A Guide to Startup India Schemes: Fund your business
Starting a business in India can be daunting, but with the help of Startup India schemes, it’s easier than ever. This guide covers everything you need to know to get started.
What is a Startup India Scheme?
The Indian government is making efforts to develop a robust startup ecosystem in the nation through a number of programs. They have launched a number of startup India schemes to support enterprises financially and provide them with the resources and assistance they need to succeed in the competitive world of business.
Various schemes that have been initiated to promote startups in India are:
Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem for nurturing innovation and entrepreneurship in the country. The initiative was launched by Prime Minister Narendra Modi on 2016. It is a comprehensive program that aims to create a conducive environment for startups to thrive. Under the program, qualifying enterprises can be designated as Startups by the Department for Industrial Policy and Promotion (DPIIT) in order to receive a slew of tax incentives, simpler compliance, IPR expediting and other benefits. The Startup India program has several benefits for startups, including funding support, tax benefits, and mentorship programs.
Startup India Seed Fund Scheme:
The Startup India Seed Fund Scheme was launched by Shri Piyush Goyal on 2021. This scheme provides funding to startups for proof of concept, prototype development, product trials, market entry and commercialization. A startup, recognized by DPIIT, incorporated not more than 2 years can apply for the scheme. They are eligible for grants of up to Rs. 20 lakhs for the validation of Proof of Concept, prototype development, or product trials, as well as investments of up to Rs. 50 lakhs through convertible debt for market entrance, commercialization, or scaling up.
Standup India Scheme:
Standup India Loan Scheme is a government initiative established by the Government of India in 2016 to encourage entrepreneurship. This scheme provides loans to entrepreneurs from SC/ST/OBC/women communities to start their own businesses. The initiative intends to offer loans for the establishment of a new, greenfield firm in the manufacturing, commerce, or service sectors ranging from Rs. 10 lakh to Rs. 1 crore.
Pradhan Mantri Mudra Yojana:
The Pradhan Mantri Mudra Yojana is a startup India scheme launched by the Hon’ble Prime Minister on 2015 to provide financial assistance to micro and small enterprises. The scheme offers loans of up to Rs 10 lakhs to eligible entrepreneurs. The scheme aims to promote entrepreneurship and provide financial aid to non-corporate, non-farm small and micro businesses.
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Atal Innovation Mission:
The Atal Innovation Mission is a startup India scheme set up by Niti Aayog in 2016 to promote innovation and entrepreneurship among students and startups. The mission aims to create a culture of innovation and entrepreneurship in the country. The scheme provides funding support, mentorship and training programs to startups and students. A total projected cost of Rs.2000+ crores would be incurred in the establishment and support of the beneficiaries.
Startups Intellectual Property Protection Scheme:
This scheme provides financial assistance to startups for filing and protecting their intellectual property rights. The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, oversees the administration of the SIPP program, which is carried out via a network of facilitators. The fundamental goal of the SIPP plan is to promote innovation and entrepreneurship in India by giving start-ups a supportive environment in which to protect and manage their intellectual property (IP) assets. Start-ups must be less than 10 years old from the date of incorporation in order to be eligible for the SIPP program. They must also have an original company concept or novel product that has the potential to develop a scalable business model with a high level of employability.
The Ministry of Electronics, Information, and Technology (MeitY) will introduce the SAMRIDH program in 2021 to help entrepreneurs in their early phases of development. The initiative would assist accelerators in identifying and fostering prospective IT-based businesses so they may grow and have a positive social impact on India’s issues. The first round of funding under the SAMRIDH initiative would be up to 40 lakh.
Qualcomm Semiconductor Mentorship Program
QSMP is available to startups operating in the Indian semiconductor market by Qualcomm, a global leader in mobile chipset manufacture, in collaboration with the Centre for Development of Advanced Computing (C-DAC). With this initiative, Qualcomm India intends to offer mentoring, technical training, and chances for industry outreach to Indian companies that are active in the semiconductor business. New companies having at least one year of experience in hardware and embedded design are eligible for this initiative.
Startup Leadership Program
The Startup Leadership Program (SLP) was introduced in India in 2016. It is a very exclusive 6-month world-class training program and lifetime association that was created to assist exceptional founders and innovators. 42 different industries are included in the eligibility, including but not limited to technology, life sciences, fin-tech, manufacturing, consumer goods, food and beverage, clean technology and social enterprise.
The startup ecosystem in India is growing rapidly, and is expected to continue to grow in the coming years. India is the world’s second most populous country, with over 1.3 billion people. With the growing youth population, India has a large and skilled workforce. The country is expected to become the world’s third largest economy by 2030. This provides a huge market opportunity for startups and Indian government is committed to supporting startups with such schemes to generate employment and contribute to the economy.
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