Government Schemes For Startup in India | Sarkari Yojana For Startups In India

Startup Government Schemes by the Government of India

The present decade will probably be remembered as India’s decade of entrepreneurship. The startup scene in the nation is booming, and the future seems incredibly promising for business owners. Records show that India has one of the world’s fastest-growing startup ecosystems, and both the size and importance of companies there are at all-time highs. Its expansion has been made possible by the Indian government’s ongoing support of startups by offering them incentives. They have introduced a number of Sarkari yojanas aimed at assisting startups during the past few years. The intention behind these plans and funds has been to foster an atmosphere that will allow businesses to prosper.
Hence, if you’re an aspiring businessperson in India looking to launch a company, you need to be aware of this Sarkari yojana for startups for new businesses. We’ll talk about the best government schemes for startups in India in this article, along with their advantages

Top 10 Government Schemes for Young business startups in India

These are the top ten government funding schemes for startups in India

Government schemes for startups in India
Schemes	Benefits
Startup India Initiative	encourage leadership and talents
Startup India Seed Fund Scheme	for entering the market and monetization
Pradhan Mantri Mudra Yojna	access to finance and loans
Atal Innovation Mission	Promotes top-tier innovation clusters
Credit Guarantee Trust Fund	Provide collateral-free loans
Venture Capital Assistance Scheme	help establish agricultural ventures
The Standup India Scheme	provides financial assistance in women
Design Clinic Scheme	encourage experimenting with novel ideas.
Raw Material Assistance Scheme	help entrepreneurs to find raw materials
Single Point Registration Scheme	offers a single-window method for submitting bids

Government Schemes For Startups in Details

1. Startup India Initiative

The largest government programme in India for startups is the Startup India Initiative. This programme, which was launched by Prime Minister Narendra Modi in 2016, covers more than 50,000 firms. To encourage leadership and talents, it includes a large selection of ebooks, coursework, and mentorship programmes. Important advantages of this plan include:

• an exemption of taxes
• cost-cutting
• 90-day simple business wind-up option.
• funding availability
• compliance with labour and environmental rules by self-certification
• Patent registration expedited with a charge reduction of 80%.

The following are the requirements for this federal programme.

• The new business must be a registered LLP, private limited company, or partnership firm.
• Any preceding fiscal year’s turnover shouldn’t have exceeded 100 crores.
• After 10 years of its inception, the startup must submit an application.

2. Startup India Seed Fund Scheme

Early-stage enterprises can receive financial support through the Startup India Seed Fund Scheme (SISFS) for entering the market, product trials, monetization, prototype development, and proof of concept development. The government has committed 945 crores in financing for this programme. It is anticipated that 3600 businesses will receive money from it. Grants of up to 20 lakh rupees will be used to finance trials or prototype development. Also, this programme seeks to advance the nation’s innovation culture and development. Below are the requirements for being eligible for this government programme for startups.

• DPIIT needs to recognise the starting.
• The idea or product must be technically sound, inventive, and scalable.
• Indian promoters are required to own 51% or more of the shares.

Within two years of its formation, the startup must apply for this programme. The USP of this government initiative is that it doesn’t require physical incubation and is industry-neutral.

3. Pradhan Mantri Mudra Yojna

PMMY is a programme designed as one of the government loan schemes for business startups in India, enabling MSMEs and startups to have access to finance and loans in order to sustain and expand their businesses. Starting in 2015, qualified applicants can apply for loans of up to 10 lakhs to cover their working capital needs. Five to seven years are allotted for debt payback under this programme. This government loan scheme for startup business in the PMMY are offered in one of three categories:

• Up to 50,000 Shishu
• Up to 5,000 Kishor
• Between 5 and 10 lakhs for Tarun

To be eligible for this programme, startups must be engaged in any non-farm industry, including manufacturing, services, or trading.

4. Atal Innovation Mission

This programme falls within a group of government initiatives for startups with the goal of fostering innovation and entrepreneurship across the nation. This plan mostly focuses on tier-2 and tier-3 cities. This programme also referred to as AIM, offers a framework for promoting top-tier innovation clusters, sectoral focus, big challenges, and talent efforts. Some of the primary efforts included in this strategy are innovation centres, Atal tinkering laboratories, community incubation centres, and innovation centres. The programme offers companies simple access to information and tools in addition to offering financial support and resources.

5. Credit Guarantee Trust Fund

Under this government loan schemes for startups, MSMEs and certain startups are eligible for collateral-free loans from the Credit Guarantee Trust Fund For Micro & Small Businesses (CGTMSE). These loans have maximum borrowing limits of INR 1 crore. It benefits farmers, SMEs, self-help organisations, retailers, and educational institutions. This plan increases the credit delivery system while facilitating loan flow in the startup industry. The CGTMSE is mostly for manufacturing and service companies. Loans made under this programme may be claimed as term loans or working capital.

6. Venture Capital Assistance Scheme

One of the most well-known government schemes for agricultural startups in India. Entrepreneurs can access interest-free debt and OD under this plan. They are able to cover up their operating capital in this way. The primary goal of this plan is to expand the agro-industry. The government set money for this programme at INR 10,000 crores. This fund provides interest-free debt financing worth INR 2,500 crore to small and marginal farmers. The advantages of this plan include:

• Cash advance and term loans under government loan schemes for startups in India
• help establish agricultural ventures
• a 5-year maximum extension on the payback period.
• arranges meetings, visits, and training to assist startups in starting an agribusiness.
• debt financing from financial institutions without interest.

7. The Standup India Scheme

This government scheme for startup india s one of the few government initiatives for startup companies that provides financial assistance in the form of loans to encourage business ownership among women, members of scheduled castes and tribes, and STs. The Prime Minister created the SIC in 2016 with the intention of promoting business in this area and creating jobs for women and people from poor castes. Banks will lend up to INR 1 crore to at least one woman and one SC or ST borrower. This government schemes for startup business in India offers a seven-year loan repayment schedule that is adjustable. Nevertheless, this programme is exclusively open to first-time business owners.

8. Design Clinic Scheme

Every MSME and new company in India is required to create a design-centric business strategy. The MSME Ministry created this programme to encourage experimenting with novel ideas. It strives to promote an environmentally sustainable environment through ongoing skill development and training. For joining design seminars and providing up to INR 3.75 lakhs to the firm to host the seminar, the government will grant up to INR 60,000 each. This plan is intended to help business owners network with like-minded people and understand the newest design trends and best practices.

9. Raw Material Assistance Scheme

Under the government of India schemes for startups, was introduced by the National Small Industries Corporation for new businesses in India (NSIC). It attempts to help entrepreneurs and businesses find raw materials. The programme allows participants to apply for low-interest loans and receive financial assistance with purchasing raw materials.

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10. Single Point Registration Scheme

This central government scheme for startups offers a single-window method for submitting bids to MSMEs and startups. National Small Industries Corporation managed this. With the help of this initiative, startups will find it simpler to present bids for government contracts. Participating in government procurement processes decreases the time, expense, and requirements for SRPS. To qualify for this programme, a company must not have been incorporated for a full year before applying.

Benefits of this government scheme for startups in India

While each new government programme in India has pros and cons, they all have some advantages in common. The following are the main advantages of India’s government startup programmes.

• Financial support
• Encourage funding
• provide loans without collateral
• impart mentoring
• tax-exempt status
• network possibilities
• Simple access to important materials

Conclusion

The government schemes for business startups discussed in this article serve a dual purpose: they assist and profit from already-existing startups and businesses while also motivating and inspiring aspiring businesspeople, students, and leaders from all walks of life to start their own companies and advance the cause of an Aatmanirbhar Bharat. The goal is to give India’s creative minds the freedom to conceive up innovative ideas, put them into action, and ultimately turn those ideas into thriving businesses. Given that India has the third-highest number of startups in the world, these measures appear to have achieved their intended goals.