50+ Government Schemes That Every Entrepreneur Should Know About

Close to 4,400 technology startups exist in India and the number is expected to reach over 12,000 by 2020. India is also at third place behind US and Britain in terms of the number of startups.

Startup journey has many ups and downs where support of different kind is needed. There are many Government schemes which can help make this journey smoother, but the problem is that not many people know about them. Thanks to Inc42 which has created an exhaustive list of 50+ such schemes floated by Indian Government.

1. Name of the scheme-The Venture Capital Assistance Scheme

Industry applicable-Agriculture

Headed by-Small Farmers’ Agri-Business Consortium (SFAC)

Fiscal incentive (*t&c applied)-The quantum of SFAC Venture Capital Assistance will depend on the project cost, location and the promoter’s status.

2. Name of the scheme-Technology Development Programme (TDP)

Industry applicable-Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, Internet of Things, nanotechnology, social impact, food & beverages, pets & animals, textiles & apparel.

Headed by-Science and Engineering Research Board (SERB)

Fiscal incentive (*t&c applied)-Provided support for project staff salaries, equipment, supplies and consumables, contingency expenditure, patent filing charges, outsourcing charges, etc.

3. Name of the scheme-Udaan Training Programme For Unemployed Youth Of J&K

Industry applicable-Education, human resources

Headed by-National Skill Development Corporation (NSDC)

Fiscal incentive (*t&c applied)-INR 750 Cr has been earmarked for the implementation of the scheme over a period of five years

4. Name of the scheme-Sustainable Finance Scheme

Industry applicable-Green Energy, Non-renewable Energy, Technology Hardware, Renewable Energy

Headed by-Small Industries Development Bank of India (SIDBI)

Fiscal incentive (*t&c applied)-Suitable assistance by way of term loan / working capital to ESCOs implementing EE / CP / Renewable Energy project provided.

5. Name of the scheme-Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)

Industry applicable-IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI

Headed by-Department of Electronics and Information Technology (DeitY)

Fiscal incentive (*t&c applied)-Up to INR 15 Lakhs per invention or 50% of the total expenses incurred in filing and processing of the patent application upto grant, whichever is lesser.

6. Name of the scheme-Startup assistance Scheme

Industry applicable-Sector-agnostic

Headed by-Small Industries Development Bank of India (SIDBI)

Fiscal incentive (*t&c applied)-The financial assistance provided is need-based, subject to a maximum of INR 200 Lakhs and equity kicker

7. Name of the scheme-Stand Up India

Industry applicable-Sector-agnostic

Headed by-Small Industries Development Bank of India (SIDBI)

Fiscal incentive (*t&c applied)-Composite loan between INR 10 Lakhs and INR 1 Cr to cover 75% of the project cost can be taken up, inclusive of term loan and working capital.

8. Name of the scheme-Software Technology Park (STP) Scheme

Industry applicable-IT services, fintech, enterprise software, analytics, AI

Headed by-Software Technology Parks of India (STPI)

Fiscal incentive (*t&c applied)-Sales in the DTA up to 50% of the FOB value of exports is permissible and depreciation on computers at accelerated rates up to 100% over 5 years is permissible.

9. Name of the scheme-Single Point Registration Scheme (SPRS)

Industry applicable-Sector-agnostic

Headed by-National Small Industries Corporation (NSIC)

Fiscal incentive (*t&c applied)-Micro and small enterprises will get exemption from payment of Earnest Money Deposit (EMD) and will be issued tender sets free of cost.

10. Name of the scheme-Science and Technology of Yoga and Meditation (SATYAM)

Industry applicable-Healthcare & life sciences

Headed by-Department of Science and Technology (DST)

Fiscal incentive (*t&c applied)-Not specified.

11. Name of the scheme-Scheme to Support IPR Awareness Seminars/Workshops in E&IT Sector

Industry applicable-Healthcare & life sciences

Headed by-IT services, analytics, enterprise software, technology hardware, Internet of Things, AI

Fiscal incentive (*t&c applied)-Organisations are provided with a grant between INR 2 Lakhs to INR 5 Lakhs.

12. Name of the scheme-Scale-up Support to Establishing Incubation Centres

Industry applicable-Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, Fintech, Internet of Things, nanotechnology, social impact, food & Beverages, pets & animals, textiles & apparel.

Headed by-NITI Aayog

Fiscal incentive (*t&c applied)-Grant-in-aid support of INR 10 Cr will be provided in two annual instalments of INR 5 Cr each.

13. Name of the scheme-SPARSH (Social Innovation programme for Products: Affordable & Relevant to Societal Health)

Industry applicable-Healthcare & life sciences

Headed by-Biotechnology Industry Research Assistance Council (BIRAC)

Fiscal incentive (*t&c applied)-The loan and grant are provided according to the start-up stage.

esearch Assistance Council (BIRAC)

Fiscal incentive (*t&c applied)-The loan and grant are provided according to the start-up stage.

14. Name of the scheme-SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises (SMILE)

Industry applicable-Sector-agnostic

Headed by-Small Industries Development Bank of India (SIDBI)

Fiscal incentive (*t&c applied)-The loan amount granted is based on category entrepreneur lies in. (General, women, SC/ST/PWD)

15. Name of the scheme-Revamped Scheme of Fund for Regeneration of Traditional

Industry applicable-Sector-agnostic

Headed by-Khadi and Village Industries Commission

Fiscal incentive (*t&c applied)-Funds limited to a maximum of INR 8 Cr to support soft, hard and thematic interventions are provided.

16. Name of the scheme-Raw Material Assistance

Industry applicable-Sector-agnostic

Headed by-National Small Industries Corporation (NSIC)

Fiscal incentive (*t&c applied)-MSMEs will be helped to avail economics of purchases like bulk purchase, cash discount, etc. Also, all the procedures, documentation and issue of letter of credit in case of imports will be taken care of.

17. Name of the scheme-Rapid Grant for Young Investigator (RGYI)

Industry applicable-Healthcare & Life sciences

Headed by-Department of Biotechnology (DBT)

Fiscal incentive (*t&c applied)-RGYI provides start-up grants to young investigators across the country working in different settings such as central government funded institutions, state government-funded university departments, scientists at DSIR-approved private institutions etc.

18. Name of the scheme-Promoting Innovations in Individuals, Startups and MSMEs (PRISM)

Industry applicable-Sector-agnostic

Headed by-Council of Scientific & Industrial Research

Fiscal incentive (*t&c applied)-Support grant is provided under categories such as PRISM Phase I, PRISM Phase II and PRISM-R&D Proposals.

19. Name of the scheme-Pradhan Mantri Mudra Yojana (PMMY)

Industry applicable-Sector-agnostic

Headed by-Micro Units Development and Refinance Agency Ltd. (MUDRA)

Fiscal incentive (*t&c applied)-

MUDRA offers incentives through these interventions:

Shishu: covering loans upto INR 50,000/-

Kishor: covering loans above INR 50,000/- and upto INR 5 Lakhs

Tarun: covering loans above INR 5 Lakhs and upto INR 10 Lakhs

20. Name of the scheme-Performance & Credit Rating Scheme

Industry applicable-Sector-agnostic

Headed by-National Small Industries Corporation (NSIC)

Fiscal incentive (*t&c applied)-The incentives are proportional to the turnover of the MSMEs

21. Name of the scheme-NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)

Industry applicable-Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, Fintech, Internet of Things, nanotechnology, social impact, food & Beverages, pets & animals, textiles & apparel.

Headed by-NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC)

Fiscal incentive (*t&c applied)-Provide a limited, one-time, non-recurring financial assistance, up to a maximum of INR 25 Lakhs.

22. Name of the scheme-National Science & Technology Management Information System (NSTMIS)

Industry applicable-Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, Fintech, Internet of Things, nanotechnology, social impact, food & beverages, pets & animals, textiles & apparel.

Headed by-Department of Science and Technology (DST)

Fiscal incentive (*t&c applied)-Grant-in-aid are provided for projects. Also, overheads on projects are provided at the rate of 10% of the total project cost for educational institutions and NGOs and 8% for laboratories & institutions under Central Government departments/agencies

23. Name of the scheme-National Clean Energy Fund (NCEF) Refinance

Industry applicable-Renewable energy, clean energy, green energy plants.

Headed by-Indian Renewable Energy Development Agency (IREDA)

Fiscal incentive (*t&c applied)-REDA would provide funds received from NCEF by way of refinance to scheduled commercial banks and financial institutions (including IREDA). Maximum refinance amount INR 15 Cr per project.

24. Name of the scheme-National Awards (Individual MSEs)

Industry applicable-Sector-agnostic

Headed by-Office of the Development Commissioner (MSME)

Fiscal incentive (*t&c applied)-The Selected National awardee is facilitated with a cash prize of INR 1 Lakh, INR 75K, INR 50K in order of ranking.

25. Name of the scheme-Multiplier Grants Scheme (MGS)

Industry applicable-IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI

Headed by-Department of Electronics and Information Technology (DeitY)

Fiscal incentive (*t&c applied)-Limited to a maximum of INR 2 Cr per project and the duration of each project should, preferably, be less than two years. For industry consortium these figures would be INR 4 Cr and three years.

26. Name of the scheme-Modified Special Incentive Package Scheme (M-SIPS)

Industry applicable-Technology hardware, Internet of Things, aeronautics/aerospace & defense, automotive, non-renewable energy, renewable energy, green technology and nanotechnology

Headed by-Department of Electronics and Information Technology (DeitY)

Fiscal incentive (*t&c applied)-Majorly provides capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in electronics manufacturing.

27. Name of the scheme-MSME Market Development Assistance

Industry applicable-Sector-agnostic

Headed by-Office of the Development Commissioner (MSME)

Fiscal incentive (*t&c applied)-Majorly provides capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in electronics manufacturing.

28. Name of the scheme-Loan for Rooftop Solar PV Power Projects

Industry applicable-Renewable energy, clean energy, green energy

Headed by-Indian Renewable Energy Development Agency (IREDA)

Fiscal incentive (*t&c applied)-The quantum of loan from the IREDA shall be 70% of the project cost with minimum promoter’s contribution of 30%. IREDA may extend the loan upto 75% of the project cost.

29. Name of the scheme-International Cooperation (IC) Scheme

Industry applicable-Travel & tourism, human resources, events, advertising

Headed by-Office of the Development Commissioner (MSME)

Fiscal incentive (*t&c applied)-The incentives vary as per the organisation category.

30. Name of the scheme-Infrastructure Development Scheme

Industry applicable-Sector-agnostic

Headed by-National Small Industries Corporation (NSIC)

Fiscal incentive (*t&c applied)-For a deposit of six months refundable rent, an office space of 467 sq.ft. to 8,657 sq.ft. is provided.

31. Name of the scheme-Industry Relevant R&D

Industry applicable-Sector-agnostic

Headed by-Science and Engineering Research Board (SERB)

Fiscal incentive (*t&c applied)-The industry share should not be less than 50% of the total budget. Overhead is provided to the academic partner. The SERB share shall not exceed INR 50 Lakhs for a project.

32. Name of the scheme-Industry Innovation Programme on Medical Electronics (IIPME)

Industry applicable-Healthcare & life sciences

Headed by-Biotechnology Industry Research Assistance Council (BIRAC)

Fiscal incentive (*t&c applied)-The loan and grant are provided according to the start-up stage.

33. Name of the scheme-IREDA Scheme For Discounting Energy Bills

Industry applicable-Renewable energy, clean energy, green energy

Headed by-Indian Renewable Energy Development Agency (IREDA)

Fiscal incentive (*t&c applied)-Upto 75% of the invoice value pending for maximum six months from the date of application subject to a maximum bill discounting facility of INR 20 Cr. The minimum amount of transaction covering a set of bills shall not be less than INR 1 Cr.

34. Name of the scheme-High Risk-High Reward Research

Industry applicable-Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, Fintech, Internet of Things, nanotechnology, social impact, food & beverages, pets & animals, textiles & apparel.

Headed by-Science and Engineering Research Board (SERB)

Fiscal incentive (*t&c applied)-The research grant covers equipment, consumables, contingency and travel apart from overhead grants. No budget limit is prescribed for these projects.

35. Name of the scheme-Growth Capital and Equity Assistance

Industry applicable-Sector-agnostic

Headed by-Small Industries Development Bank of India (SIDBI)

Fiscal incentive (*t&c applied)-MSMEs are helped to leverage equity / sub debt assistance from SIDBI for raising higher debt funds.

36. Name of the scheme-Extra Mural Research Funding

Industry applicable-Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, Internet of Things, nanotechnology, social impact, food & beverages, pets & animals, textiles & apparel.

Headed by-Science and Engineering Research Board (SERB)

Fiscal incentive (*t&c applied)-The research grant covers equipment, consumables, contingency and travel apart from overhead grants. No budget limit is prescribed.

37. Name of the scheme-Enhancement of Competitiveness in the Indian Capital Goods Sector

Industry applicable-Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defense, agriculture, automotive, construction, non-renewable energy, renewable energy, green technology, Internet of Things, nanotechnology, social impact, food & beverages, textiles & apparel.

Headed by-Department of Heavy Industries (DHI)

Fiscal incentive (*t&c applied)-One time grant up to 25% of the cost of the technology acquisition of each technology. Maximum amount given shall not exceed INR 10 Cr

38. Name of the scheme-Electronic Development Fund (EDF) Policy

Industry applicable-IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI, nanotechnology

Headed by-Department of Electronics and Information Technology (DeitY)

Fiscal incentive (*t&c applied)-Companies will get risk capital from “Daughter Funds” set up by Electronic Development Fund (EDF).

39. Name of the scheme-Dairy Entrepreneurship Development Scheme

Industry applicable-Agriculture, pets & animals, social impact, food & beverages.

Headed by-National Bank for Agriculture and Rural Development (NABARD)

Fiscal incentive (*t&c applied)-The incentives differ with respect to the cost of the required equipment or establishment of the facilities

40. Name of the scheme-Credit Linked Capital Subsidy for Technology Up gradation

Industry applicable-Sector-agnostic

Headed by-Office of the Development Commissioner (MSME)

Fiscal incentive (*t&c applied)-Ceiling on loans under the scheme has been raised from INR 40 Lakhs to INR 1 Cr while the rate of subsidy has been enhanced from 12% to 15%.

41. Name of the scheme-Credit Guarantee

Industry applicable-Sector-agnostic

Headed by-Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Fiscal incentive (*t&c applied)-Both term loans and/or working capital facility up to INR 100 Lakhs per borrowing unit are being provided

42. Name of the scheme-Credit Enhancement Guarantee Scheme

Industry applicable-Renewable energy, clean energy, green energy

Headed by-Indian Renewable Energy Development Agency (IREDA)

Fiscal incentive (*t&c applied)-Provide credit enhancement by way of unconditional and irrevocable partial credit guarantee to enhance the credit rating of the proposed bond

43. Name of the scheme-Coir Udyami Yojana

Industry applicable-Agriculture

Headed by-Coir Board

Fiscal incentive (*t&c applied)-The amount of bank credit will be 55% of the total project cost after deducting 40% margin money (subsidy) and owner’s contribution of 5% from beneficiaries

44. Name of the scheme-Bridge Loan Against MNRE Capital Subsidy

Industry applicable-Renewable energy, clean energy, green energy

Headed by-Bridge Loan Against MNRE Capital Subsidy

Fiscal incentive (*t&c applied)-The projects will get up to 80% of the existing pending eligible capital subsidy claim, as verified by the IREDA with a minimum loan assistance of INR 20 Lakhs

45. Name of the scheme-Bridge Loan Against Generation-Based Incentive (GBI) Claims

Industry applicable-Renewable energy, clean energy, green energy

Headed by-Indian Renewable Energy Development Agency (IREDA)

Fiscal incentive (*t&c applied)-A minimum loan assistance of INR 20 Lakhs is provided under this scheme

46. Name of the scheme-Biotechnology Industry Partnership Programme (BIPP)

Industry applicable-Healthcare & life sciences

Headed by-Biotechnology Industry Research Assistance Council (BIRAC)

Fiscal incentive (*t&c applied)-Support is provided for high-risk, accelerated technology development especially in futuristic technologies

47. Name of the scheme-Biotechnology Ignition Grant (BIG)

Industry applicable-Healthcare & life sciences

Headed by-Biotechnology Industry Research Assistance Council (BIRAC)

Fiscal incentive (*t&c applied)-Up to INR 50 Lakhs for research projects with a commercialisation potential with duration of up to 18 months are provided

48. Name of the scheme-Bank Credit Facilitation Scheme

Industry applicable-Sector-agnostic

Headed by-National Small Industries Corporation (NSIC)

Fiscal incentive (*t&c applied)-N/A

49. Name of the scheme-Ayurvedic Biology Program

Industry applicable-Chemicals, healthcare & life sciences, nanotechnology, social impact

Headed by-Science and Engineering Research Board (SERB)

Fiscal incentive (*t&c applied)-Support is primarily given to encourage participation of young scientists and research professionals in such events along with nominal support for pre-operative expenses

50. Name of the scheme-Atal Tinkering Laboratories

Industry applicable-

Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, Internet of Things, nanotechnology, social impact, food & Beverages, pets & animals, textiles & apparel.

Eligibility: Schools (Grade VI – XII) managed by the Government, local body or private trusts/society can apply to set up an ATL.

Headed by-Atal Innovation Mission

Fiscal incentive (*t&c applied)-AIM will provide grant-in-aid that includes a one-time establishment cost of INR 10 Lakhs and operational expenses of INR 10 Lakhs for a maximum period of five years to each ATL

51. Name of the scheme-Atal Incubation Centres (AIC)

Industry applicable-

Chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defense, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, fintech, Internet of Things, nanotechnology, social impact, food & beverages, pets & animals, textiles & apparel

Headed by-Atal Innovation Mission (AIM)

Fiscal incentive (*t&c applied)-AIM will provide a grant-in-aid of INR 10 Cr to each AIC for a maximum of five years

52. Name of the scheme-Assistance to Professional Bodies & Seminars/Symposia

Industry applicable-

Events, chemicals, technology hardware, healthcare & life sciences, aeronautics/aerospace & defense, agriculture, AI, AR/VR (augmented + virtual reality), automotive, telecommunication & networking, computer vision, construction, design, non-renewable energy, renewable energy, green technology, Fintech, Internet of Things, nanotechnology, social impact, food & beverages, pets & animals, textiles & apparel.

Headed by-Science and Engineering Research Board (SERB)

Fiscal incentive (*t&c applied)-The incentives include nominal support for pre-operative expenses

53. Name of the scheme-Aspire – Scheme for promotion of innovation, entrepreneurship and agro-industry

Industry applicable-Agriculture, pets & animals, social impact, healthcare & life sciences

Headed by-Steering Committee, Ministry of MSME

Fiscal incentive (*t&c applied)-Based on nature of existence of the incubator

54. Name of the scheme-Aspire – 4E (End to End Energy Efficiency)

Industry applicable-Sector-agnostic

Headed by-Small Industries Development Bank of India (SIDBI)

Fiscal incentive (*t&c applied)-Up to 90% of the project cost with minimum loan amount of INR 10 Lakhs and maximum loan amount not to exceed INR 150 Lakhs per eligible borrower can be granted. The MSME unit has to pay only INR 30,000 and applicable taxes and the balance fee will be paid by SIDBI to auditors

You can have a look at their detailed article at: https://inc42.com/startup-101/startup-scheme-indian-government-startups

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