1.

ASPIRE – A Scheme for the Promotion of Innovation, Rural Industries, and

Entrepreneurship
This scheme was introduced to set up a network of technology centers and incubation centers across India with
the objective of accelerating entrepreneurship and encouraging innovations for unmet social needs in the agro-
business industry. It provides financial aid for setting up livelihood business incubators and/or technology
business incubators, by way of a one-time grant of 100% (hundred percent) cost of plant & machinery (apart
from land and infrastructure) or a sum up to INR 100 (Indian rupee hundred) lakhs, whichever is less.
In India, a large portion of the population is still dependent on agriculture for their livelihood and a substantial
number of Indians live in rural areas. As such, this scheme was launched with the purpose of generating
employment and establishing enterprises in the agriculture industry. It provides knowledge to entrepreneurs for
establishing their own businesses, to emerge as employers, and to ensure their self-sustainability. This program
intends to foster district-level economic growth from the ground up.

2. Pradhan Mantri Mudra Yojana

Under this scheme, Micro Units Development and Refinance Agency Ltd. (“MUDRA”) is a non-banking
financial company that supports the development of the micro-enterprise sector in India. MUDRA provided
refinance support to banks and/or microfinance institutions for lending to micro units that have loan requirements
up to INR 10 (Indian rupee ten) lakhs. The loans have been divided into categories of Tarun, Kishore, and Shishu,
depending on the stage of development, funding needs and age of the business, and the amount of loan that can
be availed by these businesses. There is no collateral security for these assets and loans up to INR 10 (Indian
rupee ten) lakhs can be provided to small businesses which are non-corporate and non-farm micro or small
enterprises. This loan is granted for a variety of activities that provide income generation and employment
creation. It is mostly offered to street vendors, store owners, traders, and other service providers. Additionally,
working capital, travel vehicles, and working capital loans are offered. Thus, it is a unique scheme that is devised
to empower Indian entrepreneurs.

3. Support for International Patent Protection in Electronics and Information

Technology (SIP-EIT)
The SIP-EIT scheme was launched by the Department of Electronics and Information Technology (“DeiTY”)
with the aim of providing government funding to technology startups and Micro Small and Medium Enterprises
(“MSME”) in India for filing international patents. This encourages innovation, builds brand recognition, and
recognizes the importance and potential of having global intellectual property protection. Financial assistance is
provided to the information communication technologies and electronics sector. The eligible entities can apply
for this scheme at any stage of the international patent filing process. The reimbursement limit is set at either
50% (fifty percent) of the total expenses incurred during the filing and processing of the application or INR 15
(Indian rupee fifteen) lakh for every invention, whichever is lesser.

4. Multiplier Grants Scheme (MGS)

This scheme was again launched by DeitY with the objective of encouraging industries to collaborate with
premier academic and government R&D institutions for the development of packages and products. This would
strengthen the link between industries and institutes, accelerate the development of indigenous products and
packages, and bridge the gap between proof-of-concept and globalization. Under this scheme, if an industry
supports the R&D of products that are capable of commercialization, the government would provide funding up
to twice the amount provided by that industry. The grant amount for an individual industry is restricted to 2 (two)
crores per project and the preferred duration of each project is less than 2 (two) years. For a consortium of
industries, the granted limit is 4 (four) crores with a duration of 3 (three) years.

5. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
To implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises (“MSE”), the Ministry of
MSME, the Government of India, and the Small Industries Development Bank of India (“SIDBI”), established
the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). This scheme strengthens the credit
delivery system and facilitates the flow of credit in the MSE sector. It provides loans at highly subsidized rates
and with zero collateral to startups, small-scale industries, and micro-level businesses. The scheme covers fund
and non-fund-based credit facilities up to Rs. 200 lakhs for every eligible borrower and the funds are dispersed
by the SIDBI. The scheme is primarily for service or manufacturing businesses and the loan can be availed in
the form of a term loan or working capital.

6. Single Point Registration Scheme (SPRS)

SPRS is a developmental scheme managed by the National Small Industries Corporation (NSIC) for supporting
MSE. Undoubtedly, the Indian government is the single largest purchaser of a large array of goods. The objective
behind this scheme was to increase the number of purchases from the small-scale sector. By opting for this
scheme, NSIC registers the eligible MSEs for participation in government purchases without any Earnest Money
Deposit (EMD), which is the money taken from bidders before they place any bid, as a security deposit for
ensuring their seriousness in the project. Thus, under SPRS, MSEs having an NSIC registration will be exempt
from paying the EMD. Further benefits include advantages in tender participation, free-of-cost tender, and
procurement from MSEs. As an additional benefit, 358 (three hundred and fifty-eight) categories of goods are
reserved for being purchased exclusively from the MSEs and the government has also prescribed a minimum
limit of 25% of the total yearly purchases made by central ministries, departments, and public sector undertakings
from MSEs only.

7. Extra Mural Research or Core Research Grant (CRG)

CRG was originally named the Extramural Research Funding Scheme. It was launched more than four decades
ago, after the establishment of the Science and Engineering Research Board (“SERB”) but continues to be one
of the most relevant and useful schemes. The objective of CRG is to help research labs, academic institutions,
and other R&D organizations carry out research in all frontier fields of science and engineering. Thus, it
encourages upcoming and eminent scientists for an individual-centric competitive method of research funding.

8. High-Risk and High-Reward Research

This scheme aims to support and invite new ideas and proposals which carry the potential to have a broad impact
in the domains of science and technology. It lays emphasis on proposals that are new and risky, but if successful,
can be highly rewarding for the field of science. Such proposals may include theoretical and experimental
advances, challenges to existing hypotheses, scientific breakthroughs, an ‘out of the box’ solution for an
important problem, or the formulation of a new hypothesis that brings about new technologies. There is no
prescribed budget limitation for these projects and the research grant shall cover consumables, contingencies,
equipment, and traveling costs apart from the overhead grants. The funding is provided for 3 (three) years which
may be extended to 5 (five) years in exceptional cases.

9. Design Clinic Scheme

The Indian government has recognized the importance of innovation and design in the growth of any brand and
decided that every MSME and startup should build a design-centric approach to fueling their startup. In order to
encourage small businesses to experiment with new and innovative designs for their goods, the Ministry of
MSME established the Design Clinic scheme to create a sustainable design ecosystem through ongoing training
and skill development. Under this scheme, the government shall extend up to INR 60,000 (Indian rupee sixty
thousand) for attending seminars on design and up to INR 3.75 lakhs or 75% (seventy-five percent) of the
seminar’s cost, where the seminar is conducted by the startup or MSME. By virtue of this program, it is expected
that entrepreneurs and leaders would get an opportunity to learn about the latest practices and trends pertaining
to designs, network with other innovators and designers, learn design theories, and increase the local
competitiveness of their products using designs.

10. Zero Defect Zero Effect (ZED) scheme

This mission seeks to motivate manufacturers to create better products, that have zero defects and high quality,
as the name suggests. It is a handholding scheme that provides an opportunity for MSMEs to embrace world-
class manufacturing processes, use new technology, and consistently improve their products. The scheme
provides tools, technology as well and financial assistance to startups and MSMEs to ensure zero defects in their
goods. ZED also offers a holistic certification, assesses enterprises for ZED, and supports startups in climbing
up the maturity assessment model of the scheme.

Several government and private initiatives support the development of

new ideas and startups in India. These programs aim to nurture
innovation, provide financial assistance, and foster a strong startup
ecosystem.

Key Initiatives:

Startup India:
This flagship initiative, launched by the Government of India, aims to build
a strong ecosystem for innovation and startups. It includes various
schemes like the Startup India Seed Fund Scheme (SISFS), which
provides financial assistance to startups at various stages, and the Fund of
Funds for Startups (FFS).
National Initiative for Developing and Harnessing Innovations
(NIDHI):
NIDHI, a program by the Department of Science & Technology, focuses on
nurturing technology-driven and knowledge-based startups.
Technology Incubation and Development of Entrepreneurs (TIDE) 2.0
Scheme:
This scheme provides financial and technical support to incubators
supporting tech startups, particularly those using emerging technologies
like AI and IoT.
Atal Innovation Mission (AIM):
AIM is a flagship initiative to create and promote a culture of innovation
and entrepreneurship across India.
Entrepreneurship Skill Development Programme (ESDP):
The Ministry of Micro, Small & Medium Enterprises (MSME) offers various
ESDP components, including Entrepreneurship Awareness Programme
(EAP), Entrepreneurship cum Skill Development Programme (E-SDP), and
Management Development Programme (MDP), to train and support
entrepreneurs.
Credit Guarantee Scheme for Startups (CGSS):
This scheme provides credit guarantees to loans extended to DPIIT-
recognized startups by Scheduled Commercial Banks and other financial
institutions.
Incubation and Industry-Academia Partnerships:
Many government and private organizations offer incubation services to
support startups in their early stages, including mentoring, training, and
access to facilities.
Bharat Startup Knowledge Access Registry (BHASKAR):
This digital platform aims to connect and collaborate diverse stakeholders
within the startup ecosystem, facilitating knowledge sharing and growth