India is the country where there are way more people than jobs, so it is very much important for a country like India to generate the employment opportunities. The Government policies are playing vital role in the job creation. Economic Policies and Foreign trade Policies can be formed which can boost the exports from the country which generates the employment and also can increase the number of start-ups within the country which also leads to the generation of employment.
The Government of India has formed the dedicated ministry for helping the start-ups to grow their businesses. The Ministry has launched various schemes to promote entrepreneurship in India. To boost the startup mission in India Government has set up different startup schemes to provide the financial assistance to the entrepreneurs. There are the following initiatives the central and state Government has taken to encourage startup culture in India.
For generating the employment and wealth creation the Government launched Startup India Scheme. The Objective of the scheme is to develop and innovate the goods and services manufactured in India to increase the employment rate in the country.
- Startup India Functions –
- Simplification of work
- Financial assistance
- Government tenders
- Networking opportunities
The Modi Government has launched the Startup India Action Plan on 16th January 2016.Support for International Patent Protection in Electronics and Information Technology (SIP-EIT) scheme is headed by the department of Electronics and Information Technology (DeitY) and applicable to IT services, analytics, Hardware and software technology, Internet of things, Artificial intelligence. SIP-EIT was introduced to provide financial support to MSMEs and technology startup units.
For providing the financial assistance Government provides rebate on the patent costs of almost 80% of the expenses.
Stand Up India Scheme:-
This scheme was launched in 2016 to cater to women entrepreneurs, SC and ST communities, Ranging from 10 Lakh to 100 Lakh it is available to Greenfield ventures in manufacturing, trading, and service units. Under this scheme it is mandatory for every bank to lend money to at least one women/SC/ST unit per branch.
Micro Units Development and refinance agency (Mudra) :-
It is introduced to provide the funds to micro and small enterprises. It is applicable for manufacturing, trading, and even allied agricultural services. It has 3 category loan up to 50,000 under Shishu category, loan between 50,000 to 5 Lakh under Kishor and Loan between 5 Lakh to 10 Lakh under Tarun category.
Export benefits to the exporters:-
The Government of India launched various Government incentive schemes to provide financial support to the exporters and making Indian goods and services competitive in the global markets, There are the following Schemes government has introduced under export promotion schemes:-
MEIS Scheme (Merchandise exports from India Scheme) was launched in April 2015 to provide export benefits of 2% to 5% on the FOB value of exports in the form of transferable scrips to the goods exporters.
Service exports from India Scheme was introduced in April 2015 under foreign trade policy to provide the benefits in range of 5% to 7% on the net foreign exchange earned on the notified services in the form of duty credit scrips which is transferable in nature.
RoDTEP Scheme :-
RoDTEP Scheme (Rebate of duties or taxes on the export products) introduced to replace existing MEIS Scheme which will reimburse the duties/taxes/levies on the export products.
NABARD stands for the National Bank for Agriculture and rural development, the aim of the scheme is to provide credit benefits to agriculture as well as other cottage and village industries, NABARD works with RBI to implement financial assistance in rural areas, it offeres 90% of project cost from 10 Lakhs to 150 Lakhs to entrepreneurs.
There are many more other schemes launched by the Government to provide the financial assistance to the exporters, start-ups and other MSMEs to generate the employment and economic growth of the country.