Schemes to Grow Your Business
A recent report suggests that the Delhi-NCR region has more startups and unicorns in India as compared to Mumbai and Bengaluru region. Also, the report says that Delhi-NCR could become one of the top 5 global startup hubs with government support. One of the prominent government support takes the form of a startup scheme.
The last few years have seen a rise in government schemes like Startup India, Standup India, MUDRA Yojana, etc. The scheme benefits take the form of funding, tax benefits, relaxed regulations, etc. It is imperative for a new business to receive maximum handholding at its early stages.
Scheme for Startups in India
In the course of this blog, I will take you through the most popular startup schemes in India.
1. STARTUP INDIA
The startup India scheme intends to create a vibrant startup ecosystem in the country. Through this initiative, the government aims to encourage innovative and creative startups in the country.
Launch Date: 16th January 2016
Implementing agency: Ministry of Commerce and Industry
Features:
- Fund of funds support – An initial fund of fund support of Rs. 10,000 crore to startups. The fund to be managed by a board with professionals drawn from different industrial cum academic sectors.
- Self Certification system – Startups are allowed to self-certify with environment cum labor laws.
- Tax Exemption – Startups are provided income tax relief in the first 3 years. Also, there is an exemption from the capital gains tax.
- Labor inspections exemption – Exemption from labor inspections for the first 3 years.
- Innovation hub – Creation of an innovation hub under the Atal innovation mission.
- Patent approval – 80% rebate on patent applications
2. STAND UP INDIA SCHEME
Stand up India Scheme aims to provide funding to SC/ST and women entrepreneurs. There is a provision for providing loans between 10 lakh to 1 crore to at least one scheduled caste or scheduled tribe borrower and at least one woman borrower per bank branch.
Launch Date: April 2016
Implementing agency: Ministry of Finance
Features:
- Rs. 5000 crore credit guarantee through National Credit Guarantee Trustee Company (NCGTC).
- Rupay Debit Card for withdrawal of working capital.
- SIDBI refinancing with an initial sum of Rs. 10,000 crore
- Web Portal for facilitating online registration and support services
- Pre-loan training for a smooth loan disbursal
3. ATAL INNOVATION MISSION
Atal innovation mission aims to create a culture of innovation and entrepreneurship in the country.
Launch Date: February 2016
Implementing agency: NITI Aayog
Features:
- Setup of Atal tinkering labs in selected schools across the districts of the country. Also, Atal tinkering labs are equipped with the latest equipment and technology. This provides an impetus for greater innovation and creativity.
- Setup of Atal incubators in universities, colleges, NGOs, and corporate spaces. Interestingly, preference is given to women-led startups.
- Atal New India challenges and Atal grand challenges in specific areas of national importance
- Mentors of change to mentor students at Atal tinkering labs and Atal incubators.
4. MUDRA YOJANA
Pradhan Mantri Mudra Yojana is a flagship scheme of the government of India to provide funding support to small businesses in India.
Launch Date:8 April 2015
Implementing agency: Ministry of Finance
Features:
- MUDRA(Micro Units Development and Refinance Agency) bank is set up as a subsidiary to provide loans to NBFCs and microfinance institutions.
- Loan categories: Shishu category loan of up to Rs. 50,000; Tarun category loan of up to Rs. 5 lakh; Kishore category loan of up to Rs. 10 lakh.
5. M-SIPS SCHEME
The modified special incentive package scheme aims to enhance investments in the electronics goods sector in India.
Launch Date: 2012
Implementing agency: Ministry of Electronics and IT
Features:
- Capital subsidy of 20% for units involved in manufacturing in the SEZ area.
- Capital subsidy of 25% for units involved in manufacturing in the non-SEZ area.
- Reimbursement of Central taxes and duties for high capital investment projects
- Investment threshold variation: 1 crore to 5000 crores depending upon the type of project
6. CREDIT GUARANTEE SCHEME
The credit Guarantee scheme aims to provide loan support to small industries in India.
Launch Date:8 April 2015
Implementing agency: Ministry of Finance
Features:
- Collateral-free loans for MSMEs to avail credit.
- Rehabilitation facility to MSMEs due to failure under unforeseen circumstances.
- Individual MSMEs have a loan limit of 50 lakhs
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