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Schemes For Startups In India: Know These Govt Initiatives That Promote Entrepreneurs

By: Namit Singh Sengar

News18.com

Last Updated: January 24, 2023, 16:07 IST

New Delhi, India

The Government has established FFS to meet the funding needs of startups. (Representative image)

The Government has established FFS to meet the funding needs of startups. (Representative image)

The Startup India program has been primarily set up to provide an enabling environment for the startups.

India’s startup space has seen a rapid rise in terms of numbers and impact. Number of recognised startups by the government has gone up from 452 in 2016 to 84,012 in 2022 (as on November 30 2022).

49% of startups are from Tier II and Tier III. The enabling environment for the startup community has been facilitated by several government initiatives from time to time.

Among other key actions, the Startup India program has been primarily set up to provide an enabling environment for the startups.

From providing funding to tax incentives, from support on intellectual property rights to eased public procurement, from enabling regulatory reforms to access to international fests and events, Startup India program has been a key policy initiative of the government.

Under Startup India initiative, to provide capital at various stages of the business cycle of a startup, the Government has implemented Fund of Funds for Startups (FFS) and Startup India Seed Fund Scheme (SISFS).

Both the Schemes are implemented on Pan-India basis.

Fund of Funds for Startups (FFS) Scheme: The Government has established FFS to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS.

Startup India Seed Fund Scheme (SISFS): The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialisation.

Other programs

Credit Guarantee Scheme for Startups (CGSS): The Government has established the Credit Guarantee Scheme for Startups for providing credit guarantees to loans extended to DPIIT recognised startups by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs) and Venture Debt Funds (VDFs) under SEBI registered Alternative Investment Funds.

CGSS is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. DPIIT recognised startups.

Atal Innovation Mission (AIM): With an objective to serve as a platform for promotion of Innovation Hubs, Grand Challenges, startup businesses and other self-employment activities, particularly in technology driven areas.

Faster Exit for Startups: With an objective to make it easier for startups to wind up operations.

Startup India Hub: With an objective to create a single point of contact for the entire startup ecosystem and enable knowledge exchange and access to funding.

Tax Exemptions to startups for 3 Years: With an objective to promote the growth of startups and address working capital requirements.

Other schemes;

  • Stand-Up India: For financing SC/ST and/or women entrepreneurs
  • Pradhan Mantri Mudra Yojana
  • Self Employment Lending Schemes- Credit Line - 1 - Micro Financing Scheme
  • Support for International Patent Protection in Electronics and & Information Technology (SIP-EIT)
  • Aspire - A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship

Apart from the above mentioned initiatives, there are many schemes, which are specific to different sectors and requirements of entrepreneurs.

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first published:January 24, 2023, 15:58 IST
last updated:January 24, 2023, 16:07 IST
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