Top Government Schemes in India to Help Your Startup

Startup India is a flagship programme of the Indian government that aims to actively encourage entrepreneurs and startups. The program's major goal is to build a robust ecosystem in India that fosters and protects innovation and entrepreneurs, ultimately producing large-scale job opportunities and contributing to the country's long-term economic prosperity. Following that, the Indian government created the Aatmanirbhar Bharat initiative as well as the 'Make in India' programme, with the goal of developing India into a worldwide manufacturing and design export center.

Today, India has the third-largest startup ecosystem in the world. There are over 100 unicorns and over 60,000 companies functioning in the country. This success may be ascribed in part to the Indian government's active support for startups and entrepreneurs through its many plans and initiatives. All of the aforementioned initiatives were accompanied by different government schemes and resources to provide entrepreneurs with financial aid and working capital. For example, under the Startup India Action Plan, businesses are entitled to a number of perks such as tax breaks and exemptions, low-interest loans, skill development programmes, priority in public procurement, and so on. This article will discuss a handful of the many programmes introduced by the Indian government.

SAMRIDH Scheme
Startup India Seed Fund
Startup India Initiative
Startup Leadership Program
ASPIRE
Pradhan Mantri Mudra Yojana (PMMY)
Qualcomm Semiconductor Mentorship Program (QSMP)
Digital India Bhashini
Digital India GENESIS
India Water Pitch-Pilot-Scale Startup Challenge
Ministry of Skill Development and Entrepreneurship
ATAL Innovation Mission
eBiz Portal
Dairy Processing and Infrastructure Development Fund (DIDF)
Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
Multiplier Grants Scheme (MGS)
Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE)
Software Technology Park (STP) Scheme
The Venture Capital Assistance Scheme (VCA)
Loan For Rooftop Solar Pv Power Projects
NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)
Single Point Registration Scheme
Modified Special Incentive Package Scheme (M-SIPS)
Stand Up India Scheme
High Risk - High Reward Research
IREDA-NCEF Refinance Scheme
Dairy Entrepreneurship Development Scheme
Drone Shakti
Zero Defect Zero Effect (ZED) Certification Scheme
Sub-Mission on Agricultural Mechanization (SMAM)
Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
Design Clinic Scheme for Design Expertise

Aspire - A Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship

ASPIRE- was established to provide a network of technology centers and incubation centers to accelerate entrepreneurship and to support startups for innovation in the agriculture sector.

The objective of The Scheme                                                                                            

• Reduce unemployment by creating new jobs.
• Encourage the culture of entrepreneurship in India.
• District-level grassroots economic development 
• Facilitate new business solutions for unmet social requirements
• Promote innovation to boost the competitiveness of the MSME sector.

 Pradhan Mantri Mudra Yojana

Micro Units Development and Refinance Agency Ltd. [MUDRA] is an NBFC that promotes the growth of the country's micro-enterprise sector. MUDRA offers refinancing assistance to banks and microfinance institutions for loans of up to ten lakh rupees. Under the Pradhan Mantri MUDRA Yojana Scheme, MUDRA offers refinancing to micro businesses. The other products are for sector development assistance. MUDRA's bouquet of contributions is displayed below. The offerings are aimed at a wide range of benefit categories.

Fiscal Incentives
MUDRA delivers incentives through various interventions to symbolize the level of growth-development and finance needs of the recipient micro unit entrepreneur, as well as to provide a reference point for the next phase of graduation/growth to look forward to:

• Shishu: up to 50,000/- in loans
• Kishor: loans beyond 50,000/- and up to 5 lakh
• Tarun: covering debts in excess of 5 lakhs and up to 10 lakhs

Banks often make loans of up to 10 lakh rupees to Micro Small Enterprises with no collateral.

The objective of The Scheme

Mudra loans are given out for a number of reasons, including revenue generating and job development. The loans are mostly used for:

• Business loans for vendors, traders, shopkeepers, and other service sector operations
• MUDRA Cards provide working capital loans.
• Micro Unit Equipment Financing
• Loans for transportation vehicles

Support for International Patent Protection in Electronics and Information Technology (SIP-EIT)

SIP-EIT is a scheme that offers financial assistance to MSMEs and Technology Startup units in order to foster innovation and acknowledge the value and capabilities of global IP while also exploiting development prospects in the ICTE sector.

SIP-EIT Benefits

To qualifying entities, financial assistance is granted for international patent applications in the ICTE sector.

 Expense reimbursement is restricted to the lower cost of the following. 

• 15 lakhs per innovation
• 50% of total costs

Expenditures incurred include filing fees, examination fees, processing fees, search expenses, legal fees, and translation costs. Furthermore, expenses will only be repaid if they are incurred between the date the application is accepted and the date the patent is awarded.

SIP-EIT Financial Assistance

The reimbursement of expenditures will be made in installments and dispersed as follows:

Applications submitted directly in a foreign nation after completing the Section 39 condition of the Indian Patent Act: 

1. Reimbursement of 25% of the costs paid in submitting the patent application in the relevant foreign region
2. Following the issuance of the patent, 75% of the fees spent subsequent to the filing will be returned.

Applications submitted in a foreign nation within 12 months after submitting a patent application in India (Convention Application):

1. Reimbursement of 25% of the costs paid in submitting the patent application in the relevant foreign region.
2. Following the issuance of the patent, 75% of the fees spent subsequent to the filing will be returned.

Applications submitted via the PCT route:

1. Subject to the International Search Report (ISR) report, 25% of the expenses paid in submitting a PCT application will be reimbursed. If the report is positive, 25% of the expenses associated with the examination will be repaid.
2. 25% of the fees for filing the national phase application in a foreign country.
3. 75% of fees spent from National filing up to grant shall be reimbursed when the patent is granted.

Multiplier Grants Scheme (MGS)

The aim of the scheme is to encourage industry to collaborate with premier Academic and Government R&D institutions (hereafter also called institute) for the development of products/packages.

The objectives of the scheme are:

• Establish, nurture and strengthen the linkages between the Industry and Institutes.
• To promote industry-oriented R&D at institutes
• Encourage and accelerate development of indigenous products and packages
• Bridge the gap between R&D / Proof-of-concept and commercialization/globalization.

The expected benefits from the scheme are:

• The academic and Government R&D Labs would be geared toward market-oriented R&D; This would also enhance the relevance of Education and Training to meet the market requirements.
• The industry would be enabled in terms of mobilizing technical know-how and skills
• The industry would be enabled to quickly respond to market needs in terms of cost-competitive indigenous innovative products.
• Incentives, in terms of royalty sharing, may help in attracting and retaining quality manpower in academia/ Government R&D Labs
• Close industry-academia/ R&D Lab interaction may lead to an increase in the number of entrepreneurs.

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

The Government of India (GoI) established the Loans Guarantee Fund Scheme for Micro and Small Enterprises (CGS) to provide collateral-free credit to the micro and small business sector. Both current and new businesses are eligible for coverage under the scheme. To execute the Credit Guarantee Fund Scheme for Micro and Small Enterprises, the GoI Ministry of Micro, Small and Medium Enterprises and the Small Industries Development Bank of India (SIDBI) formed the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Scheme Advantages and Highlights

• Fund and non-fund-based credit facilities (Letters of Credit, Bank Guarantees, etc.) up to Rs 200 lakh per qualified borrower are covered by the guarantee scheme if they are given on the basis of project feasibility without collateral security or third-party guarantee.
• The scheme provides guaranteed coverage up to 50%, 75%, 80%, and 85% of the credit facility's sanctioned amount. The guarantee cover for smaller firms is 85% for loans up to Rs 5 lakh. The extent of guarantee cover is 50% of the credit facility sanctioned amount for a credit ranging from Rs 10 lakh to Rs 100 lakh per MSE borrower for retail trade activity.
• The guarantee cover is 80% for I Micro and Small Enterprises operated and/or controlled by women, and (ii) all credits/loans in the North East Region (NER) for credit facilities up to Rs 50 lakh. In the event of a default, Trust would satisfy the claim up to 75% of the amount in default of the credit facility issued by the lending institution for credit facilities up to Rs 2 crores.

Single Point Registration Scheme (SPRS)

The government is the single greatest purchaser of a wide range of items. The Government Stores Purchase Programme was initiated in 1955-56 with the goal of increasing the percentage of purchases from the small-scale sector. NSIC registers Micro and Small Enterprises (MSEs) for participation in Government Purchases under the Single Point Registration Scheme (SPRS).

The main objective of SPRS

• To increase government purchases from the small-scale industries (SSIs).
• In view of increasing the purchases from the SSIs, the Government had launched the Stores Purchase Programme during 1955-56.
• Under this Programme, the government had initiated the Single Point Registration scheme (SPRS) in 1976. This scheme was further revised in 2003.

Benefits of SPRS

• In government bids, total exemption from Earnest Money Deposit (EMD).
• Government Tender Sets are provided to qualifying MSEs at no cost.
• The government has designated 358 types of commodities for procurement from Small scale entities under the SPRS plan.
• The government has also set a minimum ceiling of 25% of total yearly procurement of goods and services by Union Ministries, Departments, and PSUs from MSEs under this plan.
• Out of this 25% restriction, 4% of supplies are designated for purchase from SC/ST units. Furthermore, 3% is set aside for purchases from women-owned businesses.
• MSES that have quoted in the lowest level price band of L1+15% can provide up to 25% of the total need of products while participation in a Government procurement. To do this, they must lower their pricing to the L1 Price Band. In this case, the L1 customers will be medium or large size unit.

 Extra Mural Research or Core Research Grant (CRG)

This scheme encourages rising and prominent scientists in the fields of science and engineering to compete for individual-centric research funding. Because the plan offers active researchers with core research assistance, the current term Extramural Research (EMR) has been renamed Core Research Grant (CRG).

The main objective

CRG's role is to enable research labs, academic institutions, and other R&D companies in doing research in all frontier domains of science and engineering. As a result, it encourages emerging and established scientists to pursue an individual-centric competitive research financing model.

Nature & Duration of Support

• The CRG plan gives research funding to an individual researcher or a group of researchers working at a recognised academic institution, national laboratory, or other recognised R&D institution in India.
• Typically, financing is offered for three years.
• The research funding covers equipment, manpower, consumables, travel, and contingencies. "Overheads" must also be supplied to the implementing institution in accordance with SERB standards.
• Proposals from candidates affiliated with National Laboratories/Research Institutions should be in keeping with the lab/required institution's research effort. (A certificate legally authorized by the Head of the Institution should be included with the proposal.)
• National Laboratories and Research Institutions provide 50% of the project's non-recurring costs. For projects costing more than Rs. 80 lakh, the Lab/Institution shall contribute 50% of the non-recurring and consumable costs. If the study is accepted for SERB funding, a certificate from a National Laboratory or Research Institution will be required.

High-Risk and High-Reward Research

High Risk and High Reward Research is a scheme that encourages and supports innovative concepts and ideas that are predicted to have a paradigm-shifting impact on science and technology.

The main objective

The High Risk - High Reward Research Scheme intends to promote ideas that are theoretically novel and hazardous, and if successful, are projected to have a paradigm-shifting impact on science and technology. This might be in the form of fresh hypotheses or scientific discoveries that help in the birth of new technology.

Nature & Duration of Support

• Typically, financing is offered for three years. In extreme instances, the expert committee may grant a 5-year extension.
• There is no financial restriction for these kind of initiatives. Apart from overhead funding, the research grant covers equipment, consumables, contingencies, and travel.

The Design Clinic Scheme for MSMEs

This scheme is Bringing together the MSME sector and design knowledge on a single platform, as well as provides professional advice and answers to design difficulties, resulting in continual development and value addition for current goods. It also attempts to provide value-added, cost-effective solutions.

The scheme's main objectives are as follows: 

• To construct a sustainable design eco-system for the MSME sector via ongoing learning and skill development.
• Bring the industrial design community closer to the SMEs.
• Create an institutional foundation for the industry's design requirements.
• Raising awareness of the importance of design and establishing design learning in the MSME
• Design may help to boost the competitiveness of local products and services.

MSME launched the Design Clinic initiative to foster a sustainable design eco-system via continual training and skill development. Under this initiative, the government would provide up to INR 60,000 (Indian rupee sixty thousand) for attending design seminars and up to INR 3.75 lakhs or 75% (seventy-five percent) of the conference's cost if the seminar is organised by a startup or MSME.

Zero Defect Zero Effect (ZED) scheme

The scheme is a comprehensive push to raise MSMEs' knowledge of ZED production, inspire them to assess their businesses for ZED, and assist them. Following ZED evaluation, MSMEs may significantly decrease waste, enhance productivity, extend their market as IOPs, become vendors to CPSUs, have more IPRs, create new goods and processes, and so on.

Objective of the Scheme:

• To create a Zero Defect Manufacturing Ecosystem in MSMEs.
• To encourage the use of quality tools/systems and energy-efficient production. Allow MSMEs to produce high-quality products.
• To encourage MSMEs to consistently improve their product and process quality standards.
• To train experts in ZED manufacture and certification.
• To help the "Make in India" campaign

Benefits for ZED

• Through the journey of ZED Certification, MSMEs can reduce wastage substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc.
• It has the capability to change the mindset of manufacturers and make them more environmentally conscious.

Conclusion

The government is not only promoting these schemes to help the present group of startups benefit from them but also motivating the budding entrepreneurs, startups, and students from all domains, who tend to be independent and lead the vision of Atmanirbhar Bharat forward. These initiatives have been introduced for the development of the Indian startup ecosystem. The country now seems to be heading towards the golden era of entrepreneurship, where if things go as planned, India may host as many successful startups as the USA or any other leading nation by 2030.