The Indian government has been proactive in fostering a robust entrepreneurial ecosystem through various policies, schemes, and initiatives. These efforts are designed to support startups, encourage innovation, and integrate small and medium enterprises (SMEs) into the global supply chain. Here’s a detailed overview of the significant government support, policies, and plans announced in the last year aimed at entrepreneurship development in India.
1. Startup India Initiative
Launched in 2016, the Startup India initiative continues to be a cornerstone in supporting new businesses. The initiative provides tax exemptions, simplified regulations, and easier access to funding. In the recent Union Budget, the government extended the incorporation period for startups seeking tax benefits by one more year, now until March 31, 2024. This extension aims to support startups during their crucial initial years.
2. Production Linked Incentive (PLI) Scheme
The PLI scheme, which incentivizes companies to boost domestic manufacturing and reduce import dependency, has been extended to various sectors including electronics, pharmaceuticals, and textiles. This scheme encourages both startups and established companies to scale their manufacturing capabilities and enhance their competitiveness globally.
3. SAMRIDH Scheme
The SAMRIDH (Startup Accelerators of MeitY for Product Innovation, Development, and Growth) scheme aims to enhance the startup accelerator ecosystem in India. It provides funding support along with skill development opportunities, focusing on accelerating 300 startups by offering investor connections, customer outreach, and opportunities for global expansion.
4. Skill India Digital
Launched to revolutionize skill development, the Skill India Digital platform integrates various government initiatives to provide a comprehensive ecosystem for skill development. It offers digital credentials, a job exchange, and convergence of skilling schemes, ensuring that individuals have access to lifelong learning and employment opportunities. This initiative significantly supports entrepreneurial ventures by providing the necessary skills and certifications.
5. PM Vishwakarma Scheme
This scheme is aimed at traditional artisans and craftsmen, providing them with modern tools, skill enhancement, and credit support. It includes a toolkit incentive of ₹15,000, basic and advanced training with stipends, and collateral-free loans up to ₹2 lakh. This scheme not only preserves traditional crafts but also integrates them into the modern economy, fostering entrepreneurial growth in rural and semi-urban areas.
6. Infrastructure Development
The government’s emphasis on infrastructure development has been a critical factor in supporting entrepreneurship. The significant increase in capital expenditure for constructing roads, highways, and power plants enhances connectivity and reduces logistical challenges for businesses. The development of GIFT City as a global financial hub also attracts international investments, benefiting local startups and entrepreneurs.
7. Ease of Doing Business
India has made considerable progress in improving its ease of doing business ranking. The government has reduced over 39,000 compliances and decriminalized more than 3,400 legal provisions to create a more business-friendly environment. The introduction of the Jan Vishwas Bill aims to reform 42 central acts, promoting trust-based governance and further easing business operations in the country.
8. Multiplier Grant Scheme (MSG)
This scheme supports collaborative R&D projects between industry and academic institutions to develop innovative products. It aims to bridge the gap between research and commercialization, providing a maximum grant of ₹2 crore per project. This initiative encourages technological advancements and the development of new products, crucial for the growth of startups and SMEs.
9. Support for MSMEs
The government has introduced various measures to support Micro, Small, and Medium Enterprises (MSMEs), including access to credit, incentives, and technology integration. Extending the deadline for the 15% corporate tax rate for new manufacturing companies to March 31, 2025, is a significant move to encourage more investments in the sector.
10. NewGen IEDC
The NewGen Innovation and Entrepreneurship Development Centre (IEDC) scheme aims to inculcate a spirit of entrepreneurship among students. It provides financial support and mentorship to educational institutions to promote innovation and entrepreneurial projects, fostering a new generation of entrepreneurs.
In conclusion, the Indian government’s comprehensive support for entrepreneurship through various schemes and policies plays a pivotal role in nurturing a vibrant entrepreneurial ecosystem. These initiatives not only provide the necessary financial and technical support but also create an environment conducive to innovation and growth. As a result, India continues to emerge as a global hub for startups and entrepreneurship, contributing significantly to economic growth and job creation.
