50+ Startup Schemes By The Indian Government That Startups Should Know About

February 15, 2018

 

The Indian government has introduced over 50+ startup schemes in past few years. Each startup scheme is missioned towards boosting the Indian startup ecosystem.

 

  • Close to 6,400 technology startups exist in India and the number is expected to reach over 12,000 by 2020. 

  • India is also at third place behind US and Britain in terms of the number of startups.

  • In line with its global counterparts, India has its own billion dollar club to boast about. This includes startups like FlipkartSnapdealOlaHikePaytmZomato, and Quikr. With the next $100 Mn funding raise, fintech startup MobiKwik too looks to join the unicorn club.

Nirmala Sitharaman, MoS, Commerce and Industry made this statement during the launch of the Startup India Action Plan on January 16, 2016, by PM Narendra Modi. In the past 18 months, the Indian Government has come up with a wide array of startup schemes and startup funds to encourage launch and growth of startups in the country. However, of the many initiatives, only a few such as Fund of Funds, Tax exemption, gain hype across the startup community.

 

These startup schemes have been introduced over a period of time and many of these were introduced before the launch of Startup India plan. But most of the startups are either not aware of these different schemes or do not have a clear idea on how to avail them.

 

This 50+ startup schemes floated by the Indian government to date to support the Indian startups, SMEs, MSMEs, Businesses, Research Institutes, Incubators, Accelerators, etc. Indian. Sectors that these government schemes for startups operate under range from tech-specific verticals to agritech, greentech, science and academic innovation and more.

 

The Startup Schemes By Indian Government

 

Startup Scheme 1:
Support For International Patent Protection In Electronics & Information Technology (SIP-EIT)
 

Headed by:

Department of Electronics and Information Technology (DeitY)

Industry Applicable: IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI.

 

Eligible For:

MSMEs and technology startups in the ICTE sector.

 

Overview:

The scheme, launched by the Indian government, aims to provide financial support to MSMEs and technology startup units for international patent filing to encourage innovation and recognise the value and capabilities of global IP along with capturing growth opportunities in the ICTE sector.

 

Fiscal Incentives:

Reimbursement will be limited to a total of INR 15 Lakhs per invention or 50% of the total expenses incurred in filing and processing of the patent application upto grant, whichever is lesser.

 

Time Period:

The scheme is valid upto 30.11.2019.

 

To know more about this startup scheme by the Indian Government, Snap here.

 

Startup Scheme 2:
Multiplier Grants Scheme (MGS)
 

Headed By:

Department of Electronics and Information Technology (DeitY)

 

Industry Applicable:

IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI.

 

Eligible For: 

Startups, incubator/academia/accelerators. Should have projects in electronics & information technology.

 

Overview: 

The MGS aims to encourage collaborative R&D between industry and academics/R&D institutions for development of products and packages.

 

Fiscal Incentives: 

The Government grants for individual industry would be limited to a maximum of INR 2 Cr per project and the duration of each project should, preferably, be less than two years. For industry consortiums, these figures would be INR 4 Cr and three years.

 

Time Period: 

2-3 years

 

To know more about this startup scheme by the Indian Government, Snap here.

 

Startup Scheme 3:
Software Technology Park (STP) Scheme
 

Headed By: 

Software Technology Parks of India (STPI)

 

Industry Applicable: 

IT services, fintech, enterprise software, analytics, AI.

 

Eligible For: 

Software companies

 

Overview: 

The STPI has been set up with the objective of encouraging, promoting, and boosting software exports from India. The STP Scheme, by the Indian government, provides statutory services, data communications servers, incubation facilities, training and value-added services. The scheme allows software companies to set up operations in convenient and inexpensive locations and plan their investment and growth, driven by business needs.

 

Fiscal Incentives:

Sales in the DTA up to 50% of the FOB value of exports is permissible and depreciation on computers at accelerated rates up to 100% over 5 years is permissible.

 

Time Period: 

N/A

 

To know more about this startup scheme by the Indian Government, Snap here.

 

Startup Scheme 4:
Electronic Development Fund (EDF) Policy
 

Headed By: 

Department of Electronics and Information Technology (DeitY)

 

Industry Applicable: 

IT Services, analytics, enterprise software, technology hardware, Internet of Things, AI, nanotechnology.

 

Eligible For: 

Startups pursuing innovation in technology sectors like electronics, IT, and nanoelectronics.

 

Overview:

The agenda was envisaged to develop the Electronics System Design and Manufacturing (ESDM) sector to achieve “Net Zero Imports” by 2020. The EDF will help attract venture funds, angel funds and seed funds towards R&D and innovation in the specified areas. It will help create a cell of Daughter funds and Fund Managers who will be seeking good startups (potential winners) and selecting them based on professional considerations.

 

Fiscal Incentives: 

The Electronic Development Fund (EDF) is set up as a “Fund of Funds” to participate in professionally-managed “Daughter Funds” which, in turn, will provide risk capital to companies developing new technologies. CANBANK Venture Capital Funds Ltd. (CVCFL) is the Fund Manager for EDF.

 

Time Period:

 N/A

 

To know more about this startup scheme by the Indian Government, Snap here.

 

Startup Scheme 5:
Modified Special Incentive Package Scheme (M-SIPS)

 

Headed By: 

Department of Electronics and Information Technology (DeitY)

 

Industry Applicable: 

Technology hardware, Internet of Things, aeronautics/aerospace & defence, automotive, non-renewable energy, renewable energy, green technology and nanotechnology.

 

Eligible For: 

Startups in electronic manufacturing.

 

Overview: 

The scheme aims to support IPR awareness workshops/seminars for sensitising and disseminating awarenes