In this blog post, we will explore some of the most popular government schemes for startups and shed light on how they have catalysed the establishment of startups across the country.
Top 5 Startup Schemes in India
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StartUp India
The Indian Government has lunched Startup India Scheme on 16 January 2016. The objective of this initiative is to foster innovation and support a startup environment, ultimately catalyzing economic growth and creating job opportunities.
The number of startups in India has grown from around 350 in 2014 to over 99,000 in 2023. The Department of Industrial Policy and Promotion (DIPP) has recognized 14,036 startups. These startups have created over 8.6 lakh direct jobs. Startup India offers financial assistance to aspiring entrepreneurs in the form of loans and subsidies.
The program is based on three pillars:
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Providing funding support and incentives
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Industry-Academia Partnership and Incubation
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Simplification and Handholding
Since its launch, more than 92,000 entities have been recognized as startups. As of March 2023, there are over 60,000 startups registered under this initiative.
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Pradhan Mantri Mudra Yojana (PMMY)
Pradhan Mantri MUDRA Yojana (PMMY) is an initiative introduced by the Hon'ble Prime Minister on April 8, 2015, aimed at offering loans of up to 10 lakhs to small and micro enterprises that are non-corporate and non-agricultural.
The mission of Mudra scheme is to create an inclusive, sustainable and value-based entrepreneurial culture, in collaboration with our partner institutions in achieving economic success and financial security.
The PMMY offers three types of loans to MSEs:
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Shishu: Loans up to Rs 50,000
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Kishore: Loans between Rs 50,000 - 50 lakh
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Tarun: Loans between Rs 5 lakh - 10 lakh
The PMMY has been a major success, with over Rs. 3.4 trillion disbursed as of March 2023. More than 40.82 crore loans amounting to ?23.2 lakh crore have been sanctioned since the launch of the Scheme. New Entrepreneurs have received approximately 21% of the total sanctioned loans. The scheme has helped to create millions of jobs and has contributed to the economic development of India.
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Atal Innovation Mission (AIM)
The Atal Innovation Mission (AIM) is a government-led initiative under NITI Aayog that aims to promote the culture of innovation and entrepreneurship across the whole nation and was set in 2016. Its objective is to create a facilitating environment for the transformation of ideas into innovative and impactful solutions at schools, universities, research institutes, MSMEs, and industry levels across the country.
AIM has several programs that motivate innovation and research among students and startups. These programs include:
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Atal Tinkering Labs (ATLs)
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Atal Incubation Centers (AICs)
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Atal Innovation Grants (AIGs)
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Atal Startup Mission (ASM)
This mission has established nearly 10,000 Atal Tinkering Labs in 722 districts in India. These labs provide access to over 7.5 million children. It has also established 69 AICs and 14 ACICs in the last five years and created more than 32000 jobs. The ACICs are intended to serve underserved areas of the country.
This mission has led to creating a more supportive environment for innovation and entrepreneurship, and it has resulted in to nurturing of a number of successful startups.
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Startup India Seed Fund Scheme
The Startup India Seed Fund Scheme (SISFS) is a financial support program for startups. The program provides funding for Proof of concept, Prototype development, Product trials, Market entry, and Commercialization.
Eligible startups can apply for the program on the Startup India portal. The program has an outlay of INR 945 Crore. It gives assistance to approximately 3,600 entrepreneurs over the course of the next four years, utilizing a network of 300 incubators.
Under this initiative, entrepreneurs can access funding of up to Rs. 50 lakhs to facilitate market entry, commercialization, or the expansion of their ventures. The funding is provided through convertible debentures or debt or debt-linked instruments. The funding must be repaid to the government after 1 year with a 4% interest rate. The repayment should be completed in 5 years as EMI.
Seed funding is the first official equity funding stage for a business venture. Seed funding often comes from angel investors, friends and family members, and the original company founders.
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SETU & MAARG
Supporting Entrepreneurs in Transformation & Upskilling (SETU) was launched under Startup India. Its objective is to offer mentorship and customized support for connecting the finest startups from India with investors and leaders in the US-based startup ecosystem.
The Mentorship, Advisory, Assistance, Resilience, and Growth (MAARG) program serves as a comprehensive solution hub for startups in India. The portal has been designed with the intention of being accessible from all parts of the country to facilitate connections with mentors. These mentors provide invaluable human intelligence in guiding startups, which is something that cannot be substituted.
Over 200 mentors are being onboarded into MAARG to provide guidance and facilitate the immediate development of startups.
Conclusion:
It's clear that with the right support, entrepreneurial dreams can become reality. Government programs like StartUp India, Pradhan Mantri Mudra Yojna, MAARG & SETU, etc. coupled with connections to the thriving Indian entrepreneurial community in the US, offer invaluable resources for aspiring entrepreneurs to transform their brilliant ideas into successful ventures. Dream big and seize these opportunities!