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10 Best Govt Schemes To Support Startups In India That Every Entrepreneur Should Know

Online Legal India LogoBy Online Legal India Published On 21 Jun 2021 Updated On 18 Jan 2023 Category Business

Startups is a small business founded by one or more entrepreneurs to create and promote a unique product or service. According to PitchBook, a US-based research firm, startups raised $7.8 billion in the first four months of this calendar year, accounting for around 70% of the total corpus of $12.1 billion raised in 2020 and more than half of the $14.2 billion raised in 2019. Looking at which, our government has launched the Best Govt Schemes to give assistance to the Startups in India. You need to make Company Registration first to avail the Govt assistance for your Startups.

A Startup is defined as a company established in India that was founded less than ten years ago and generates revenue less than Rs 100 million in yearly revenue

  1. Startup India Initiative: By Start-Up India scheme the government has already launched the I-MADE programme, which aims to help Indian entrepreneurs create 10 lakh (1 million) mobile app start-ups, as well as the MUDRA Bank's scheme (Pradhan Mantri Mudra Yojana), which aims to provide micro-finance, low-interest loans to entrepreneurs from low socioeconomic backgrounds. A total of 20,000 crores has been aside approved for this programme.
  2.  ATAL Innovation Mission: The Indian government's Atal Innovation Mission (AIM) aims to promote a culture of innovation and entrepreneurial development across the country. Entrepreneurship is encouraged in universities and enterprises. AIM is developing world-class Atal Incubators (AICs) at the university, NGO, SME, and corporate industrial levels to promote entrepreneurs and job creators in the country addressing both commercial and social entrepreneurship prospects in India and applicable globally.
  3.  eBiz Portal :This is the first online platform for government-to-business (G2B) communication. The portal's main purpose is to reform the country and create a business-friendly environment. As part of a public-private partnership, Infosys developed the eBiz Portal. It acts as a communication hub for Indian businesspeople and investors. The platform has launched 29 services in five Indian states: Andhra Pradesh, Delhi, Haryana, Maharashtra, and Tamil Nadu. The government will gradually increase the scheme's services.
  4.  Support for International Patent Protection in Electronics & Information Technology (SIP-EIT) SIP-EIT is a scheme that gives financial support to MSMEs and Technology Startups in order to stimulate innovation and acknowledge the value and capabilities of global IP while also maximising the ICTE sector's growth potential. Support for International Patent Protection in Electronics and Information Technology is being implemented by the Ministry of Electronics and Information Technology (SIP-EIT). Businesses that want to do business in other countries must apply for intellectual property rights. Since innovations are always at risk of being stolen or misappropriated, the government has implemented a number of measures to protect them intellectually. 
  5. Multiplier Grants Scheme (MGS)The Multiplier Grants Scheme was established by the Department of Electronics and Information Technology (DeitY) (MGS). The scheme intends to promote collaborative research and development (R&D) between industry and academics/institutions for product and package development. The government would provide financial support up to twice the amount contributed by the industry if the industry supports R&D of items that can be marketed at the institutional level under the scheme. MGS encourages and accelerates the development of aboriginal goods and services.The government grants would be limited to a maximum of INR 2 crores per project, with each project's tenure likely to be fewer than two years. For industrial associations, the cost would be INR 4 crores over three years.


     
  6. Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE) was established by the Indian government to give zero-collateral business loans to micro-businesses, small-scale enterprises, and startups. It enables firms to obtain loans at heavily subsidised interest rates without the need for collateral.The government offers a maximum sum of up to INR 100 lakhs under this plan in collaboration with SIDBI (Small Industries Development Bank of India) for promoting new businesses and rehabilitating old ones. This loan, which is mostly for manufacturing companies, can be taken up as a working capital or term loan.
  7. Software Technology Park (STP) The Software Technology Park (STP) Scheme is a 100% export-oriented programme for developing and exporting computer software and professional services via communication networks or physical media. This curriculum is unique in that it focuses solely on one product or sector, notably computer software. The initiative programmes of the government's 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) concepts with the idea of Science Parks/Technology Parks, which is currently in use across the globe.
  8. Loan For Rooftop Solar Pv Power Projects The Indian government has committed to develop 40,000 MWp of Grid-Interactive Rooftop Solar PV Plants in the next five years to increase reliance on non-conventional energy sources. These rooftop solar PV plants will be installed in the residential, commercial, industrial, and institutional sectors around the country, with capacities ranging from 1 kWp to 500 kWp.Rooftop solar plants are commercially feasible since they can generate power for approximately INR 7 per kWh without any subsidies. The government also gives organisations or individual firms a 15% subsidy for these plants, making the scheme even more profitable.
  9. NewGen Innovation and Entrepreneurship Development Centre The National Science and Technology Entrepreneurship Development Board, which is part of the Indian government's Department of Science and Technology, established the NewGen IEDC programme. The project attempts to instil in the Indian youth a spirit of creativity and entrepreneurship. Through counselling, coaching, and assistance, it also aims to support and foster entrepreneurship.
  10. Dairy Processing and Infrastructure Development Fund (DIDF): Milk unions, multi-state milk cooperatives, state dairy federations, milk-producing enterprises, and NDDB subsidiaries that fulfil the project's eligibility requirements can apply for a loan from NABARD. The loan component would be 80% (maximum rate), with a 20% payment from the final borrower (minimum rate). Borrowers will be charged a 6.5 per cent annual interest rate on their borrowing. The payback time will be determined by the amount of money borrowed. The payback duration will be ten years. The loan repayment will be guaranteed by the relevant state government. Furthermore, the state government will step in if the borrower is unable to contribute his or her portion to the plan.

The government is promoting these programmes not just to expand the number of individuals who benefit from them, but also to showcase their accomplishments during the previous five years. These measures have been put in place to help the Indian startup ecosystem grow. India appears to be on the verge of entering the golden age of entrepreneurship. Entrepreneurs if you too are looking to register your Starups. Online Legal IndiaTM should be your one-stop portal for myriad services.

 


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