The country where finding investments and support for your business remains a tough task. Understanding this, the new government has launched schemes especially to boost the small industries and start-ups. These schemes will be soon available for the consumption purpose.
Indian Prime Minister Narendra Modi focus on making India one of the top countries in doing businesses can’t be fulfilled until and unless small industries get a strong support from the government. There are 36 million micro and small businesses in India which provide employment opportunities for more than 76 million people. MSMEs (Micro, Small and Medium Enterprises) have been remained a growth engine for all the developed countries. Even China’s phenomenal economic rise is due to its focus on polices and support mechanism provided to MSMEs.
Indian government from the beginning has focused on small scale industry but the implementation of policies have remained a major hurdle for the desired outcome. The other significant obstacle was ‘information deficit’- people are not aware of the schemes. However, now due to presence of social media and government awareness programs the deficit to some extent has been removed and small businesses even from rural are exploiting these shemes for their benefit.
Since the last 5 years, India is witnessing an unprecedented growth in entrepreneurship – at least 2 new companies are launched every day and venture capitals are pouring money due to viability of business and available skilled manpower. However, India still lacks a dynamic environment like China and Israel (governments are playing the proactive role) for nurturing start-ups and entrepreneurs.
Look at the upcoming scheme focused on start-ups, MSMEs and businesses:
- Self-Employment and Talent Utilisation (SETU) For Start-Ups
Indian Finance Minister Arun Jaitley during presenting this year’s budget, announced INR 10,000 Cr for start-ups and entrepreneurs. It aims to create 1, 00, 000 jobs. The scheme aims to , engage young entrepreneurs for inclusive growth through various measures such as – incubation centres in IIT and IIM, liberal system, ease of doing business and providing seed capital. SETU will be techno-financial incubation and facilitation program providing support to all aspects of start-up business mainly in technology driven area. National Institution for Transforming India (NITI Ayog) will be the implementing agency for this program.
- Atal Innovation Mission (AIM)
AIM will provide financial assistance to network institutions to conduct research on new projects that can foster economic growth and job opportunities. 150 Cr has been allocated for the financial year 2015. The scheme targets young innovative Indians. It will focus on those innovative products which can be commercialize.
- Mudra Bank for Small Business Loan
A special central microfinance agency – Micro Units Development Refinance Agency (MUDRA) has been created this year with an initial corpus of 20,000 Cr and credit guarantee corpus of 3,000 Cr to provide loan facilities to small businesses in India. Mudra bank will provide refinancing to all micro-finance institutions that are providing loans to small businesses through Pradhan Mantri Mudra Yojna (PMMY). SC/ST enterprises will be the priority in this program.
Read More on: PMMY
In addition to that state-run banks have been also directed to provide loan assistance up to 10 lakhs to micro and small enterprises. A mega campaign will start from 25 September to 2 October 2015 to give a push to PMMY. All the banks have been given a target of INR 1.22 Lakh Cr during the financial year 2015-16 for disbursement of loans under PMMY. The motive behind these two schemes is to streamline the small industries and enable them to participate efficiently in the Indian economy. Till now, more than 35 Lakhs people have benefited under Mudra.
- Creation of a single mechanism for getting multiple permissions
Indian government has put forward the creation of an expert committee who will analyse the possibility of creation of a single mechanism for getting multiple permissions instead of pre-existing tiresome regulatory mechanism.
- Reduction in Corporate Tax
In 2015 Budget, the government announced that basic corporate tax will be reduced from 30% to 25% in next four years. It is expected that the reduction will be done in phases. Industry experts are quite enthusiastic about this proposal and they expect that by this move, India will attract more investments, higher growth and jobs.