5 Government Schemes For Startups In India: Money Matters

In recent years, India has emerged as a hub for innovation and entrepreneurship, fueled by a vibrant startup ecosystem that is making waves not just in India but around the world. Recognising the potential of startups to drive economic growth, generate employment, and foster innovation, the Indian government has introduced several schemes and initiatives aimed at supporting startups across various stages of their lifecycle. Take a look at these government schemes if you are looking to begin a startup in India:

5 Government Schemes For Startups In India

1. Startup India Initiative

Launched in January 2016 by Prime Minister Narendra Modi, the Startup India initiative is perhaps the most popular program aimed at nurturing and promoting startups in India. The key objectives of Startup India include simplifying the regulatory environment, providing funding support, and offering incentives to boost entrepreneurship. As per the Startup India Initiative, the flagship initiative of the Government of India's official website, “The Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Startup India Team, which reports to The Department for Promotion of Industry and Internal Trade (DPIIT).”

2. Atal Innovation Mission (AIM)

Launched by NITI Aayog, Atal Innovation Mission (AIM), the Government of India’s flagship initiative aims to promote a culture of innovation and entrepreneurship among students and young entrepreneurs. “AIM’s objective is to develop new programmes and policies for fostering innovation in different sectors of the economy, provide platforms and collaboration opportunities for different stakeholders, and create an umbrella structure to oversee the innovation & entrepreneurship ecosystem of the country”, states the official website of Atal Innovation Mission (AIM). It includes initiatives such as:

i) Atal Incubation Centers (AICs): AIM has established AICs across India to provide mentorship, networking opportunities, collaborations, and infrastructure support to startups.

ii) Atal Tinkering Labs (ATLs): These labs are aimed at fostering innovation and creativity among school children by providing them with access to technology tools and equipment.

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3. Pradhan Mantri Mudra Yojana (PMMY)

PMMY provides financial support to micro-enterprises and small businesses, including startups, by offering collateral-free loans through various financial institutions. Launched in 2015, PMMY empowers non-corporate, non-farm small/micro enterprises with collateral-free loans ranging up to Rs 10 lakh. According to the Pradhan Mantri MUDRA Yojana (PMMY) official website, it states that “These loans are classified as MUDRA loans under PMMY. These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs.” This scheme particularly benefits entrepreneurs from marginalised and underprivileged sections of society.

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4. Startup India Seed Fund Scheme

Seed fund schemes provide funding for startups at their seedling stage, meaning their initial phase. Every entrepreneur must understand what seed funding entails and why it is essential for building their businesses or enterprises. As per the Startup India Seed Fund Scheme official website, “Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialisation. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or seek loans from financial institutions.”

5. Dairy Processing and Infrastructure Development Fund (DIDF)

According to Dairy Processing and Infrastructure Development Fund (DIDF) official website, "The Scheme envisages providing loan assistance to State Dairy Federations, District Milk Unions, Milk Producers Companies, Multi State Cooperatives and NDDB subsidiaries across the country who are termed as Eligible End Borrowers (EEBs). To modernise the milk processing plants and machinery and to create additional infrastructure for processing more milk." It aims to support producer-owned and controlled institutions in expanding their share of milk production, offering rural milk producers greater opportunities for ownership, management, and access to organized milk markets.

Note: You are advised to seek professional advice from financial advisors before making any investment decisions who specialise in financial investments and can provide valuable insights and guidance.

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