The startup ecosystem in India is expanding day by day, thanks to the many startup India schemes launched in recent years. These schemes provide encouragement to the budding entrepreneurs in the country. There is no doubt that government is trying to bring the start-up culture to each state.
The Startup India plan was much hyped but most of us don’t know about the successful startup India schemes which were launched even before the launch of this plan. Here is a list of 7 such schemes which you should definitely know about.
- Multiple Grants Scheme (MGS)
Since the internet and artificial intelligence are the hottest start-up trends these days, you should definitely know about the Multiple Grants Scheme by the Indian government. Headed by DeitY, this scheme is applicable for the electronics and information technology projects. Any project under this scheme should have a deadline of maximum 2 years and the upper limit on the government grant is INR 2 crores.
- Software Technology Park Scheme (STP)
Indian software companies can take advantage of this scheme. The main aim of this scheme is to encourage software exports. Since we have talented software engineers in the country, this is one of those startup India schemes which would be successful if used to its full potential. This scheme provides facilities to IT industry for undertaking the development of IT enabled services and software development for 100% exports using data communication links. STP units can also provide commercial training. The IT industries under this scheme are offered certain concession in levies, duties, and taxes.
- Modified Special Incentive Package Scheme (M-SIPS)
This scheme is again headed by the DeitY and is applicable to the electronics and information technology projects. However, it mainly focusses on electronics manufacturing. As per the scheme, the government would provide 20% capital subsidy for the units located in SEZs and 25% for those located in non-SEZs.
- The Venture Capital Assistance Scheme
This is one of the most important startup India schemes and it focuses on agriculture and allied produce. Headed by the Small Farmers’ Agri-Business Consortium, this scheme helps farmers and self-help groups to set up business projects related to agriculture. The loan provided under this scheme is interest-free.
- Pradhan Mantri Mudra Yojana (PMMY)
This is one of the recently launched startup India schemes. And it is headed by MUDRA (Micro Units Development and Refinance Agency Ltd.). The aim of this scheme is to provide refinancing support to the banks which are lending money to micro units. There are 3 categories under this scheme – Shishu (covers small loans of up to INR 50000), Kishor (covers medium sized loans of INR 50000 – INR 5 lakhs) and Tarun (covers loans of INR 5 lakhs – INR 10 lakhs). This is initiated by the government of India to fund non-corporate, non-farm sector income generating activities of small and micro enterprises who have credit needs below INR 10 Lakh
- Atal Incubation Centers (AIC)
This scheme covers a wide range of industries such as manufacturing, energy, transport chemicals, healthcare, agriculture, education, water and sanitization, textiles and much more. Companies and individuals/group of individuals can form Atal Incubation Centers under this scheme. All the AICs come under Atal Innovation Mission which is again a great mission started to boost up the startup culture in India. Each AIC can avail up to INR 10 crores from the government for a maximum time period of 5 years to cover the operational and capital expenditures to establish the AIC.
- Stand Up India
This scheme focusses on boosting up the startup economy and along with that, it ensures empowerment of the socially backward classes and women in the country. As per this scheme, each bank branch should provide a start-up loan to either a woman entrepreneur or an SC/ST entrepreneur for setting up a greenfield enterprise or a first-time venture, particularly in the services, manufacturing and trading sectors.This scheme has a heavy social impact. The loan amount can be anywhere between INR 10 Lakh to 1 crore.