Government tweaks startup resolutions by introducing comprehensive list of schemes! Startup India action plan which was launched on January 16, 2016 by PM Narendra Modi opened doors to many knowledge based and technology driven innovations in diverse industries. In the past few months Indian Government has introduced innumerable schemes providing funds, loans and other benefits to startup. These Startup India schemes support new ideas and research programmes methodically by following standard regulations.
Unlocking astonishing facts & figures:
• India’s rank in number of startups-3rd place behind Britain and US
• Technology startups that exists in India- Around 4,400
• Expected number of startups by 2020-Over 12,000
Run through the below list to know more about Startup India schemes:
1. Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
Headed by: DeitY (Department of electronics and Information and Technology)
Industry: IT services, analytics, enterprise software, technology hardware
Fiscal Incentives: Up to 15 Lakhs per invention or 50% of expenses (whichever is lesser)
SIP-EIT scheme under digital India provides financial support to Startups and MSMEs for international patent filing, funding for inventions and leverage growth opportunities.
2. Multiplier Grants Schemes (MGS)
Headed by: DeitY (Department of electronics and Information and Technology)
Industry: IT services, analytics, enterprise software, technology hardware
Fiscal Incentives: Maximum INR 2 Cr per project within duration of less than 2 years and INR 4 Cr with 3 years for industry consortiums
Multiplier Grants Schemes (MGS) is the main growth drivers of ITES (Information Technology Enabled Services) and IT companies and aims to initiate collaborative R&D between industry and institutions.
3. New Gen Innovation and Entrepreneurship Development Centre (New Gen IEDC)
Headed by: New Gen IEDC
Industry: Chemicals, technology hardware, healthcare & life sciences, aeronautics/ aerospace, defence, agriculture, automotive, construction, nanotechnology, food &beverages;, textiles & apparel etc.
Fiscal Incentives: Limited, one-time, non recurring financial assistance, up to maximum of INR 25 Lakhs.
IEDC projects are promoted in educational institutions to develop to create an entrepreneurial culture. New Gen IEDC strives to uplift knowledge based and technology driven startups by harnessing young minds.
4. Aspire (Scheme for promoting innovations and entrepreneurship)
Headed by: Steering Committee, Ministry of MSME
Industry: Agriculture, Pets & animals, health care & life sciences, social impact
Fiscal Incentives: Based on the existence of incubator project
Aspire promotes development of rural economy by supporting Agro industry which is promoted by MSME (Ministry of micro, small & medium enterprise). Aspire is one of the Startup India scheme initiative which is not only focused on solving problems, but also creating employment.
5. Single Point Registration Schemes (SPRS)
Headed by: National Small Industries Corporation (NSIC)
Industry: Agnostic
Fiscal Incentives: Micro and small enterprise will be issued tender sets for free, which means they get exemption from EMD (Earnest Money Deposit)
MSEs willing to register under Single Point Registration Schemes can either do nsic registration online or contact nearest NSIC office for registration.
6. Infrastructure Development scheme
Headed by: National Small Industries Corporation (NSIC)
Industry: Agnostic
Fiscal Incentives: A deposit of 6 months refundable rent and an office space of 465 sq.ft. to 8,657 sqft is provided. The allotment process of leasable space is based on first come, first serve basis.
This scheme by Indian Government was initiated to solve office space issues of MSMEs. The Corporation also provides office space on a lease rental basis of perspective units.
7. International Cooperation (IC) Scheme
Headed by: Office if the Development Commissioner (MSME)
Industry: Travel & tourism, human resources, events and advertising
Fiscal Incentives: The amount may differ depending on the organization category
Under this scheme the department supports travel and marketing expenditures relating to the development of MSME sector. This initiative contributes in making MSME’s capable of competing internationally by leveraging technology and other resources that are provided by Indian Government.
8. Sparsh (Social Innovation programme for products which are affordable and relevant to Societal Health)
Headed by: Biotechnology Industry Research Assistance Council (BIRAC)
Industry: Healthcare & life sciences
Fiscal Incentives- The loan and grant are provided according to the startup stage
BIRAC initiated financial and technical support social innovators who make efforts to identify the needs and gaps in healthcare. This is a promising step towards making revolutionary changes in the healthcare industry, and also giving boost to many young social innovators who bring life-saving changes with the help of various technologies.
Some Important points keep in mind:
• Most of the above scheme required a registered entity. Means you have to require a private limited company registration or some other license like GST Registration etc.
• Some scheme also required the recommendation letter from the government of India authorized incubators regarding validation of the ideas.
Final thoughts:
Apply for Startup India registration to avail these schemes or simply download startup India app and even now there a new portal as Startup India hub. Flipkart, Paytm, Snapdeal, Ola, Zomato, Quickr and Hike are few popular startups that inspire Government and innovators to shed light on such result oriented schemes. It remains to be seen what startup schemes will be coming up in future to bring new developments.
About the Author :
Devyash Patel is CEO, Founder at myonlineca which deals in online legal services across India at your fingertips.
