in rural areas of India. Since 56% of the
Indian population lives in the rural areas, the government is promoting
entrepreneurship and innovation in the rural sector. The ASPIRE scheme aims at
increasing employment, reducing poverty, and encouraging innovation in rural
India. However, the main idea is to promote the agro-business industry. The
Ministry of Medium and Small Enterprises has tried to boost economic
development at the grassroots level. The total budget of the scheme was INR
62.5 crores for the period of 2014-2016.
Ministry of Skill Development and Entrepreneurship
The task of promoting entrepreneurship was earlier given to
different departments and government agencies. In 2014, the Prime Minister
decided to dedicate an entire ministry to build this sector as he felt that
skill development required greater push from the government's side. Furthermore,
the idea is to reach 500 million people by the year 2022 through gap-funding
and skill development initiatives.
ATAL Innovation Mission
In the budget session of 2015, the Indian government
announced the Atal Innovation Mission (AIM); with the name coming from Atal Bihari
Vajpayee, the Former Prime Minister of India. Atal Innovation Mission was
established to create a promotional platform involving academicians and draw
upon national and international experiences to foster a culture of innovation,
research, and development. The government allocated AIM about INR 150 crores in
the year 2015.
Milk Unions, multi-state milk cooperatives, state dairy federations, milk producing companies, and NDDB subsidiaries meeting the eligibility criteria under the project can borrow loan from NABARD. The loan component would be 80% (maximum rate) with the end borrower's contribution at 20 % (minimum rate). Borrowers shall get the loan at an interest rate of 6.5% per annum. The period of repayment will be 10 years. The respective state government will be the guarantor of loan repayment. Moreover, if the borrower is not able to contribute his or her share in the scheme, the state government shall step in.
Source : https://startuptalky.com/list-of-government-initiatives-for-startups/