4 Government schemes to augment startups
“Take up one idea. Make that one idea your life, think of it, dream of it, live on that idea, let the brain, muscles, nerve, every part of your body be full of that idea and just leave every other idea alone. This is the way to success”, said by Swami Vivekananda.
India is on a track of establishing a robust startup ecosystem and for the purpose of promoting entrepreneurs the government has created a ministry committed to helping new ideas and businesses. The startup culture in India is going great guns and the ideation and innovation from variable perspectives and their implementation to obtain desired motives or outcomes is also augmented by various government schemes. The government made schemes are intended for the smooth conduction of processes involved to achieve the objective of a startup. The objective, in general, of a startup is to obtain an appropriate number of investors, create a rich customer base, promote new technology and knowledge etc. The Central Government of India has launched many schemes to augment entrepreneurship in India and also to help the flourishing startups financially.
The government’s imposed limitations and lockdown strategy as a preventative precaution against the devastating second wave of Coronavirus has had a negative impact on various industries, including hospitality, tourism, and aviation. The Indian government is working on a stimulus package for these industries to help them through their current economic difficulties. The Ministry of Finance is working on plans to help the tourism, aviation, and hospitality industries, as well as other small and medium-sized businesses, which are in dire need of assistance. The Finance Ministry has also eased cash management regulations and lifted limits to encourage departments to invest in capital projects in order to improve the economy. Some of the schemes that can really accelerate the growth of startups by helping and supporting them in variable manners are discussed below.
MICRO UNITS DEVELOPMENT REFINANCE AGENCY (MUDRA)
Micro Units Development Refinance Agency (MUDRA) banks were established to improve lending access and promote small business growth in rural areas. This scheme was created by the Indian government to help small enterprises. The government set aside INR 10,000 crores in 2015 to support the startup culture in India. Small businesses, non-corporate businesses, and non-farm small/micro enterprises can get up to INR 10 lakhs in startup loans from MUDRA banks. MUDRA is part of the Pradhan Mantri Mudra Yojana (PMMY), which began on April 8, 2015. The loans have been divided into three categories: Tarun, Shishu and Kishore. The assets are created by the bank’s financing, and there is a market for them.
STARTUP ACCELERATORS OF MINISTER OF ELECTRONICS, INFORMATION AND TECHNOLOGY FOR PRODUCT INNOVATION, DEVELOPMENT AND GROWTH (SAMRIDH)
The SAMRIDH scheme was developed by the Indian government to assist entrepreneurs obtain the essential funds and skill sets for future business growth. On August 25, 2021, Ashwini Vaishnaw, who was then the Minister of Electronics, Information, and Technology (MeitY), launched the SAMRIDH scheme, which stands for Startup Accelerators of MeitY for product Innovation, Development, and Growth, just over a week after announcing that the government would support startups in their early stages.
The SAMRIDH initiative aims to provide money to entrepreneurs as well as assistance in bringing together skill sets that will help them grow successfully. In the coming three years, the newly formed
SAMRIDH program wants to focus on the acceleration of roughly 300 start-ups by providing them with client connections, investor connections, and other prospects for worldwide expansion.
DAIRY PROCESSING AND INFRASTRUCTURE DEVELOPMENT FUND (DIDF)
In the Union Budget of 2017–18, the Indian government announced the establishment of the Dairy Processing and Infrastructure Development Fund under NABARD for the long-term benefit of farmers. This fund has a total capital of INR 8000 crores that will be invested over a three-year period (i.e. 2017–18 to 2019–20) Milk unions, multi-state milk cooperatives, state dairy federations, milk producing firms, and NDDB subsidiaries that match the project’s qualifying conditions can apply for a loan. The loan component would be 80% (maximum rate) with a 20% contribution from the final borrower (minimum rate). Borrowers will be charged a 6.5 percent annual interest rate on the loan. The repayment duration will be ten years. Loan repayment will be guaranteed by the respective state government. Furthermore, the state government will step in if the borrower is unable to contribute his or her share to the scheme.
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP (MSDE)
Previously, various ministries and government entities were tasked with supporting entrepreneurship. In 2014, the Prime Minister chose to allocate an entire ministry to the development of this industry, believing that skill development required more government support. Furthermore, gap-funding and skill-development efforts are expected to reach 500 million people by 2022.
The Ministry of Skill Development and Entrepreneurship, as well as other significant school and higher education institutions, will collaborate to develop the new educational format in order to make it more employment-oriented. The government is working to establish an environment in which Indian youngsters can be educated while still being able to find work. Senior ministry officials claim that through boosting production, manufacturing, and research in India, the youth’s knowledge and talents will become the fuel for developing a self-sufficient India.
The government schemes can be of great value if used with a proper plan and execution. Apart from the government schemes the startups in India also need a common ground to meet investors who are looking to invest in new ideas. Bolstart, a Pune based Social Network startup majorly focuses on bridging the networking gap between different Startups and Investors.
Through its social network and Investor Update system, Bolstart is committed to maintaining transparency, providing a good work culture with the help of employees and interns of diverse backgrounds and giving the necessary amount of creative freedom to its employees and interns.
