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Prime Minister Employment Generation Programme (PMEGP)


Startups in India turnings ambitious in transforming India into the hub of entrepreneurs and innovation. The Government of India also backs the initiative by actively supporting startups and entrepreneurs. The collective efforts of the Government and entrepreneurs open the gates for continuous economic growth and employment generation.

The 100 unicorns and more than 60000 startups are functioning within India. The stabilized and balanced ecosystem of schemes and subsidy programs provides continuous aid in leading India to be a global manufacturing and export hub. It contains various benefits such as the startup India Action Plan which includes tax incentives and exemptions, loans at lower interest rates, skill development programs, etc.

Startup India Subsidy

The Startup India scheme contains various subsidies for different sectors. The government of India launched it in 2016 to provide financial aid to aspiring businesspersons. It assists business owners and organizations in the form of loans and subsidies to create wealth and jobs within India.

The stand-up India

Stand-up India provides financial aid for startups for the scheduled tribes, Scheduled castes, and one woman, at least one person per bank (more preferable government banks) for setting up a greenfield enterprise. It was launched in 2016 by Prime Minister, and it promotes employment in the backward class and women.

Bank provides loans from INR 10 lakhs up to 1 crore to at least one SC or ST person and one-woman borrower. The loan repayment is within the next seven years at an interest rate of 3%. This scheme is available to fresh borrowers.

Prime Minister Employment Generation Programme (PMEGP)

The Khadi and Village industries commission operates at the national level. It is executed via State KVIC Directorates, state Khadi and Village Industries (KVIBs), District Industries Centres (DICs), and banks. The KVICs distribute subsidies through direct transfers into the bank account of beneficiaries/entrepreneurs.

The manufacturing sector is eligible for up to Rs. 25 lakhs. The business and service sectors are eligible for up to Rs. 10 lakhs. The cost allocation is as follows: 15% (Urban), 25% (Rural), and special 25% (Urban) and 35%(Rural). NER, Hill, Border Areas, Ex-servicemen, Minorities, Women, Ex-servicewomen, OBCs, Minorities, Women, and Women belong to this category. The loan amounts come in the form of a term loan and a working capital loan.

Chief Minister Employment Generation Program

Chief Minister Employment Generation establishes to generate one lakh micro and small enterprises in the next five years. This scheme will create about 8 to 10 lakh jobs in rural and urban areas. Loan amounts are limited to Rs. 50 lakhs.

Category                      Contribution    Rate on urban    Rate on rural

General                               10%             15%                         25%

Special (SC, ST,                  5%               25%                         35%



differently abled)

Mudra Yojana

MUDRA Yojana, known as Pradhan Mantri Mudra Yojana Scheme (PMMY) launched by Prime Minister in April 2018. It provides loans to non-corporates. Micro Units Development and Refinance Agency Ltd. (MUDRA) is a Non-banking Finance Company supporting Programme. It supports the growth of micro-enterprise sectors in the country. It provides finance to banks, MFI, and NBFC, and they render loans to microloans up to Rs. 10 lakhs. provide

It comes in three categories such as Shishu, Kishore, and Tarun, which covers loans according to that only. The Shishu stage provides loans up to Rs. 50000 with an interest rate of 1% to 12%. The Kishore stage consists of loans valued from Rs. 50000 to 5 lakhs with an interest rate of 8.60% to 11.15%. TARUN stage values loan up to Rs. 5 lakhs to Rs. 10 lakhs with an interest rate of 11.15% to 20%.

Atal Innovation Mission

NITI Aayog launched the Atal Innovation Mission (AIM) in 2016. It aids to boosts invention and entrepreneurial spirit across the country. It helps to sustain the true meaning of entrepreneurship and innovation at the academic level, research institute, MSME, and Industry levels by qualified mentors. It provides financial aid up to Rs.10 lakhs for 5 years in each ATL.

Startup India Initiative

Startup India is a primary initiative by the Government of India to promote startup culture and build a healthy financial ecosystem for entrepreneurship souls in India. Since the launch, many have enrolled in this program. It is changing the phenomenon of job seekers to job creators.

A Startup India team manages the program and submits reports to the Department of Industrial Policy and Promotion (DPIIT). It includes the 19-point action plan in the form of support to Startups as follows.

-A simple IPR facility and effortless patent filling.

-Advanced infrastructure comprising incubation centres.

– An Adequate and regulated atmosphere consists of tax compliance, improved conditions for setting up a company, faster existing mechanisms, tax benefits, and many more.

– Creation of funds worth Rs. 10000 crores to fund the opportunities. The SIDBI manages this fund to establish an economic balance.

-Online website for startup Portals for a smooth process and faster accessibility of required data. It offers various range of networking for entrepreneurs and stakeholders in the Startup ecosystem.

-Availability of toll-free helplines and emails for better solutions.

Multiplier Grants Scheme (MSG)

Collective Research and Development(R&D) by Industries and Academics promoted under Multiplier Grants Scheme (MSG). MSG aspires to support Research and Development for furnishing the products and packages with quality. Government grants twice the financial support provided by industry; if a product is developed by R&D and marketed at an institutional level. Industry and Institutions can claim financial aid under MSG by filling in the required documents jointly.

Credit Guarantee Fund Trust for Micro and small enterprises

CGTMSE provides an instrument of guarantee cover by allowing collateral-free loans from qualified financial institutions. It backs borrowers with guarantee cover by entering into a contract with an eligible Member Lending Institution(MLI) for MSE. It provides fund and non-fund (Letters of Credit, Bank Guarantee, etc.) credit facilities.

Ministry of Micro, small and medium enterprises, Government of India, and Small Industries Development (SIDBI) jointly incorporated the Credit Guarantee fund trust for Micro and Small Enterprises(CGTMSE). It organizes the stream of institutional credit to MSE. The Credit Guarantee Scheme started to boost the credit delivery system and provide deserved credit to the MSE sector. It provides access to traditional finance from lenders and recognition to unserved, under-served, and underprivileged entrepreneurs.

Startup India Seed Fund Scheme

Startup India Seed Fund Scheme (SISFS) was launched under the Startup India Initiative on 1st April 2021. It provides economic support to startups as proof of concept, prototype development, product trials, market-entry, and commercialization. It promotes where startups can generate finance from angel investors, venture capitalists, commercial banks, and financial institutions. An ideal startup should have a good business idea with a future-oriented fit in the market and growth potential.

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