Monday, August 3, 2020

Government schemes for startups in India [2020 Updated]

The Takeaway:

India is in the midst of a startup revolution, the size, and scope of which has exceeded all previous levels due to government support.

Introduction

NASSCOM has already identified India as the world’s fastest-growing startup ecosystem and the third-largest in the world. Now is a perfect moment to launch your company and make your vision a reality if you’re a born entrepreneur. Over the past two years, India’s government has initiated numerous initiatives and services aimed at encouraging startups like V Resorts and fostering the ethos of Indian entrepreneurship.

 

Government schemes for startups

1. Atal Incubation Centre (AIC) 

Started by NITI Aayog in 2016, AIC is a groundbreaking funding system intended to help entrepreneurs by covering their working capital costs. Funding would be given to chosen startups up to Rs 10 crore for five years.

Students, researchers, or newly founded organizations from the fields of transport, safety, electricity, education, agriculture, water, and sanitation like Bharatjal may apply. AICs may be set up either in public-supported organizations or in private-sector financed organizations or the Public-Private Partnership (PPP) type.

 

2. NewGEN IEDC

In 2017 a New Generation Innovation and Entrepreneurship Development Center (NewGen IEDC) initiative was launched by the Department of Science and Technology (DST). The curriculum is being initiated by the Entrepreneurship Research Institute of India (EDII), Ahmedabad.

This supports “initiatives focused on information and technologies” by offering mentoring, support, and help. For academic schools, the NewGen IEDCs are developed in which students can operate over five years on creative ventures. The DST resulted in producing 14 new gene IEDCs in the first year.

 

3. The Women Entrepreneurship Platform (WEP)

Launched by the NITI Aayog, the WEP is built for aspiring and established women entrepreneurs like Vandana Luthra throughout India.

It is divided into three parts:

  • Iccha Shakti: inspire women entrepreneurs to start their companies.
  • Gyaan Shakti: Providing information and environment
  • Karma Shakti: Offers hands-on assistance to entrepreneurs to set up or grow their companies.

Women at the stage of ideation and proven entrepreneurs will register for the program. Corporates, Charities, associations, and incubators can also refer if they help women in some way whatsoever.

 

4. Swarjokar Credit Card

Swarojgar credit card is valid for small artisans, including microentrepreneurs, mall artisans, weavers from Handloom, service industries, fishermen, self-employed individuals, Rickshaw operators, other micro-businesses.

This scheme provides for a loan of Rs 25,000 per individual, and the interest and margin shall be in line with RBI ‘s norm.

 

5. The raw material assistance scheme

To enable manufacturers to enhance their goods’ efficiency, this program is funded by the National Small Industries Corporation for the procurement of indigenous and manufactured raw materials.

The policy involves inventory purchases over 180 days in bulk and cash reductions. The system will only be applied for by contractors in the micro, small and medium sectors—the strategy.

 

6. Sustainable Finance Scheme

This scheme provides financial help in the form of loans for ventures for sustainable growth, which leads to energy conservation and cleaner output.

Both sustainable programs are relevant, such as solar energy initiatives, energy conservation office, eco microfinance, greenhouses, environmentally safe marking, etc.

Disclaimer: The article reflects the opinions of the author and is not representative of CloudStory or TimesNext’ views.
The article does not offer any investment advice. User discretion is advised. Extensive and diligent research should be carried out by the reader before making a decision or buying any product or services.

Aakriti Suri
Aakriti Suri
Aakriti Suri is a Commerce graduate who aims at enlightening people through her writings. Apart from being a content writer, she loves to chit-chat and binge-watch.

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