In today’s dynamic economic landscape, startups play a pivotal role in driving innovation, fostering economic growth, and creating employment opportunities. Recognizing their significance, the Indian government has introduced various schemes and initiatives aimed at providing financial, infrastructural, and regulatory support to startups across different sectors. In this comprehensive guide, we delve into some of the key government schemes and initiatives designed to empower startups in India.
Electronics Hardware Technology Park Scheme
Ministry: Ministry of Electronics and Information Technology (MeitY)
Key Sector Covered: Hardware
The Electronics Hardware Technology Park (EHTP) scheme, under the aegis of MeitY, aims to promote the development and export of electronics hardware in India. It offers benefits such as duty-free import of capital goods and raw materials, simplified customs procedures, and tax incentives for eligible businesses. By enabling duty-free imports, the scheme reduces operational costs for units operating under it, thereby facilitating the growth of the electronics hardware industry in India.
Domain-specific Centres of Excellence
Ministry: Ministry of Electronics and Information Technology (MeitY)
Key Sectors Covered: Deep Tech/Technology
MeitY has established domain-specific Centres of Excellence (CoEs) across various areas of national interest, in collaboration with STPI, state governments, industries, and venture capitalists. These CoEs serve as focal points for knowledge management and capability building in emerging technology areas. They provide infrastructure, mentorship, funding, and ecosystem support to startups operating in sectors such as FinTech, IoT, ESDM, Medi-Electronics & Health Informatics, and Intellectual Property.
Genesis – Digital India Startup Program
Ministry: Ministry of Electronics and Information Technology (MeitY)
Key Sector Covered: Deep Tech/Technology
The Genesis program, part of the Digital India initiative, aims to support and nurture startups in Tier-II and Tier-III cities of India. It focuses on collaborative engagement among startups, government, and corporates to promote digitization and inclusive economic growth. Eligible entities include startup incubators, accelerators, investment platforms, and academic R&D institutions based in Tier-II and Tier-III cities. The program provides funding opportunities to startups, enabling them to expand globally and contribute to economic development.
Duty Exemption And Remission Scheme
Ministry: Ministry of Electronics and Information Technology (MeitY)
Key Sector Covered: Import
The Duty Exemption and Remission Scheme facilitates duty-free import of inputs for export production, including replenishment of inputs or duty remission. By eliminating import duties on inputs, the scheme aims to promote export-oriented production and enhance the competitiveness of Indian manufacturers in the global market.
Software Technology Park (STP) Scheme
Ministry: Ministry of Electronics and Information Technology (MeitY)
Department: Software Technology Parks of India (STPI)
Key Sector Covered: IT and Service Sector
The STP Scheme, administered by STPI, is a 100% export-oriented scheme aimed at promoting the development and export of computer software and IT services. Eligible companies, registered under the Companies Act, 2013, or as Limited Liability Partnerships (LLPs), can avail benefits such as duty exemption on import of hardware and software, tax benefits, single window clearance, and infrastructure facilities. The scheme plays a crucial role in supporting the growth of the IT and service sector in India.
Conclusion
In conclusion, the government schemes and initiatives outlined above exemplify India’s commitment to fostering a conducive ecosystem for startup growth and innovation. By providing financial, infrastructural, and regulatory support across various sectors, these schemes aim to empower startups to realize their full potential and contribute to the country’s economic development. Entrepreneurs and aspiring startups are encouraged to leverage these schemes to propel their ventures towards success and contribute to India’s vibrant startup ecosystem.
