This is a comprehensive guide to various startup schemes and initiatives launched by the Government of India to support entrepreneurs and innovation. It covers all the major initiatives that can help you to start and grow your business. The article talks about funding opportunities, incubation programs, mentorship, and a complete overview of these schemes.
1. Startup India
Startup India is an initiative launched by the Government of India in 2016 to promote entrepreneurship and innovation in the country. The initiative aims to create a favorable environment for startups by providing access to funding, mentorship, networking, and regulatory support. It offers various benefits to startups such as tax exemptions (u/s 80 IAC), relaxed labor laws, and fast-tracked patent application processing.
Register here to enjoy these benefits.
The government has also launched various programs under this initiative, such as the Startup India Hub, which provides a platform for startups to connect with investors and other stakeholders, and the Atal Innovation Mission, which aims to promote innovation and entrepreneurship among students and young professionals. A ₹1,000 Cr Startup Seed Fund was also launched in 2021 to support the setup and growth of startups. Overall, the Startup India initiative aims to create a vibrant startup ecosystem in India and foster economic growth and job creation.
2. Pradhan Mantri Mudra Yojana
Pradhan Mantri Mudra Yojana (PMMY) is a government initiative launched in 2015 to provide funding to micro and small enterprises (MSEs) in India. The scheme aims to promote entrepreneurship and provide financial assistance to individuals and businesses engaged in non-farm income-generating activities, such as trading, manufacturing, and services. The scheme provides loans of up to ₹10 Lacs to eligible borrowers, which can be used to purchase equipment, raw materials, or working capital.
The loans are categorized into three categories - Shishu, Kishor, and Tarun - based on the stage of business and the amount of funding required. The scheme is implemented through a network of public and private sector banks, microfinance institutions, and non-banking financial companies (NBFCs). The PMMY has been successful in promoting entrepreneurship and has provided funding to millions of micro and small enterprises in India, thereby creating job opportunities and contributing to economic growth.
3. Stand-Up India
Stand-Up India is a government initiative launched in 2016 to promote entrepreneurship among women and socially and economically disadvantaged sections of society. The scheme aims to provide funding to such entrepreneurs to start greenfield enterprises in the manufacturing, trading, or services sectors. The scheme provides loans of up to ₹1 Crore to eligible borrowers, which can be used to purchase equipment, raw materials, or working capital. The scheme is implemented through a network of public and private sector banks, and borrowers can avail of loans through designated branches of these banks.
The scheme also provides handholding support to borrowers, including mentorship, training, and market linkages. The Stand-Up India scheme has been successful in promoting entrepreneurship among women and disadvantaged sections of society and has provided funding to thousands of entrepreneurs across the country, thereby creating job opportunities and contributing to economic growth.
4. Atal Innovation Mission
The Atal Innovation Mission (AIM) is a government initiative launched in 2016 to promote innovation and entrepreneurship in India. The mission aims to foster a culture of innovation among students, entrepreneurs, and researchers by providing them with the necessary resources, mentoring, and funding. AIM is divided into two core initiatives: the Atal Tinkering Labs (ATLs) and the Atal Incubation Centers (AICs).
The Atal Tinkering Labs (ATLs) are dedicated innovation workspaces set up in schools, colleges, and other educational institutions across India, where students can work on innovation projects and develop skills in science, technology, engineering, and mathematics (STEM) fields. The labs are equipped with tools, equipment, and software to support student-led innovation projects.
The Atal Incubation Centers (AICs) are incubation centers that provide mentoring, funding, and other support to startups and entrepreneurs working on innovative solutions in various sectors. The centers are located across the country and provide a range of services, including mentorship, funding, and networking opportunities.
AIM also organizes various innovation and entrepreneurship-related events and programs to promote the mission's objectives. Overall, AIM aims to create a robust innovation ecosystem in India and promote economic growth and job creation through innovation and entrepreneurship.
5. Pradhan Mantri Yuva Yojana
Pradhan Mantri Yuva Yojana (PMYY) is a government initiative launched in 2016 to promote entrepreneurship education and training among youth in India. The scheme aims to provide entrepreneurship education and training to over 7 Lac students in five years, to create an enabling ecosystem for entrepreneurship development through entrepreneurship education and training.
The scheme provides entrepreneurship education and training through a network of institutions, including colleges, universities, and other educational institutions. The program covers various aspects of entrepreneurship, such as idea generation, business planning, financial management, marketing, and communication. The program also provides mentoring and handholding support to aspiring entrepreneurs.
PMYY also provides funding support to eligible startups through the Credit Guarantee Fund Scheme for Startups (CGSS), which is covered below. Overall, PMYY aims to create an enabling ecosystem for entrepreneurship development in India by providing education, training, and funding support to aspiring entrepreneurs, thereby promoting economic growth and job creation.
6. National Entrepreneurship Awards
The National Entrepreneurship Awards (NEA) is an initiative launched by the Government of India in 2016 to recognize and reward outstanding and innovative entrepreneurs and enterprises in the country. The awards aim to encourage entrepreneurship and promote a culture of innovation in India.
The awards are given in various categories, including startups, women entrepreneurs, rural entrepreneurs, and social enterprises, among others. The winners are selected through a rigorous evaluation process by a panel of experts and are awarded a cash prize, trophy, and certificate of recognition.
The NEA aims to provide a platform for entrepreneurs to showcase their innovative ideas, products, and services, and create a network of successful entrepreneurs and mentors to inspire and guide aspiring entrepreneurs. The awards also aim to promote entrepreneurship as a career option and create awareness about the government's various initiatives to support entrepreneurs.
Overall, the NEA is a significant initiative in promoting entrepreneurship and innovation in India and has recognized and rewarded several outstanding entrepreneurs and enterprises, thereby creating a positive impact on the entrepreneurial ecosystem in the country.
7. Credit Guarantee Fund Scheme for Startups
The Credit Guarantee Fund Scheme for Startups (CGSS) is a government initiative launched in 2016 to provide credit guarantee coverage of up to ₹2 Crores to startups for loans taken from financial institutions. The scheme aims to provide funding support to startups and promote entrepreneurship in the country.
Under the CGSS, eligible startups can avail of credit guarantee coverage for loans taken from banks and financial institutions, which provides them with collateral-free credit. The scheme covers loans taken for various purposes, including working capital, term loans, and other forms of credit.
The scheme is implemented through a network of banks and financial institutions, and eligible startups can avail of loans through designated branches of these institutions. The scheme also provides handholding support to startups and entrepreneurs, including mentoring, training, and networking opportunities.
The CGSS has been successful in promoting entrepreneurship and providing funding support to startups in India. The scheme has provided collateral-free credit to several startups and has created an enabling ecosystem for startups to grow and thrive. Overall, the CGSS is a significant initiative in promoting entrepreneurship and innovation in India and has contributed to the growth of the startup ecosystem in the country.
8. National Initiative for Developing and Harnessing Innovations
The National Initiative for Developing and Harnessing Innovations (NIDHI) is an umbrella program launched by the Government of India in 2016 to promote innovation and entrepreneurship in the country. The program is implemented by the Department of Science and Technology (DST) and aims to create a robust innovation ecosystem in India.
The NIDHI program comprises several initiatives, including the Technology Business Incubator (TBI) program, the Seed Support System (SSS), the Entrepreneur in Residence (EIR) program, and the Industry Innovation Cluster (IIC) program, among others.
The TBI program provides support to startups and entrepreneurs by providing them with infrastructure, mentorship, funding, and other support services. The SSS program provides seed funding to startups to support early-stage innovation and product development. The EIR program aims to provide industry experience and expertise to entrepreneurs by placing them with leading companies as entrepreneurs-in-residence. The IIC program aims to create a platform for collaboration between industry, academia, and government to promote innovation and entrepreneurship.
Overall, the NIDHI program aims to create a supportive and enabling environment for innovation and entrepreneurship in India and has contributed significantly to the growth of the startup ecosystem in the country. The program has provided support and resources to several startups and entrepreneurs, helping them to develop innovative solutions and contribute to the economic growth of the country.
9. Biotechnology Ignition Grant
The Biotechnology Ignition Grant (BIG) is an initiative launched by the Department of Biotechnology (DBT) of the Government of India to promote early-stage biotech startups in the country. The program provides funding support to startups for proof-of-concept studies and early-stage validation of their technology-based ideas.
Under the BIG program, startups can receive funding support of up to ₹50 Lacs for a period of 18 months to 3 years. The program aims to encourage entrepreneurship in the biotech sector by supporting innovative ideas and solutions that have the potential for commercialization.
The program is implemented through a competitive grant process, and startups are evaluated based on the novelty, feasibility, and potential impact of their ideas. The program also provides mentorship and networking opportunities to startups to help them develop their ideas and bring them to the market.
The BIG program has been successful in promoting innovation and entrepreneurship in the biotech sector in India. Several startups have received funding and support through the program, and have developed innovative solutions in areas such as healthcare, agriculture, and environmental conservation. Overall, the BIG program is a significant initiative in promoting biotech entrepreneurship in the country and has contributed to the growth of the biotech industry in India.
10. Electronics Development Fund
The Electronics Development Fund (EDF) is an initiative launched by the Government of India in 2012 to promote innovation and entrepreneurship in the electronics sector in the country. The fund aims to provide funding support to startups, small and medium-sized enterprises (SMEs), and large corporations for the development of electronics hardware and software products and technologies.
The EDF is a "fund of funds" and provides funding support to various venture capital funds, angel investor networks, and incubators that, in turn, provide funding and support to electronics startups and entrepreneurs. The fund aims to promote innovation, create jobs, and enhance the competitiveness of the electronics industry in India.
Under the EDF, eligible startups and SMEs can receive funding support of up to 50% of their project cost, subject to a maximum of ₹50 Crores. The fund covers various areas of electronics, including hardware, software, and services, and supports projects in areas such as semiconductors, embedded systems, and the Internet of Things (IoT), among others.
The EDF has been successful in promoting innovation and entrepreneurship in the electronics sector in India. The fund has supported several startups and SMEs in developing innovative electronics products and technologies and has created a supportive ecosystem for electronics entrepreneurship in the country. Overall, the EDF is a significant initiative in promoting electronics entrepreneurship and innovation in India and has contributed to the growth of the electronics industry in the country.
Struggling to Raise Funding? Click here for expert assistance!