Newly introduced Schemes by central Govt to Promote
Business Development in India
India
is home to a vibrant and rapidly growing business landscape, with the
government playing a crucial role in fostering its development. In recent
years, the central government has introduced several new schemes to support
businesses across various sectors, including manufacturing, agriculture, and
startups. These schemes aim to provide financial assistance, infrastructure
support, and regulatory facilitation to entrepreneurs and businesses of all
sizes.
Here
are some of the newly introduced schemes by the central government for business
development in India:
Production Linked Incentive (PLI) Scheme: The Production Linked
Incentive (PLI) Scheme is a flagship initiative of the Government of India to
boost domestic manufacturing and attract investments in key sectors. The scheme
offers financial incentives to manufacturers who meet certain production and
employment targets.
The PLI Scheme has the following objectives:To increase domestic manufacturing capacity
- To
promote innovation and technology adoption
- To
attract investments in key sectors
- To create jobs
- To boost exports
Key Features of the PLI Scheme
The PLI Scheme is a demand-driven scheme, which means that
incentives are only paid to manufacturers who meet certain production and
employment targets. The scheme is sector-specific, and different incentives are
offered for different sectors. The scheme is also time-bound, and incentives
are typically offered for five years.
Benefits of the PLI Scheme: The PLI Scheme has several benefits, including:
- Increased domestic manufacturing capacity
- Promotion of innovation and technology adoption
- Attraction of investments in key sectors
- Job creation
- Boost in exports
Sectors Covered by the PLI Scheme
The PLI Scheme covers a wide range of sectors, including:
- Automobiles
- Auto components
- Pharmaceuticals
- White goods
- Textiles
- Electronics
- Food processing
- Advanced chemistry cell manufacturing
- Renewable energy
- Solar PV modules
- Lithium-ion cells
- Steel
- Specialty steel
Implementation of the PLI Scheme: The PLI Scheme is being implemented by the concerned ministries and departments of the Government of India. The scheme has been well-received by the industry, and several companies have already announced plans to invest in India under the scheme.
Impact of the PLI Scheme
The PLI Scheme is expected to have a significant impact on the Indian economy. The scheme is expected to increase domestic manufacturing by Rs. 30 lakh crore and create over 10 lakh jobs. The scheme is also expected to boost exports by Rs. 7 lakh crore.
Scheme of Fund for Regeneration of Traditional Industries (SFURTI):
The
Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is an
initiative of the Ministry of Micro, Small, and Medium Enterprises (MSME) to
promote cluster development and enhance the competitiveness of traditional
industries in India.
The
scheme provides financial assistance for various activities, including:
Infrastructure development: This includes the construction
of common facilities, such as workshops, training centers, and exhibition
halls.
Technology upgradation: This includes the provision
of modern equipment and machinery, and the training of artisans in new
technologies.
Skill development: This includes the provision of training
to artisans in various skills, such as design, marketing, and packaging.
Market development: This includes the promotion of
traditional products through various channels, such as trade fairs,
exhibitions, and online platforms.
Start India Seed Fund Scheme: The Startup India Seed Fund Scheme
(SISFS) is an initiative of the Department of Promotion of Industry and
Internal Trade (DPIIT) to provide financial assistance to early-stage startups
for proof of concept, prototype development, product trials, market entry and
commercialization. The scheme was launched in 2016 with an outlay of Rs. 945
crore to support an estimated 3,600 entrepreneurs through 300 incubators in the
next four years.
The
SISFS has the following objectives:
- To
provide financial assistance to early-stage startups
- To
encourage the development of innovative ideas
- To
promote entrepreneurship and job creation
- To
strengthen the startup ecosystem in India
Key
Features of the SISFS
The
SISFS is a sector-agnostic scheme, which means that startups from any sector
can apply. The scheme is also year-round, so startups can apply at any time.
Startups can apply to three incubators simultaneously. The grant is disbursed
in two installments: 50% at the time of approval of the project and 50% after
the startup has achieved certain milestones.
Startup
India Seed Fund: Eligibility for the SISFS
To
be eligible for the SISFS, a startup must meet the following criteria:
- It
must be a private limited company or a limited liability partnership.
- It
must be incorporated not more than two years before the date of application.
- It
must have a valid goods and services tax identification number (GSTIN).
- It
must have a minimum of two full-time promoters.
- It
must have a prototype or a working model of the product or service.
- It
must have a well-defined business plan.
Application
Process:
The
application process for the SISFS is online. Startups can apply through the
Startup India portal. The application form requires startups to provide
information about their company, their product or service, their team, their
market opportunity, and their financial projections.
Selection
Process:
The
selection process for the SISFS is competitive. Startups are evaluated based on
several factors, including the innovativeness of their idea, the strength
of their team, the market potential of their product or service, and their
financial viability.
Funding
for the SISFS:
The
SISFS provides financial assistance of up to Rs. 20 lakh per startup. The grant
is disbursed in two installments: 50% at the time of approval of the project
and 50% after the startup has achieved certain milestones.
Impact
of the SISFS
The
SISFS has had a significant impact on the startup ecosystem in India. The
scheme has provided financial assistance to over 2,000 startups, and it has
helped to create over 10,000 jobs. The SISFS has also played a role in
attracting investments to the Indian startup ecosystem.
Atal Innovation Mission (AIM): The Atal Innovation Mission (AIM) is a
flagship initiative of the NITI Aayog to promote a culture of innovation and
entrepreneurship across India. The mission was launched in 2016 with a budget
of Rs. 10,000 crore, and it has since supported a number of initiatives,
including:
Atal
Tinkering Labs (ATLs): ATLs are school-based labs that are designed to
encourage students to experiment with STEM concepts and develop their
creativity and problem-solving skills. The mission has established over 7,500
ATLs in schools across India.
Atal
Incubation Centres (AICs): AICs are incubators that provide startups with the
resources and support they need to grow and succeed. The mission has
established over 60 AICs in institutions across India.
Atal
Innovation Challenges: AICs organize innovation challenges on various themes to
encourage students and entrepreneurs to come up with innovative solutions to
real-world problems.
Atal
New India Innovators (ANII): ANII is a program that identifies and supports
young innovators in India. The program provides mentoring, funding, and other
support to help innovators turn their ideas into reality.
The
AIM has had a significant impact on the Indian innovation ecosystem. The
mission has supported over 10,000 startups and innovators, and it has helped to
create a more vibrant and dynamic innovation ecosystem in India.
Credit Linked Capital Subsidy Scheme (CLCSS): The Credit Linked Capital Subsidy
Scheme (CLCSS) is an initiative of the Ministry of Micro, Small and Medium
Enterprises (MSME) to encourage the adoption of new technologies by micro,
small and medium enterprises (MSMEs) in India. The scheme provides a subsidy of
15% on the capital cost of new technology adopted by MSMEs. The subsidy is
disbursed through Primary Lending Institutions (PLIs), which are banks and
other financial institutions that provide loans to MSMEs.
The
CLCSS has the following objectives:
- To
encourage the adoption of new technologies by MSMEs
- To
improve the productivity and competitiveness of MSMEs
- To
promote economic growth
Key
Features of the CLCSS
The
CLCSS is a demand-driven scheme, which means that subsidies are only paid to
MSMEs that adopt new technologies. The scheme is also sector-specific, and
different subsidies are offered for different sectors. The scheme is
time-bound, and subsidies are typically offered for a period of five years.
Eligibility
for the CLCSS
To
be eligible for the CLCSS, an MSME must meet the following criteria:
- It
must be a registered MSME with a valid Udyog Aadhaar number.
- It
must have a turnover of up to Rs. 25 crore per annum.
- It
must adopt new technology that is recommended by the Ministry of MSME.
Application
Process:
The
application process for the CLCSS is online. MSMEs can apply through the CLCSS
portal. The application form requires MSMEs to provide information about their
company, their project, and the technology they are adopting.
Selection
Process:
The
selection process for the CLCSS is competitive. MSMEs are evaluated based on a
number of factors, including the innovativeness of their project, the potential
impact of the technology on their business, and their financial viability.
Funding
for the CLCSS:
The
CLCSS provides a subsidy of 15% on the capital cost of new technology adopted
by MSMEs. The subsidy is disbursed through Primary Lending Institutions (PLIs),
which are banks and other financial institutions that provide loans to MSMEs.
MSME Loan Scheme in 59 Minutes: The MSME Loan Scheme in 59 Minutes is a
government initiative that aims to make it easier for micro, small and medium
enterprises (MSMEs) to access credit. Under the scheme, MSMEs can apply for
loans of up to Rs. 5 crore through a single online application form. The
application process is designed to be simple and easy to follow, and the loan
is typically approved within 59 minutes.
There
are several benefits to the MSME Loan Scheme in 59 Minutes, including:
Quick
and easy application process: The application process for the scheme is
designed to be simple and easy to follow. MSMEs can apply for loans through a
single online application form, and the application is typically approved
within 59 minutes.
Lower
interest rates: The scheme offers lower interest rates than other loan schemes
for MSMEs. This can help to reduce the cost of borrowing for MSMEs and make it
easier for them to repay their loans.
Reduced
paperwork: The scheme requires less paperwork than other loan schemes for
MSMEs. This can save MSMEs time and effort, and it can make it easier for them
to access the credit they need.
To
be eligible for the MSME Loan Scheme in 59 Minutes, an MSME must meet the
following criteria:
- It
must be a registered MSME with a valid Udyog Aadhaar number.
- It
must have a turnover of up to Rs. 25 crore per annum.
- It
must have a good credit history.
How
to Apply for the MSME Loan Scheme in 59 Minutes:
To
apply for the MSME Loan Scheme in 59 Minutes, MSMEs can follow these steps:
Visit
the PSB Loans in 59 Minutes portal: https://www.psbloansin59minutes.com/home
The
MSME Loan Scheme in 59 Minutes is a valuable initiative of the Government of
India. The scheme is making it easier for MSMEs to access credit, and it is
helping to boost economic growth.
Pradhan Mantri MUDRA Yojana (PMMY): The Pradhan Mantri MUDRA Yojana (PMMY)
is a government initiative that aims to provide loans to micro, small and
medium enterprises (MSMEs) in India. The scheme was launched in 2015 and has
since provided loans of over Rs. 3.5 lakh crore to over 10 crore MSMEs.
Objectives
of PMMY :The
PMMY has the following objectives:
- To
provide loans to MSMEs
- To
promote entrepreneurship and job creation
- To
boost economic growth
Key
Features of PMMY
The
PMMY offers loans of up to Rs. 10 lakh to MSMEs. The loans are provided by
banks and other financial institutions, and they are repayable over a period of
up to 5 years. The loans are available to MSMEs in all sectors, including
agriculture, manufacturing, and services.
Types
of Loans under PMMY
The
PMMY offers three types of loans:
- Shishu
loans: Loans of up to Rs. 50,000
- Kishor
loans: Loans of Rs. 50,000 to Rs. 5 lakh
- Tarun
loans: Loans of Rs. 5 lakh to Rs. 10 lakh
Eligibility
for PMMY
To
be eligible for a PMMY loan, an MSME must meet the following criteria:
- It
must be a registered MSME with a valid Udyog Aadhaar number.
- It
must have a turnover of up to Rs. 25 crore per annum.
- It
must have a good credit history.
How
to Apply for a PMMY Loan
To
apply for a PMMY loan, MSMEs can follow these steps:
- Visit
the MUDRA website: https://www.mudra.org.in/
- Click
on the "Apply for Loan" option.
- Choose
the type of loan you are applying for.
- Complete
the online application form.
- Upload
the required documents.
- Submit
the application form.
Impact
of PMMY
The
PMMY has had a significant impact on the MSME sector in India. The scheme has
helped to increase access to credit for MSMEs, and it has also helped to boost
entrepreneurship and job creation.
National Single Window System (NSWS): The National Single Window System
(NSWS) is an online platform that provides a single point of access for
businesses to apply for approvals and licenses from various government
agencies. The NSWS was launched in 2021 with the aim of streamlining the process
of obtaining approvals and licenses, and to make it easier for businesses to do
business in India.
Benefits
of the NSWS:There are a number of benefits to the NSWS, including:
- Reduced
paperwork: The NSWS eliminates the need for businesses to submit multiple
applications to different government agencies.
- Faster
approvals: The NSWS aims to reduce the time it takes for businesses to obtain
approvals from government agencies.
- Transparency:
The NSWS provides businesses with a transparent view of the status of their
applications.
- Ease
of doing business: The NSWS makes it easier for businesses to do business in
India.
How
to Use the NSWS: To
use the NSWS, businesses can follow these steps:
- Create
an account on the NSWS portal: https://www.nsws.gov.in/
- Select
the type of approval or license you are applying for.
- Complete
the online application form.
- Upload
the required documents.
Udyami Bharat Scheme: Udyami Bharat Scheme is a government initiative that aims
to promote entrepreneurship and innovation in India. The scheme was launched in
2022 with an outlay of Rs. 10,000 crore.
The
Udyami Bharat Scheme has the following objectives:
- To
promote entrepreneurship and innovation in India
- To
create jobs and boost economic growth
- To
make India a global hub for entrepreneurship
Key
Features of Udyami Bharat Scheme
The
Udyami Bharat Scheme offers a range of support measures to entrepreneurs,
including:
- Financial
assistance: The scheme provides financial assistance to entrepreneurs in the
form of loans, grants, and subsidies.
- Training
and skill development: The scheme provides training and skill development
programs to entrepreneurs to help them develop the skills they need to succeed.
- Market
access: The scheme helps entrepreneurs to access markets and buyers for their
products and services.
- Networking
and mentorship: The scheme provides entrepreneurs with opportunities to network
with other entrepreneurs and mentors.
Eligibility
for Udyami Bharat Scheme :To
be eligible for the Udyami Bharat Scheme, entrepreneurs must meet the following
criteria:
- They
must be Indian citizens.
- They
must be residents of India.
- They
must have a valid Udyog Aadhaar number.
- They
must have a business plan.
Application
Process for Udyami Bharat Scheme
The
application process for the Udyami Bharat Scheme is online. Entrepreneurs can
apply through the Udyami Bharat portal. The application form requires
entrepreneurs to provide information about their business, their business plan,
and their financial needs.
PM Mega Integrated Textile Region and Apparel (PM MITRA): PM Mega Integrated Textile Region and
Apparel (PM MITRA) is a flagship scheme of the Government of India aimed at
transforming India into a global leader in the textile and apparel sector. The
scheme was launched in 2021 with an outlay of Rs. 4,445 crore.
Objectives
of PM MITRA:The
PM MITRA scheme has the following objectives:
- To
create integrated textile manufacturing clusters across India
- To
attract investments of Rs. 70,000 crore and generate 2 lakh direct and 4 lakh
indirect employment opportunities
- To
boost exports of textiles and apparel by Rs. 10,000 crore per annum
- To
make India a hub for innovative textile products
- To
promote sustainable practices in the textile industry
Key
Features of PM MITRA
The
PM MITRA scheme offers a range of incentives to investors, including:
- Land
subsidy: The scheme provides a subsidy of up to 50% of the cost of land for
setting up textile units in PM MITRA parks.
- Infrastructure
subsidy: The scheme provides a subsidy of up to 30% of the cost of
infrastructure development in PM MITRA parks.
- Capital
subsidy: The scheme provides a subsidy of up to 20% of the capital cost of
setting up textile units in PM MITRA parks.
- Interest
subsidy: The scheme provides an interest subsidy of up to 5% on loans taken by
textile units in PM MITRA parks.
- Employment
subsidy: The scheme provides an employment subsidy of up to Rs. 10,000 per
worker per annum for the first five years of operation of textile units in PM
MITRA parks.
Eligibility
for PM MITRA
To
be eligible for the PM MITRA scheme, investors must meet the following
criteria:
- They
must be a company or a partnership firm registered under the Companies Act,
2013 or the Indian Partnership Act, 1932.
- They
must have a net worth of Rs. 20 crore or more.
- They
must have a minimum annual turnover of Rs. 100 crore or more.
Selection
Process for PM MITRA
The
selection process for PM MITRA is competitive. Investors are evaluated based on
a number of factors, including:
- The
project's viability
- The
investor's financial strength
- The
investor's technical expertise
- The
project's contribution to employment and exports
-
These
schemes represent the government's commitment to fostering business development
and creating a conducive environment for entrepreneurs and businesses to thrive
in India. By providing financial assistance, infrastructure support, and
regulatory facilitation, these schemes aim to boost economic growth, create
jobs, and enhance India's global competitiveness. For more information on these
and other schemes, please visit the website of the Ministry of Commerce and
Industry: https://www.commerce.gov.in/
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