Starting a business comes with its fair share of challenges. Fortunately, the Indian government has recognized the importance of startups in driving innovation and economic growth, and they've rolled out a range of initiatives to support budding entrepreneurs like you.
In this blog, we're going to take you on a guided tour of these government schemes, offering insights into what they offer, who's eligible, and how they can benefit your startup.
Why are Government Schemes important for Startups?
Government support plays a pivotal role in nurturing and sustaining startups for several reasons:
1. Access to Funding
- Government-backed schemes and initiatives provide access to funding and financial assistance, which is crucial for startups, especially in their early stages of development.
- These funds can help cover initial capital expenditures, research and development costs, and other operational expenses.
2. Regulatory Support
- Governments often create favorable regulatory environments and offer incentives such as tax breaks, exemptions, and subsidies to encourage entrepreneurship and innovation.
3. Infrastructure Development
- Government investment in infrastructure development, including technology parks, startup incubators, and innovation hubs, provides startups with access to essential resources, facilities, and networking opportunities.
4. Skill Development and Training
- Government-sponsored programs and initiatives focus on skill development, entrepreneurship training, and capacity-building for aspiring entrepreneurs. By imparting essential business skills, knowledge, and mentorship, governments empower startups to navigate challenges effectively.
5. Market Access and Promotion
- Government initiatives aim to facilitate market access for startups by promoting domestic and international trade, fostering industry partnerships, and facilitating market linkages through trade fairs, exhibitions, and business delegations.
6. Innovation and Research Support
- Governments incentivize research and innovation through grants, subsidies, and funding programs aimed at supporting startups engaged in technology development, product innovation, and scientific research.
7. Job Creation and Economic Growth
- Government support for startups leads to the creation of new job opportunities, stimulates economic activity, and contributes to GDP growth by fostering entrepreneurship, innovation, and productivity.
List of Government Schemes for Startups in India
Name of the Scheme
Description
Who is it for?
Benefits
Startup India Seed Fund Scheme
To provide monetary support for proof of concept, prototype development, product trials, market, and commercialization
Startups using Technology as their core product or service
Under this scheme, Financial assistance up to Rs. 50 lakh will be provided to startups at an early stage through incubators
Women Entrepreneurship Platform (WEP)
To promote women entrepreneurship in the country by empowering them through financial aid and mentoring
For Women Entrepreneurs
Apart from providing incubation & acceleration, this scheme offers mentorship and financial and marketing assistance.
Pradhan Mantri Mudra Yojana (PMMY)
To loan funds in the form of MUDRA for promoting MSMEs
For small-scale businesses & MSMEs
Business loans ranging from Rs.50,000 to Rs.10 lakh can be applied under this scheme, which is divided into three categories: Sishu, Kishor, and Tarun.
Promoting Innovations in Individuals, Start-ups and MSMEs (PRISM)
To provide grants, technical advice, and mentorship to individual innovators, guiding them through the various stages of incubating their ideas until they transform into viable enterprises
For Innovators in the technology area
Upto INR 2,00,000 or 90% of the approved project cost for prototype or model development
Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
To foster innovation by providing financial support to MSMEs and Technology Startup units for international patent filing
For MSMEs and Technology startups
A maximum reimbursement of Rs. 15 Lakhs per invention or 50% of the total charges incurred in filing and processing a patent application, whichever is lesser
Credit Guarantee Fund
To improve the credit delivery system and make credit more accessible to small and medium-sized businesses
For Micro and Small Enterprises
Collateral-free loans up to a limit of Rs. 200 lakh are available for individual MSE
Startup Accelerators of MeitY for Product Innovation, Development, and Growth (SAMRIDH)
To provide funding support to the tech and software startups with proof of concept & innovations.
For Tech & Software startups
Under this scheme, startups can get funding of up to Rs. 40 lakhs based on current valuation and growth stage through selected accelerators.
Nidhi Seed Support System (NIDHI-SSS)
To provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization, etc.
For MSMEs and Technology startups
Financial Support up to Rs 100 lakhs per start-up as Seed Support
To conclude, the government of India has been actively participating in boosting the startup ecosystem, and numerous initiatives are launched each financial year to contribute to the growth of MSMEs. For detailed features, eligibility, process and benefits, visit the respective page for schemes and if you feel any of these schemes can give wings to your startup dreams, you can go through the given details and apply.
