India’s economy is growing rapidly thanks to government subsidies that encourage businesses to expand. These are the kinds of support that help businesses to grow, particularly, especially small and medium-sized enterprises that operate in highly competitive environments.
This blog post discusses the top ten list of subsidy given by Indian government to support profitable business operations. Let’s understand these subsidies that may help to grow your business.
List Of 10 Government Subsidies For Businesses In India
Here are Indian government subsidies list
1 Startup India Scheme
One of India’s most important government subsidies for businesses is the Startup India Scheme. This project began in 2016 and aims to create a robust environment for supporting new business ideas with government subsidies in India. It has perks, like not paying taxes for the first three years and thus being easier to follow. The Indian government has formed a fund of Rs. 10,000 crore to help startups with their capital requirements.
2 Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Micro and small businesses can get loans through the CGTMSE govt subsidy without putting up collateral. It provides a security that covers up to 85% of the loan amount, making it easier for companies to avail business capital. The MSMEs can get loan benefits of up to Rs.200 lakh under this scheme.
3 Stand-Up India Scheme
The Stand-Up India Scheme helps women and people from SC/ST groups start their own businesses. It provides loans ranging from Rs. 10 lakh to Rs. 1 crore to these groups. In the past seven years, the Stand-Up India Scheme has provided more than Rs. 40,700 crore to more than 1,80,630 businesses.
4 Pradhan Mantri Mudra Yojana (PMMY)
Small and medium businesses that are not farms or corporations can get loans of up to 10 lakh rupees through the PMMY govt subsidy. The following groups describe these loans:
- Shishu: Loans up to Rs. 50,000 rupees
- Kishore: Loans that range from Rs. 50,000 to Rs.5 lakh
- Tarun: Loan that range from Rs. 5 to Rs.10 lakh
It has given out over 29.55 crore loans worth Rs 15.52 lakh crore since it started in 2015.
Also Read:- What Is Pradhan Mantri Mudra Yojana (PMMY)?
5 Production Linked Incentive (PLI) Scheme
The PLI govt subsidy aims to increase manufacturing in the country particularly for the electronics industry, by providing them with financial assistance. Under this scheme, If you buy more goods made in India, the government will provide you with extra benefits. The Indian government has set aside Rs. 1.97 lakh crore for this plan. Some of the industries it covers are technology, drugs, and cars.
6 National Small Industries Corporation (NSIC) Subsidy
Through various services, the NSIC govt subsidy mainly helps small businesses. Some of these services are to help with promotion, credit scores, and getting raw materials. It also has a credit support program to help small and medium-sized businesses get loans at low interest rates. NSIC helped MSMEs get loans worth Rs. 236 crore in 2020-21.
7 Market Development Assistance (MDA) Scheme
The MDA plan helps MSMEs enter new markets in India and other countries. It helps businesses with funding to go to foreign trade shows, events, and meetings between buyers and sellers. This support has been critical in helping Indian MSMEs grow their presence worldwide. It has made it much easier for them to ship goods at foreign countries.
8 Technology and Quality Upgradation Support to MSMEs
This govt subsidy encourages MSMEs to use tools that use less energy. It provides capital assistance to help with putting energy-saving steps into action. Under this plan, businesses can get up to 75% of the cost of installing energy-saving tools. This incentive lowers the cost of operating business and encourages environmentally friendly methods.
9 Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Under the government subsidy for a business list, SFURTI scheme is one such that helps to make traditional businesses more robust, effective, and competitive. It backs the building of Common Facility Centers (CFCs) and other infrastructure improvements to help groups of traditional businesses. In many rural areas, this project has given them new life. It helps them to make more money and manufacture more products.
10 Prime Minister’s Employment Generation Program (PMEGP)
This scheme is the best for providing government subsidy loan for business. PMEGP helps startups for new small businesses in the non-farm sector by helping them with fund requirements. This govt subsidy gives grants that cover anywhere from 15% to 35% of the project cost based on the locations of business owners and other factors. PMEGP loan Scheme has helped more than 8.85 lakh businesses since it began, which has created over 70 lakh jobs.
If You are a women entrepreneur than find 9 Government scheme for women entrepreneurs.
Takeaway
list of subsidies given by the Indian government is essential for Indian companies to grow and stay competitive. Business owners should leverage these schemes to improve their chances of success. It can help them to deal with their financial problems intelligently.
Also, companies can build a solid and stable financial base by using these incentives. Government subsidies are beneficial. However, businesses often have serious money problems that they must fix immediately.
Indifi Technologies’ financial services are custom-made to meet the needs of growing businesses. Indifi provides financial assistance by approving loans quickly and giving you various payment choices. You can use these benefits in addition to government subsidies to help your business grow financially.
FAQs
- How do you explain government subsidies?
Government subsidies for businesses are funds that the government provides to companies and industries to help them financially. These include handouts, tax breaks, or other ways to provide capital. The goal of these is to lower costs and boost growth.
- How do I apply for a govt subsidy for my business?
Most of the time, you can apply for government subsidies through the appropriate government websites or offices. For each scheme, the particular government website has information on who is eligible and how to apply.
- What are the advantages of government subsidies for businesses?
Government subsidies help businesses by lowering their costs, encouraging new ideas, and making it easier for them to get credit. They are essential for making sure that businesses can stay competitive and grow financially.
4. Which entities offer subsidies to businesses?
Here is the list of entities offer subsidies to businesses
- Startup India Scheme
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Prime Minister’s Employment Generation Program (PMEGP)
- Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
- Technology and Quality Upgradation Support to MSMEs
- Market Development Assistance (MDA) Scheme
- National Small Industries Corporation (NSIC) Subsidy
- Production Linked Incentive (PLI) Scheme
5. What are the highest subsidy given by Indian govt for businesses?
Here are few highest subsidies given by Indian Govt For Businesses.
- 25% Capital Investment Subsidy Scheme: Entrepreneurs can get up to ₹6.25 lakh as financial support, which is 25% of their project cost.
- MSME CHAMPIONS: Offers a subsidy of 15–35% on bank loans for projects in manufacturing and services.
- Pradhan Mantri Mudra Yojana: Provides loans up to ₹10 lakh for small businesses and startups.
- Stand-up India: Offers loans between ₹10 lakh and ₹1 crore for women entrepreneurs and those from SC/ST communities.
- CGTMSE (Credit Guarantee Scheme): Provides loans up to ₹2 crore without requiring collateral for MSMEs.
- NSIC Subsidy Schemes: Supports MSMEs with financial help for marketing, technology upgrades, and buying raw materials.
- MSME Loan Scheme: Provides loans up to ₹1 crore for new or existing small businesses.