A government subsidy typically supports particular sectors of a nation’s economy and promotes entrepreneurship. It can assist financially struggling industries by lowering the burdens of start-ups or entrepreneurs. Atmanirbhar Bharat Abhiyan is the vision of our Hon’ble Prime Minister Shri Narendra Modi. On 12 May 2020, he came up with self a self-reliant India campaign and announced an economic relief package of INR 20 lakh crores to fight the COVID-19 Pandemic. 

During this time, The Government took several bold reforms such as supply chain Reforms for agriculture, Rational Tax Systems, simple and clear laws, and a strong financial system.
 
The Indian government rolled out schemes during COVID-19 to micro, small, and medium enterprises (MSMEs) under the ‘Make in India’ or Atma Bharat mission to create an atmosphere of growth and innovation leading to economic growth and making India a global manufacturing and design export point of the world. Hence the five pillars of Atma Nirbhar Bharat Focus on 
●    Economy 
●    Infrastructure 
●    System 
●    Vibrant Demography 
●    Demand 

Key Initiatives

1. Sector-wise initiatives - The government announced several economic packages for various industries like pharmaceuticals, electronic industry, textiles, and micro and macro industries. These packages provide financial assistance and encourage innovation and entrepreneurship. 
2. Production Linked Incentive (PLI) schemes: - Keeping in view the mission behind Atmanirbhar Bharat, production Linked Incentive (PLI) schemes for sectors like automobiles, pharmaceuticals, automobiles and textiles were launched. Its purpose is to attract investments and bring cutting-edge technology to Indian companies to make them globally competitive. 
3. Self-reliance - Atmanirbhar Bharat Abhiyan aims to see an independent India by bringing the need for structural reforms and promoting local manufacturing. In short, it promotes locally produced products that benefit the whole country. The scheme aims to build a competitive and innovation-driven self -reliant India that can take any challenges. 
4. Digital Transformation - Digital India for Atmanirbhar Bharat aims for inclusive growth in areas of electronic services, job opportunities, products, and manufacturing to transform India into a digitally empowered economy. The primary motto of digital India’s mission is “Power to Empower” with components of the creation of the digital infrastructure, digital literacy, and digital delivery of services. 
5. Promote long-term vision - The Atmanirbhar Bharat Abhiyaan is not just a short-term package, it has a goal of achieving long-term economic transformation. 
Please note that Atmanirbhar Bharat Abhiyan is an ongoing campaign and the Government is still working on new schemes. So, if you are looking for financial assistance and support while you are embarking on your entrepreneurial journey, then you need to contact us.

In the Union Budget, presented on 1st February 2021, the finance minister introduced the production-linked incentive (PLI) schemes for 13 key sectors to create a national manufacturing hub and generate employment opportunities for the country’s youth. These schemes provide financial incentives to eligible companies based on their incremental production and sales over a specified period. 

In the first round of the Production Linked Incentive scheme in attracting investments in mobile phones and electronic components and manufacturing, three schemes were announced later in March 2020. Under this round, incentives of 5 % to 3% shall be extended on incremental sales (over the base year 2019-20), covered under the target segment, to eligible companies for a period of 4 years. Here are some sectors where the PLI schemes are applicable.

1.    Electronics Manufacturing 
2.    Pharmaceuticals
3.    Specialty steel
4.    Telecom and networking products
5.    Electronic technology products
6.    White goods
7.    Food Processing
8.    Textile products
9.    Advanced chemistry cell (ACC) battery
10.    Drones and drone components 
11.    Metals and mining
12.    Renewable energy
13.    Telecom
14.    Chemicals

Under the PLI scheme, eligible manufacturers can get some percentage of the incremental sales revenue as financial assistance over a specified base year. These incentives are disbursed over a period of 5-7 years when you meet the production targets and other eligibility criteria. Availing these scheme can benefit organisations in many ways.

1.    The PLI scheme is based on total output, and makes it an effective scheme compared with others. 
2.    The financial assistance provided under the PLI scheme helps manufacturers expand their business operations and diversify their product offerings in both domestic and international markets.
3.    The PLI scheme provides incentives over a period of 5-7 years and lends support to eligible manufacturers. It can help in creating a stable and conducive environment and achieve holistic growth. 
4.    Job Creation is another benefit of the PLI scheme that creates employment opportunities both direct and indirect, in the manufacturing sector. It contributes to economic growth, improves livelihoods, and addresses the issues of unemployment . 
5.    Enhance competitiveness - The PLI scheme enhance the competitiveness of Indian manufacturers in global markets by reducing their production cost and improving product quality. 

We can say that the production Linked Incentive (PLI) scheme can literally boost domestic manufacturing, reduce dependency on imports, and lead to economic growth. However, it is essential to research and know more about the scheme. For detailed information on a specific PLI scheme, refer to the official notifications, guidelines, and industry associations. 

MSMEs are the backbone of the Indian economy and play a critical role in the self-reliant India campaign. Hence, the government of India came up with the MSME schemes. After agriculture, the Micro, Small, and Medium enterprises (MSME) sector employs the number of people in India. So, it is one of the crucial sectors for economic development. Let’s look at some of the benefits of MSME schemes in India. 

1. Financial support - One of the biggest challenges for an entrepreneur is to access finance. But schemes like Pradhan Mantri Mudra Yojana (PMMY) for helping startups, and MSMEs get support. Under this scheme, small and micro enterprises can avail of loans up to 10 lakhs for their businesses. 
 
 2. Credit Guarantee and Support - Loan securitization for Micro, Small, and Medium Enterprises (MSMEs) is one of the most common problems of small and medium-sized enterprises (SMEs) when trying to get a loan from a financial institution. The reason is many SMEs do not have the necessary collateral to secure a loan. The NCGTC scheme offers financial institutions partial credit guarantees on loans extended to SMEs. This allows SMEs to get a loan at a lower interest rate that they can utilise to expand their business. Government programs in the micro, small, and medium-sized enterprises (MSMEs) sector offer loan guarantees to small businesses looking to expand their business. In addition, access to loans enables small and medium-sized enterprises to enhance their production capacity and competitiveness, resulting in higher profitability and sustainability.

3.Employment opportunities - Government schemes in the micro, small, and medium enterprises (MSMEs) sector have the potential to boost livelihood and self-employment opportunities. The micro and small enterprises sectors account for almost 99% of India's total number of Microenterprises, while the medium and medium enterprises account for 0.01% and 0.5%, respectively.

There are estimated to be 633,9 lakh Micro and Micro enterprises in India. According to the data provided by the Ministry of Small and Medium Enterprises (MSMEs), the number of enterprises in the Micro sector is 633.5 lakh, while the number in the Small sector is 3,3 lakh, and the number in the Medium sector is 0,05 lakh. As per the Government, in FY 22, the number of people employed by the micro, small, and medium enterprises in India was 93,957.

4. Support Make in India Initiative - Make in India Support Scheme: The Make in India initiative is aimed at transforming India into a world-class manufacturing hub. The MSME sector is an integral part of the manufacturing industry in India. Government schemes support MSMEs by providing financial support, technology support, and infrastructure support, among others. This helps MSMEs improve their production capacity and compete in the global market. The schemes also promote entrepreneurship, innovation, and skills upgrading, which are key to the success of Make in India.

Please note these schemes can be availed when you meet eligibility criteria. Get in touch with us to know more about them so that we can help you avail yourself of the benefits of these schemes. 

SubsidyPro will collaborate with you to understand your vision and tell you which scheme you can avail of to get financial assistance and support during your entrepreneurial journey. 

The Technology Development Fund(TDF ) is a government initiative in defence technology as a part of the ‘Make in India’ initiative. The scheme encourages the participation of public and private sector organisations, including academic institutions, and research laboratories to create an ecosystem for enhancing cutting-edge technology capability for defence applications. 

The Technology Development Fund supports various technologies like defence and Aerospace , renewable energy , information and communication technologies, and environmental technologies.

   Eligibility criteria 

Interested MSMEs can submit project proposals to the designated agency where the proposal will go through a rigorous evaluation process including technical, commercial, and financial assessments to determine their alignment with the objectives of various schemes.