The Government of India and MSME have taken many protocols and initiatives to help strengthen the backbone of the Indian economy, comprised primarily of startups and small enterprises.
But, before we get to the nitty gritty part, what is MSME? Well, MSME is the Ministry of Micro, Small, and Medium Enterprises, which the Government of India founded in 2007 to promote and develop the competition of small enterprises. There are multiple initiatives taken by MSMEs and the Government to help small local enterprises or startups.
One of the many schemes is the Pradhan Mantri MUDRA Yojana (PMMY). This scheme provides loans up to 10 lakhs to small and micro enterprises. These loans are called MUDRA and are typically given by commercial and small finance banks.
Another scheme is Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSSTU). This scheme aims to provide a capital subsidy of up to 15% for establishing well-improved technology. A capital subsidy is a finance incentive offered by the government to provide finances to capital – a man-made good that helps in the production of goods and services, and in this case, the capital is Technology.
There are many other schemes just like these, which have helped millions of small enterprises and start-ups. The government aspires to provide jobs to 15 crore Indians and promises for MSMEs to contribute to 50% of India’s GDP by 2024.
