Raksha Bandhan Gift: Top Government Schemes for Startup Entrepreneurs

India's startup ecosystem has undergone a significant transformation over the past decade, largely due to government initiatives fostering innovation and supporting entrepreneurial ventures. These schemes, ranging from funding support to regulatory ease, have created a nurturing environment for startups to thrive. On the occasion of Raksha Bandhan, Team TICE presents key government schemes that fuel India's startup growth and act as a protective shield (Raksha Kavach) for entrepreneurs.

Startup India Action Plan: A Catalyst for Growth

Launched in 2016 by Prime Minister Narendra Modi, the Startup India Action Plan is a flagship initiative aimed at encouraging entrepreneurship and building a robust startup ecosystem in the country. The plan includes several measures to reduce regulatory burden and provide financial assistance to startups.

• Funding Support: The government established a Fund of Funds with a corpus of ₹10,000 crores to provide financial support to startups. This fund operates as a catalyst in funding startups through venture capital firms.
• Simplified Registration Process: Entrepreneurs can now register their companies in just one day, compared to the previous timeframe of 15-20 days. This streamlined process is designed to make it easier for startups to get off the ground.
• Tax Exemptions: Startups registered under the plan can avail of a three-year tax holiday, where they are exempt from paying income tax on their profits. This measure is designed to help startups reinvest their earnings and grow without the burden of tax liabilities.
• Capital Gains Exemption: To encourage investment in startups, the plan offers exemptions on capital gains tax, provided the profits are reinvested in another startup entity.
• Credit Guarantee Scheme: Startups also benefit from a credit guarantee scheme that facilitates easier access to loans without requiring collateral.
• Faster Exit Policy: Recognizing the high-risk nature of startups, the plan includes a simplified exit strategy that allows startups to wind down their operations quickly and with minimal regulatory hassle.
• Startup India Hub: This hub acts as a single point of contact for startup clearance, approvals, and regulatory processes, simplifying the bureaucratic maze for new businesses.

What is Startup India Seed Fund Scheme (SISFS)

The Startup India Seed Fund Scheme (SISFS) was launched to provide financial assistance at the seed stage of startups. This scheme is crucial for startups that need initial funding to develop their products and services.

• Objective: The scheme aims to build a robust startup ecosystem by providing financial assistance for proof of concept, prototype development, product trials, and market entry.
• Financial Support: With an outlay of ₹945 crores, SISFS provides funding through eligible incubators across India. This helps startups in their critical early stages, allowing them to focus on innovation and market penetration.

What Does Atal Innovation Mission (AIM) Do?

The Atal Innovation Mission (AIM) is another government initiative focused on promoting a culture of innovation and entrepreneurship across the country.

• Innovation Hubs and Labs: AIM provides support for the establishment of Atal Tinkering Labs, Incubation Centers, and Innovation Hubs. These centers foster creativity and innovation among students and budding entrepreneurs.
• Nationwide Impact: So far, 14,916 schools have been selected for Atal Tinkering Laboratories, with 4,875 schools already operational, each receiving a grant of ₹12 lakhs.

What is SAMRIDH Scheme?

The SAMRIDH Scheme, launched by the Ministry of Electronics & Information Technology (Meity), aims to support software startups in scaling their products for the global market.

• Financial Assistance: Startups can receive up to ₹40 lakhs in financial aid, helping them access both Indian and global markets.
• Support Network: The scheme also creates a platform for venture capitalists, entrepreneurs, and mentors to collaborate, providing comprehensive support to startups.

What is eBiz Portal for Startup Entreprenuers?

The eBiz Portal is India’s first online platform for government-to-business collaboration, modernizing the business environment in India.

• One-Stop Shop: Developed by Infosys and launched by the Ministry of Commerce and Industry, this portal serves as a one-stop shop for investors and the business community, streamlining processes and improving ease of doing business.

India's startup ecosystem has flourished due to government schemes like Startup India, Atal Innovation Mission, SISFS, SAMRIDH, and eBiz portal. These initiatives offer a potent mix of funding, mentorship, and regulatory support, fostering innovation and entrepreneurship. By creating a conducive environment, the government has empowered Indian startups to contribute significantly to the nation's economy. As these initiatives continue to evolve, they will play a crucial role in shaping the future of entrepreneurship in India.