Top 10 Government Schemes for Startups in India – Our country is currently experiencing a startup boom, with the nation developing a strong business environment and a thriving entrepreneurial scene. 107 unicorn firms valued at $30 billion and over 99,000 startups make India the “Startup Hub” of the world. A number of programmes have been launched by Prime Minister Narendra Modi to support aspiring business owners.
The goal of the government initiatives is to help entrepreneurs grow and establish themselves in the global commercial arena by offering them financial support, subsidies, technical support, and other services. Support from the government enables businesses to get international reputation and draw in foreign investors.
Top Government Schemes for Startups in India 2024
Startup India was founded in 2016 with the intention of providing financial support to prospective entrepreneurs – following their clearance by the Department for Industrial Policy and Promotion.
The Startup India Scheme, which is powered by the DPIIT, provides potential business owners and organisations with financial assistance in the form of loans and subsidies. thereby generating income and more job opportunities for the Indian economy.
Top 7 Government Business Loan Schemes in India
List of Top 10 Government Startup Schemes in India
Atal Innovation Mission (AIM)
The Atal Innovation Mission, a Startup India initiative, was introduced by NITI Aayog in 2016. This initiative was started by the organisation to promote innovation via the development of new policies and initiatives that aid in the growth of various economic sectors. This government startup programme offers a platform for collaboration amongst various entrepreneurs.
AIM offers the selected companies ₹10 crores in capital over a five-year period under this startup plan. This programme is open to new organisations in the fields of health, agriculture, transportation, education, etc.
Startup India Seed Fund Scheme
In January 2021, the Indian government launched the Startup India Seed Fund Scheme with the aim of providing assistance to businesses that were still in their infancy.
A ₹945 Crore overall funding would finance 3600 enterprises and 300 incubators.
Up to ₹5 Crores in investment will be awarded to the selected entrepreneurs under this government startup initiative.
Grants of up to ₹20 Lakhs for concept development or demonstration and up to ₹50 Lakhs for expanding products or services will be awarded to startups.
Startup India Initiative
This startup initiative in India, which offers tax benefits to entrepreneurs for little more than five years, has recognised over 50,000 businesses as of June 2021. It additionally produced 5.5L jobs.
The maximum age for most eligible enterprises under this government startup programme is currently seven years, while the maximum age for biotechnology companies is ten years from the date of incorporation.
It is one of the best government-sponsored Startup India Schemes for entrepreneurs because of its many advantages.
Aatmanirbhar Bharat App Innovation Challenge
This government startup programme, which was unveiled in July 2020, urged Indian companies to work together and develop solutions that are manufactured in India for the benefit of people both domestically and internationally.
It also encouraged IT companies and startups to create innovative mobile apps in exchange for a sizable financial reward.
Applications such as YourQuote (writing app), Koo (Twitter comparable), and Chingari (TikTok equivalent) were ranked first (₹20L), second (₹15L), and third (₹10L), in that order.
eBiz Portal
The first government-to-business (G2B) internet forum is called eBiz. This Infosys creation assisted in modernising the country and functions as a hub for communication for all Indian business investors and entrepreneurs.
In five different Indian states—New Delhi, Tamil Nadu, Andhra Pradesh, Haryana, and Maharashtra—this platform has launched 29 services. The administration plans to gradually increase the scope of services offered by the programme.
Software Technology Park (STP)
A system known as the Software Technology Park (STP) is entirely focused on exporting computer software and technical services through physical media or communications infrastructure.
Distinctive course material is produced by concentrating on a single business or product, computer software in this case. The concept of Science Parks or Technology Parks, which are currently in use worldwide, and the idea of Export Processing Zones (EPZ) are part of the government programme plan.
Dairy Processing and Infrastructure Development Fund (DIDF)
For the long term benefit of farmers, it aids dairy cooperatives in keeping their competitive advantage.
With a total system expenditure of ₹11,184 Crores, the government announced the establishment of the Dairy Processing and Infrastructure Development Fund.
This programme is open to companies that produce milk, such as NDDB subsidiaries, state dairy federations, multi-state milk cooperatives, and others.
MUDRA Banks
In rural areas, the Micro Units Development Refinance Agency (MUDRA) facilitates credit availability and fosters the expansion of small businesses. This government program’s main objective is to support Indian small businesses who want to expand.
Up to ₹10 Lakhs in loans were made available by the MUDRA banks to small enterprises that are not corporations, microenterprises, or farms. The Mudra loan types are known as Kishor, Shishu, and Tarun.
Credit Guarantee Fund Trust for Micro and Small Enterprises
Among other loans, MSME companies can apply for zero-collateral business loans through the CGTMSE Startup India Scheme.
The intention is to make it possible for companies to obtain loans at steeply lowered interest rates without needing collateral.
In order to foster new business ventures and revitalise current ones, the government intends to collaborate with the Small Industries Development Bank of India (SIDBI) to provide up to ₹100 Lakhs in grants.
Credit Guarantee Scheme for Startups
Multiplier Grants Scheme (MGS)
The Department of Electronics and Information Technology created the Multiplier Grants Scheme (MGS) to promote research and development (R&D) collaborations between academic institutions and the tech sector.
The development of domestic goods and services is to be encouraged and supported by this programme.
Each initiative under this scheme is expected to have a duration of less than two years, and the government may finance up to ₹2 crore. Over a three-year period, industrial companies will incur costs of ₹4 crore.