India is emerging in the field of startups and has a fast potential market for startups. The government of India also initiated the ‘Startup India’ initiative to give a boost to startups. Prime Minister Narendra Modi announced the initiative on August 15, 2015. Startups stand as a pillar of growth and development in a country. Increasing startups increase employment as it generates jobs. By development of startups, it increases the demand pool in a market.
Startup companies often attract outside investments, which increases a country’s FDI (Foreign Direct Investment), which helps to increase the GDP. Startups have risks attached to them, but they are unique and provide great opportunities.
Government’s initiative for startups
The Government of India has come forward with various schemes to empower startups in India. A few of them are-
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Pradhan Mantri Mudra Yojana
PM Modi launched the Pradhan Mantri Mudra Yojana in 2015. Under this scheme, the Micro Units Development and Refinance Agency Banks provide loans to micro-finance institutions at low rates. Later, these institutions offer low-interest loans to startups.
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Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
Technology works as a tool to help startups compete in the global market. Keeping this in mind, the Government of India has created the CLCSS scheme. Under this scheme, the government provides financial help to startups to upgrade and enhance their technological platform.
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Get a Wealth of Knowledge and Information at startup India Portal
The Government of India launched a massive portal called the StartupIndia along with the Ministry of MSME. This platform provides various resources and information to upcoming and previously existing entrepreneurs for their businesses.
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National Initiative for Developing and Harnessing Innovations (NIDHI)
It is an umbrella program under the Department of Science and Technology, Government of India. It is planned to double the number of incubators and startups.
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Ranking of States on Support to Startup Ecosystems (RSSSE)
RSSSE is a program initiated by the Department for Promotion of Industry and Internal trade under the Central Ministry of Commerce and Industry.
Various other initiatives
- Startup India Seed Fund Scheme
- National Startup Awards
- SCO Startup Forum
- Prarambh
Challenges relating to startups in India
- Indian education system lacks behind in vocational training and industry exposure. Due to this, students in India need to catch up in terms of development and research.
- Various small startups in India need to be recognized due to being socially inactive. These are primarily from rural areas that are deprived of internet facilities.
- Most startups in India fail to grow as a significant sum of amount is required for them to develop, and they need a source of formal income.
- Some startups are confined to a smaller region and need more exposure to greater markets. They must be in a particular region to cope with the growing demand, which restricts their growth.
