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India Government Schemes For Entrepreneurs: Fueling Industrial and Manufacturing Growth

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Table of Contents

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  • The Entrepreneurial Landscape of India: A Hub for Innovation and Growth
  • Market Forecasts, Demand, and Growth in the Manufacturing and Industrial Sector
      • Related: India Government Schemes for Entrepreneurs: Fueling Manufacturing and Industrial Growth 
    • MSMEs: The pivotal role
    • Market Outlook and Future Projections
      • View our project reports for more information
  • Key Government Schemes for Entrepreneurs
    • 1. Startup India Initiative
    • 2. Pradhan Mantri Mudra Yojana (PMMY)
      • View our Books for more information
    • 3. Stand-Up India Scheme
    • 4. Prime Minister’s Employment Generation Programme
    • 5. Credit Guarantee Fund Trust for Micro and Small Enterprises
      • Related: India’s Untapped $479 Million Opportunity: The FRP Composites Revolution
    • 6. Atal Innovation Mission (AIM)
    • 7. Production Linked Incentive Scheme (PLI)
    • 8. Foreign Trade Policy (FTP) 2023
      • For more Detailed Information, check out our related videos
    • 9. Digital MSME Scheme
      • Find Best Idea for Yourself With our Startup Selector Tool
    • 10. The Technology Upgrade and Quality Certification Schemes
    • Niir Project Consultancy Services Support

The Entrepreneurial Landscape of India: A Hub for Innovation and Growth

India’s entrepreneurial ecosystem is dynamic and vibrant, marked by an increase in business registrations as well as a growing appetite to innovate. India Government Schemes For Entrepreneurs: Fueling Industrial and Manufacturing Growth are experiencing a revival, fueled by initiatives such as ‘Make in India’ and Atmanirbhar Bharat’ (Self-Reliant India). These campaigns are aimed at promoting domestic production and reducing reliance on imported goods. They also position India as an important player in the global supply chains.

Market Forecasts, Demand, and Growth in the Manufacturing and Industrial Sector

India’s manufacturing sector is set to grow significantly, thanks to rising domestic consumption, increased foreign direct investment (FDI), as well as the India Government Schemes. The ‘Make in India” initiative has attracted significant investment and led to the expansion of manufacturing units as well as the creation of new ones. Electronics, automotive, textiles, and pharmaceuticals are some of the key sub-sectors that show immense potential. Demand for Indian-made goods is increasing, driven by the growing middle class in India and their preference for products that are “Made in India”.

India’s total exports (merchandise and services) in the Ministry of Commerce & Industry Annual Report for 2023-24 reached US$

Related: India Government Schemes for Entrepreneurs: Fueling Manufacturing and Industrial Growth 

India Government Schemes

MSMEs: The pivotal role

Micro, Small, and Medium Enterprises are the backbone of India’s economy, and they contribute significantly to the GDP, employment, and exports. The MSME sector, which employs more than 110 million people in India, has approximately 63.4 million units located across the country. The MSME sector contributes 6.11% to the manufacturing GDP and 24.63% to the services GDP. MSME exports have risen from Rs3,95 lakh crore in the year 2020-21 to Rs12,39 lakh crore by 2024-25. By May 2024, MSMEs had contributed 45.79 % of India’s total imports, highlighting their crucial role in the nation’s economic progress.

Market Outlook and Future Projections

According to the World Economic Outlook of the International Monetary Fund (April 2024), global growth is projected at 3.2% in both 2024 as well as 2025. India’s economy will continue to grow despite global headwinds. This is due to domestic demand and infrastructure development led by the government. Focusing on the adoption of technology, digitization and skill development in the manufacturing sector will enhance its competitiveness.

View our project reports for more information

Key Government Schemes for Entrepreneurs

The Indian government offers a variety of schemes that support entrepreneurs in various stages of business development, from conception to expansion. These schemes can be grouped into four broad categories to meet different needs: financial assistance, technology upgradation and skill development as well as market access.

1. Startup India Initiative

The Startup India initiative was launched in 2016 by the Government of India as a flagship program to create a strong ecosystem in India for innovation and startups. The program aims to empower startup companies to grow by leveraging innovation and design. This initiative offers a variety of benefits, including simplified compliance and intellectual property protection. It also provides tax exemptions and funding.

  • Startup India Seed Fund Scheme
    The SISFS aims at providing financial assistance to startup companies for proof-of-concept, prototype development and product trials, as well as market entry and commercialization.

2. Pradhan Mantri Mudra Yojana (PMMY)

The PradhanMantri Mudra Yajana (PMMY), which was launched in 2015, is a scheme providing loans of up to Rs 10 lakh for small and micro enterprises that are not corporate or farm-based. These loans do not require collateral and are distributed by banks, Non-Banking Financial Companies and Micro Financial Institutions. PMMY loans can be classified into three categories:

  • Shishu: Up to Rs50,000 in loans, mostly for start-up businesses and those at the beginning of their journey.
  • Kishore: For businesses that are already established, but need funds for expansion, working capital, or both, he offers loans ranging between Rs50,001 and Rs5 lakh.
  • Tarun: For well-established companies looking to expand or diversify, loans range from Rs 5 lakhs to Rs 10 lakhs.

View our Books for more information

3. Stand-Up India Scheme

The Stand-Up India Scheme, launched in 2016, aims to encourage entrepreneurship among women as well as the Scheduled Castes and Scheduled Tribes by providing bank loans for the establishment of greenfield enterprises. The scheme offers financial support for projects in the manufacturing, service, and trading sectors. Each branch of a bank is required to provide at least one SC/ST and one female borrower with loans between Rs 10 lakh and Rs 1 crore. The scheme provides additional hand-holding assistance, such as pre-loan education, credit facilitation, and marketing support.

4. Prime Minister’s Employment Generation Programme

The PMEGP, administered by the Ministry of Micro, Small and Medium Enterprises, is a credit-linked subsidy program. The scheme aims to create employment in rural and urban areas through the establishment of new micro-enterprises. The scheme offers financial support for the establishment of projects in both the manufacturing and services sectors. The scheme provides financial assistance for the establishment of projects in the manufacturing and service sectors.

5. Credit Guarantee Fund Trust for Micro and Small Enterprises

CGTMSE is a joint initiative of the Ministry of MSME and SIDBI that provides credit guarantees for banks to extend collateral-free loans to Micro and Small Enterprises.

Related: India’s Untapped $479 Million Opportunity: The FRP Composites Revolution

6. Atal Innovation Mission (AIM)

AIM is a flagship project of NITI Aayog. Its goal is to encourage a culture that promotes innovation and entrepreneurship in India. The program includes Atal Tinkering Labs to encourage creativity and innovation in schoolchildren, and Atal Incubation Centres to provide startups with infrastructure, mentorship, and networking opportunities.

7. Production Linked Incentive Scheme (PLI)

PLI is an important part of India’s plan to boost its domestic manufacturing industry and make it more competitive in the global market. The scheme, which is available in various sectors including electronics, automobile, pharmaceuticals, and textiles as well as food processing, offers incentives for incremental sales of products made in India.

8. Foreign Trade Policy (FTP) 2023

The Foreign Trade Policy 2023 (which came into force on April 1, 2023) aims to create a predictable, equitable and sustainable environment for trade. It also promotes sustainable trade practices and integrates India into the global value chain.

  • Interest Equalization Scheme
    The Interest Equalization Scheme (IES) is a subsidy for pre- and post-shipment credit on rupees.
  • RoDTEP Scheme: Remission of Duties on Export Products
    The RoDTEP scheme is designed to reimburse different central, state and local taxes and duties that cannot be refunded by any other means but which are incurred during the manufacturing and distribution of exported products.
  • Trade Infrastructure for Export Scheme
    TIES offers financial assistance to create and upgrade export-related infrastructure.

For more Detailed Information, check out our related videos

9. Digital MSME Scheme

The Digital MSME Scheme, which recognizes the importance of digitalization, aims to empower the MSMEs through encouraging them to adopt Information and Communication Technology tools and applications within their production and business process.

Find Best Idea for Yourself With our Startup Selector Tool

10. The Technology Upgrade and Quality Certification Schemes

The Ministry of MSME has developed several schemes to upgrade technology and improve the quality of MSMEs.

Niir Project Consultancy Services Support

Niir Project Consultancy Services plays a vital role in assisting aspiring entrepreneurs and established business owners. NPCS provides detailed Techno Economic Feasibility reports and comprehensive Market Surveys. These are vital for understanding the dynamics of the market and project viability.

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