To boost entrepreneurship, the Indian government has introduced many initiatives which will not only benefit enthusiastic entrepreneurs to work on their dreams but also will help startups achieve economies of scale by scaling their operations.
“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 Prime Minister Narendra Modi.
In this article we will try to highlight some of the important government schemes that would encourage more and more startups to incorporate in India:
Pradhan Mantri Mudra Yojana:
Pradhan Mantri Mudra Yojana(PMMY) was launched on April 8th 2015 to help small business get loans up to INR 10 lakh. Micro Units Development Refinance Agency (MUDRA) banks were set up under PMMY which provides loans at low rates to micro finance institutions and NBFCs, who in turn provide low interest loans to startups and MSMEs.
The minister of Electronics and Information Technology had launched ‘Start-up Accelerators of MeitY for pRoduct Innovation, Development and growth (SAMRIDH)’ programme. This scheme was launched to create a conducive platform for Indian software product startups to enhance their products. It focuses on accelerating the 300 startups by providing customer connect, investor connect, and international immersion in the next three years.
Startup India Seed Fund Scheme:
This scheme was launched by Prime Minister Narendra Modi on January 16th 2021. Startup India Seed Fund Scheme (SISFS) - worth INR 1000 Cr, aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization.
A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE):
ASPIRE was launched in 2015 which is a Government of India initiative and promoted by the Ministry of Micro, Small and Medium Enterprises (MSME). This scheme aims to offer proper knowledge to the entrepreneurs to start with their business and emerge as employers.
ATAL Innovation Mission:
ATAL Innovation Mission (AIM) is the Government of India’s flagship initiative to promote a culture of innovation and entrepreneurship in the country. Under ATAL innovation Mission, Atal Tinkering Lab program was launched to promote creative and innovative mindset in schools. AIM has been establishing Atal Incubation Centres (AIC), to foster and support world class innovation, dynamic entrepreneurs who want to build scalable and sustainable enterprises
The Ministry of Skill Development and Entrepreneurship was set up to cater to the needs of startups and young entrepreneurs.
Other than these initiatives there is also tax rebate benefit on profit for a period of three years in a block of seven years to startups with a turnover of less than INR 25 Cr. From May 24th 2018 onwards, there is a total tax exemption for angel investors who invest their money in startups.
All of these initiatives are creating a lollapalooza effect on the Indian startup ecosystem. Such bold efforts by the Indian government have paved a way for Indian entrepreneurs to work on their dreams and it is also the reason why the Indian startup segment is booming.
We at Convey Connect have a same dream of revolutionising the startup ecosystem by connecting early startups with High Networth Individuals (HNIs). So if you are aspiring to raise funds for your startup or you’re willing to invest in these early startups then contact us as soon as possible.