The Indian government has been at the forefront of fostering entrepreneurship and innovation in the country through a range of comprehensive startup schemes. These initiatives have not only encouraged the growth of startups but also played a crucial role in shaping India’s thriving startup ecosystem. Here are some of the best startup schemes introduced by the Indian government that has been instrumental in empowering aspiring entrepreneurs.
Best Startup Schemes
Atal Innovation Mission (AIM)
In 2016, NITI Aayog introduced the Atal Innovation Mission (AIM) as part of the Startup India Scheme. The primary objective of AIM is to foster innovation by implementing innovative policies and programs that support growth across various economic sectors. AIM provides a platform for collaboration among stakeholders in the entrepreneurial ecosystem.
Through AIM, selected companies receive funding of approximately ₹10 Crores over five years. Startups operating in sectors such as health, agriculture, transportation, and education are eligible to apply for this initiative.
Startup India Seed Fund Scheme
Launched in January 2021, the Startup India Seed Fund Scheme aims to provide financial support to early-stage startups. With a budget of ₹945 Crores, the scheme is set to fund 3600 startups and 300 incubators. Entrepreneurs chosen for this scheme can receive funding of up to ₹5 Crores. Additionally, startups can receive grants of up to ₹20 Lakhs for concept development and up to ₹50 Lakhs for product/service expansion.
Startup India Initiative
The Startup India Initiative, which has recognized over 50,000 companies as of June 2021, has offered tax benefits to entrepreneurs for over five years. This initiative has also generated 5.5L jobs. The scheme accommodates startups up to 7 years old (and up to 10 years for biotech startups). With its diverse advantages, the Startup India Initiative stands out as a remarkable government-backed support system for business owners.
Aatmanirbhar Bharat App Innovation Challenge
Launched in July 2020, the Aatmanirbhar Bharat App Innovation Challenge encourages Indian startups to collaborate and create innovative solutions. Apps like Chingari, YourQuote, and Koo have received cash prizes for their contributions.
eBiz Portal
The eBiz Portal, developed by Infosys, is India’s first online platform for government-to-business collaboration. It offers 29 services in five states and serves as a communication hub for business investors and entrepreneurs.
Software Technology Park (STP)
The Software Technology Park (STP) facilitates the export and development of computer software and services. With a focus on computer software, STP draws inspiration from global models like Export Processing Zones and Science Parks.
Dairy Processing and Infrastructure Development Fund (DIDF)
DIDF assists dairy cooperatives in staying competitive. With an allocation of ₹11,184 Crores, it supports milk-producing businesses, cooperatives, and federations.
MUDRA Banks
The Micro Units Development and Refinance Agency (MUDRA) Yojana focuses on providing financial support to micro and small enterprises. It offers loans with minimal collateral requirements, allowing startups to access capital for business growth and expansion. The MUDRA Yojana has played a significant role in promoting entrepreneurship in rural and semi-urban areas.
Credit Guarantee Fund Trust for Micro and Small Enterprises
The CGTMSE Startup India Scheme provides collateral-free loans to MSMEs, facilitating business expansion at discounted interest rates.
Multiplier Grants Scheme (MGS)
Developed by the Department of Electronics and Information Technology, MGS encourages R&D partnerships between academia and the tech industry. The scheme funds projects with up to ₹2 Crore and encourages indigenous product and service development.
