Government Schemes for the growth of Startup business in India

An emerging company which is still in it’s initial phase of operation is known as Startup supported by entrepreneurs. Government has introduced Start-up schemes to boost the Indian start-up ecosystem. There are 4400 technology start-ups in India may reach to 12000. The Modi Government introduced Startup India Action Plan on 16^th January 2016. The government introduced various schemes and funds to encourage launch and growth of start-ups in India.

Government Scheme for the Start ups in India:-

Support for International Patent Protection in Electronics & Information Technology:-

SIP-EIT was introduced by Department of Electronics and Information Technology to give the financial support to start-ups in technology field.

Multiplier Grants Scheme :-

MGS was introduced by the Indian Government for IT and Software services, which aims to encourage collaborative R&D between Industry and the institutes.

Software Technology Park:-

Government launched this scheme to encourage, promote, and boost software exports from the country. It provides the growth environment to the software companies. EPCG Scheme allows the duty free import of capital goods at zero custom duty to manufacture the capital goods.

EDF Policy:-

EDF Stands for electronic development fund it was launched to provide start-ups which are in innovation in technology such as electronics, nanotechnology, IOT etc.

Modified Special Incentive Package Scheme:-

It was launched in july 2012 for the start-ups which are in electronic manufacturing. It provides subsidy of 20% in SEZ units which are in electronics manufacturing. EPCG Scheme was introduced under foreign trade policy to save the customs duty on the capital goods to manufacture the export products, EPCG License issued to save the duty. Government issue the license with the condition to fulfil the export obligation by doing export six times of the duty saved amount in six years.

Startup India:-

The Government launched Startup India to create a better environment for Start-ups in India.

Objective of Startup India:-

• Economic growth
• Employment generation

Sectors benefited from the Startup India shall be Manufacturing, Agriculture, Social sector, Education, Healthcare.

Government schemes for the exports:-

The Government provides the export benefits under MEIS Scheme for the goods exporters and service exporters under MEIS Scheme and SEIS Scheme respectively. The benefits are given in the form of duty credit scrips which can be transferred and sold in open market at premium rate.

Under Advance Authorisation scheme license is issued to save the custom duty on the import of inputs required to manufacture the export goods. There are four methods to achieve the advance license under the scheme.