Government Schemes

Under

By,
Gokul
Mahesh
Harsha
 Start-up India
Startup India campaign is based on an action plan aimed at promoting bank financing for
start-up ventures to boost entrepreneurship and encourage start ups with jobs creation.
The campaign was first announced by Prime Minister Narendra Modi in his 15 August
2015 address from the Red Fort. It is focused on to restrict role of States in policy domain
and to get rid of "license raj" and hindrances like in land permissions, foreign investment
proposal, environmental clearances. It was organized by Department of Industrial Policy
and Promotion . A startup is an entity that is headquartered in India which was opened
less than seven years ago and has an annual turnover less than 25
crore (US$3.9 million).
Key points:
Single Window Clearance even with the help of a mobile application
10,000 crore fund of funds
reduction in patent registration fee
Modified and more friendly Bankruptcy Code to ensure 90-day exit window
Freedom from mystifying inspections for 3 years
Freedom from Capital Gain Tax for 3 years
Freedom from tax in profits for 3 years
Self-certification compliance
Innovation hub under Atal Innovation Mission
Starting with 5 lakh schools to target 10 lakh children for innovation programme
 What is Micro, Small & Medium Enterprises?
Definitions of Micro, Small & Medium Enterprises: the Micro, Small and Medium Enterprises
(MSME) are classified in two Classes:
1. Manufacturing Enterprises- employing plant and machinery in the process of value
addition to the final product having a distinct name or character or use. The
Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
2. Service Enterprises:-The enterprises engaged in providing or rendering of services and
are defined in terms of investment in equipment.
The limit for investment in plant and machinery / equipment for manufacturing / service
enterprises
Manufacturing sector
Micro enterprises <=25 lakh rupees
Small enterprises >25 lakh rupees and <= 5 crore rupees
Medium enterprises > 5 crore rupees and <=10 crore rupees
Service sector
Micro enterprises <=10 lakh rupees
Small enterprises >10 lakh rupees and <= 2 crore rupees
Medium enterprises > 2 crore rupees and <=5 crore rupees
 MSME
Micro, Small and Medium Enterprises in India offer a heterogeneous and varied nature of
fabric in terms of the size and structure of the units, variety of products and services,
scale of production and application of technology. These enterprises are quite
complementary to the large scale industries as ancillary units. They contribute to the
socio-economic development of the country quite significantly. The MSMEs in India
constitute about 80% of the total number of industries and produce about 8,000 value
added products.
An appropriate definition of Micro, Small and Medium Enterprises and their proper
classification in a national or international context offers a varied perspective. The term
MSME is normally used to describe small industrial or business units in private sector.
MSMEs have been classified differently in different contexts in terms of their nature of
assets and scale of production etc. while others have defined those units in term of
employment generation, shareholder funds, scale of investment or sale of products etc.
The growth and development of MSME sector in our country has been consistent and
remarkable over the preceding decades. Statistics show that the number of such
enterprises has increased from about 1.1 crore in 2001-02 to 4.1 crore units in 2009-10
and again to 4.48 crore enterprises in 2014-15. The MSMEs produce more than 7,500
products and also contribute to about 35% of the Indias exports. MSMEs contribute 8%
of the countrys GDP, 45% of the manufactured output and 40% of exports (Prime
Ministers Task Force on MSME, 2010).
 NSE SME
NSE Ltd has set up the NSE SME Platform as per the rules and regulations laid
down by SEBI. NSE SME Platform offers an entrepreneur and investor friendly
environment, which enables the listing of SMEs from the unorganized sector
scattered throughout India, into a regulated and organized sector.

Listing on the NSE EMERGE exchange has various benefits for startups and SME,
other than raising of funds:
Provides the company with lots of visibility and credibility amongst investors,
customer, suppliers, employees and other stakeholders.
Can help attract newer investors into the company.
The company can raise money by diluting smaller stake to informed investors on
need basis
Can enable to the company to list on the NSE or other exchanges in the future.
Provides credibility and value to the ESOP offered to employees
 SIDBI
Small Industries Development Bank of India, is an independent financial
institution aimed to aid the growth and development of micro, small and
medium-scale enterprises in India.
The business domain of SIDBI consists of Micro, Small and Medium Enterprises
(MSMEs), which contribute significantly to the national economy in terms of
production, employment and exports. MSME sector is an important pillar of
Indian economy as it contributes greatly to the growth of Indian economy with a
vast network of around 5.1 crore units, creating employment of about 11.7
crore, manufacturing more than 6,000 products, contributing about 45% to
manufacturing output and about 40% of exports in terms of value, about 37% of
GDP.
The business strategy of SIDBI is to address the financial and non-financial gaps
in MSME eco-system. Financial support to MSMEs is provided by way of (a)
Indirect / refinance to banks / Financial Institutions for onward lending to
MSMEs and (b) direct finance in the niche areas like risk capital, sustainable
finance, receivable financing, service sector financing, etc. As on March 31,
2016, SIDBI has made cumulative disbursements of about `4.50 lakh crore
benefitting about 350 lakh persons. By this way, SIDBI would be complementing
and supplementing efforts of banks/ FIs in meeting diverse credit needs of
MSMEs.
 Aspire - Scheme for promotion of innovation,
entrepreneurship and agro-industry
Objective of ASPIRE Scheme
The main objectives of the ASPIRE scheme are to:
Create new jobs and reduce unemployment;
Promote entrepreneurship culture in India;
Grassroots economic development at district level;
Facilitate innovative business solution for un-met social needs; and
Promote innovation to further strengthen the competitiveness of MSME sector.

The ASPIRE Scheme fund has a Rs.200 crore corpus, which will be dedicated for the
following uses:
Automation of agricultural practices and activities related thereto;
Value addition to agriculture and forest produce;
Recycling of agricultural pre/post-harvest wastages, off farm but farm linked, animal husbandry etc.,
Business models for aggregation and value addition relevant for rural areas;
Business models for creation of local employment in rural areas; and
Business models for social impact.
 MARKETING ASSISTANCE SCHEME
Marketing, a strategic tool for business development, is critical for the growth and
survival of micro, small & medium enterprises. Marketing is the most important factor for
the success of any enterprise. Large enterprises have enough resources at their command
to hire manpower to take care of marketing of their products and services. MSME sector
does not have these resources at their command and thus needs institutional support for
providing these inputs in the area of marketing. Ministry of Micro, Small & Medium
Enterprises, inter-alia, through National Small Industries Corporation (NSIC), a Public
Sector Enterprise of the Ministry, has been providing marketing support to Micro & Small
Enterprises (MSEs) under Marketing Assistance Scheme.

OBJECTIVES:
The broad objectives of the scheme, inter-alia, include:
To enhance marketing capabilities & competitiveness of the MSMEs.
To showcase the competencies of MSMEs.
To update MSMEs about the prevalent market scenario and its impact on their activities.
To facilitate the formation of consortia of MSMEs for marketing of their products and
services.
To provide platform to MSMEs for interaction with large institutional buyers.
To disseminate/ propagate various programmes of the Government.
To enrich the marketing skills of the micro, small & medium entrepreneurs.
 National Awards Scheme
The Micro, Small &Medium Enterprises (MSMEs) in India have seen a vast development in the last
five decades. The MSMEs have registered tremendous growth as also progress in terms of quality
production, exports, innovation, product development and import substitution, very much beyond
the expected objectives of setting up MSMEs by the planners of industrial production base in the
country. Entrepreneurial efforts have made it possible to produce number of items, which hitherto
were imported. In quite a few cases new variants so produced are having additional attributes than
their original versions and are capable of solving a multitude of user problems. This all has become
possible owing to the ambitions and visionary spirit of entrepreneurs of MSMEs
OBJECTIVE:
The ministry of Micro, Small and Medium Enterprises with a view to recognizing the efforts and
contribution of MSMEs gives National Award annually to selected entrepreneurs and enterprises
under the scheme of National Award.
PERIODICITY & ELIGIBILITY:
The Awards are be given for every calendar year to deserving entrepreneurs of Micro, Small and
Medium Enterprises having permanent registration/have filed Entrepreneurs Memorandum with
the authorities notified by respective State Governments/UT Administration in accordance with
the provisions contained in the Micro, Small and Medium Enterprises Development (MSMED) Act
2006, which came into force on 2 October 2006. The MSMEs should have been in continuous
production/service for last four years.
 Credit Linked Capital Subsidy for Technology
Upgradation

It is a Credit Linked Capital Subsidy Scheme for technology upgradation of Micro

and Small enterprises in the country (CLCSS).
The Scheme was launched in the financial year 2000-2001.
Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15
lakh is provided to the eligible MSEs for upgrading their technology with the
well-established and improved technology as approved under the scheme.
If you are a MSE manufacturing a product and want to upgrade the technology
of manufacturing the product with the well established and improved
technology as approved under the Scheme, the unit approach to the nodal
Banks/Agencies /Eligible financial institution for sanction of term loan for
purchase of eligible machinery. The financial insti tu tions / nodal banks / agency
will sanction & recommend the subsidy eligible applicant to this office.