“Govt. of India and the Ministry of MSME have launched several unique Government schemes and programs designed to empower startups and MSMEs in India. We have covered the top 5 Government Schemes for Startups and MSMEs, which can help them trigger growth, and more business.”
When it comes to Micro, Small, and Medium Enterprises (MSMEs) and startups, then the Govt of India is very clear: They need to be nurtured, protected, and encouraged for India’s betterment.
Learn more about – What Are MSMEs? Its Definition, Benefits, Registration Process And Classifications Explained
Govt of India wants MSME’s contribution to India’s GDP to reach 50% by 2024, from the current 29%, and provide jobs to 15 crore Indians, up from 11 crores currently. This is why the Ministry of Micro, Small, and Medium Enterprises has introduced several Government schemes for startups, and small businesses, which aim to provide them with more resources and a platform for triggering more growth.
Startups and MSMEs are the foundation based on which Govt’s Atma Nirbhar mission and Make In India vision will succeed – Generating more employment, increasing exports, improving the standard of living for millions of Indians, and making India strong globally.
When it comes to startups, especially tech startups, India ranks among the fastest-growing ecosystems. Last year, Venture Capitalists infused record-breaking $48 billion into Indian companies and ideas for expanding their presence.
Hence, right now, India is in a unique position wherein both Govt and private investors want Indian entrepreneurs and startups, MSMEs to succeed and make their presence felt across the world. In this endeavor, the Govt of India and the Ministry of Micro, Small, and Medium Enterprises have launched several unique Government schemes and programs designed to empower startups and MSMEs in India.
Learn more about – What Is MSME Cluster Development? Programme Initiatives, Objectives And How To Apply?
Here are the Top 5 Government Schemes For Startups and MSMEs, which can help them trigger growth, and more business:
1. Pradhan Mantri Mudra Yojana
PM Modi launched Pradhan Mantri Mudra Yojana, wherein Micro Units Development and Refinance Agency Bank or MUDRA Banks provide loans at low rates to micro-finance institutions and non-banking financial institutions, who in turn provide low-interest loans to startups and MSMEs.Hence, Pradhan Mantri Mudra Yojana is one of its kind fund of funds, devised and conceptualized to empower Indian entrepreneurs. Loans up to Rs 10 lakh can be availed under the MUDRA scheme.
Learn more about – Pradhan Mantri Mudra Yojana – Mudra Loan Features, Benefits and Documents Required
It was launched in 2015 and within 2 years, more than 1.8 crore jobs were generated due to the loans and business generated via MUDRA. Till August 14th, 2020, more than 67 lakh loans amounting to Rs 48,000 crore have been sanctioned under the MUDRA scheme.
There are three categories of businesses, which can avail loans under MUDRA loan for startups:
- Category 1:Shishu, which is for new businesses. Loans up to Rs 50,000 can be availed.
- Category 2: Kishor, which is a mid-aged business. Loans up to Rs 5 lakh can be availed.
- Category 3: Tarun, which is an existing, experienced business. Loans up to Rs 10 lakh can be availed.
Learn more about – What is Mudra Shishu Loan? Benefits, Eligibility and Documents Required
Mudra scheme covers MSMEs such as Small Manufacturing Units, Retailers, Wholesalers, Artisans, and more. More details can be availed here.
2. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTSME)
CGTSME is one of the biggest Startup Loan Schemes launched by the Ministry of MSME in India.
Under this Government scheme, a collateral-free loan of up to Rs 1 crore is provided to eligible startups and MSMEs.The loan is dispersed via a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which is powered by the Ministry of MSME and Small Industries Development Bank of India (SIDBI). More details can be availed here.
Learn more about – CGTMSE Loan For MSMEs – What Is Credit Guarantee Fund Scheme? Features, Eligibility & How To Apply?
3. Financial Support to MSMEs in ZED Certification Scheme
Focussed on existing and new manufacturing units, ZED or Zero Defect and Zero Effect mission is to encourage manufacturers to create better products, with high quality and zero defects. The focus is to enable manufacturers to embrace world-class manufacturing processes, and use technology to ensure that their products are the best in the class.
The government scheme will provide both financial support, and technology and tools to ensure zero defects in their products. Startups and MSMEs can register for the ZED program here.
4. Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
Govt is clearly aware that technology is the tool that can propel Indian startups and MSMEs to compete with global competitors.
This is the reason for the creation of the Credit Linked Capital Subsidy for Technology Upgradation (CLCSS) Government scheme, wherein Govt provides financial help to MSMEs to upgrade their technology and implement state of an art technological platforms for their business.
Under CLCSS, Govt provides a 15% subsidy for investment up to Rs 1 crore for upgrading technology for startups and MSMEs in India. More than 7500 products/services are covered under this Government scheme. More details can be availed here.
Learn more about – What Is CLCSS Or Credit Linked Capital Subsidy Scheme? What are the Benefits of CLCSS for Technology Upgradation?
5. Design Clinic for Design Expertise to MSMEs
Design and innovation are critical for any sector, and every startup and MSME should have a design-centric approach to solve the problems of their niche. In order to encourage and inspire small businesses to experiment and try out new designs for their products, the MSME Ministry has created a Design Clinic for inducing design-related expertise for startups and MSMEs.
Under this Government scheme, Govt. will provide up to Rs 60,000 aid for attending design seminars and up to Rs 3.75 lakh or 75% of the cost of a seminar, wherein the entrepreneur and/or their team can learn and implement design theories and learn more about them. Via this program, entrepreneurs can know about the latest trends and practices related to designs, interact and network with other designers, entrepreneurs, and learn in-depth about design mentality and theories.
MSMEs, new businesses, startups, and agencies can apply online for this design clinic, and enter a new portal of innovation. More details can be availed here.
Bonus: Get Wealth of Knowledge, Information at Startup India Portal
Govt of India and the Ministry of MSME have launched a massive portal called StartupIndia, which provides a wealth of information and resources to new and existing entrepreneurs for their startups, businesses, and MSMEs.
Learn more about – What Is Startup India Scheme? Know The Scheme Details, Eligibility Criteria And List Of Advantages
In this portal, entrepreneurs can know more about Patents, Copyright Laws, Best Recruitment Practices, Market Research Reports, more info about all Startup Loan Schemes, Entrepreneur Development Programs, and more.
Besides, a list of all Government Schemes for Startups and MSMEs can be checked right here.
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