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Schemes to promote growth and development

9 Government Schemes to Promote Growth and Development

Mar 22, 2022

List of Government Schemes

The Government of India has launched various schemes for the growth and development of all sections of society in India. These government schemes are either central specific, state-specific, or are joint collaborations between one another. 

All the schemes which are introduced hold a different aim to provide support and leverage segments of society. Some of the famous Government schemes and initiatives are talked about in this section.

 

Make in India

This is one of the government schemes that is launched by Prime Minister, Narendra Modi, in the month of September 2014 with the aim to give India a well-recognized platform for value creation activity. This scheme has saved the name of India on the international front as in the year 2013 the hyped bubble bust has fallen in the eyes. 

These government schemes have definitely facilitated investment in India, enhanced the innovation think-tank, and made India hold one of the best-class manufacturing infrastructures.    

Apart from improving the GDP aspect, India got an opportunity to utilize the Indian talent, and the secondary & tertiary sectors boomed. 

It has also given India to improve the Ease of Doing business by easing up the laws and messy regulations. The process of starting a business in India is made more transparent, accountable, and responsive. 

This form of government scheme mainly focuses on 25 industries such as automobiles, automobile components, aviation, biotechnology, chemicals, construction, defense manufacturing electrical machinery, electronic systems, food processing, IT & BPM, leather, media and entertainment, mining, oil, and gas, pharmaceuticals, ports and shipping, railways, renewable energy, roads and highways, space, textile and garments, thermal power, tourism and hospitality, and wellness.

The details of this scheme can be found on the dedicated website (https://www.makeinindia.com/about) which has open corridors for countries, companies, and corporates to invest in India.

If you have any doubt then reach out to HA, to know more about this scheme.

 

Government Schemes – Startup India

During the Independence Day speech in the year, 2015 Prime Minister Narendra Modi announced the Startup India scheme. With this initiative the entrepreneur growth gave an easy path, has promoted many employment opportunities, and some of the restrictive policies such as Land permission, License Raj, Environment clearance, and Foreign Investment Proposals many more has been reduced to a greater extent.

This government schemes is a boon to rural and semi-urban areas of India as many entrepreneurs’ minds have been risen up and a lot of initiatives by women have been seen. 

Startup businesses hold a specific definition and comprise of the following points as mentioned in the Startup India website (https://www.startupindia.gov.in/) are: 

1. If it is incorporated as a private limited company or registered as a partnership firm or a limited liability partnership in India

2. Up to ten years from the date of its incorporation/registration

3. If its turnover for any of the financial years since incorporation/registration has not exceeded INR 100 Crores

4. If it is working towards innovation, development, or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation

Note: An entity formed by splitting up or reconstruction of a business already in existence shall not be considered a ‘Startup’.

On January 16th, 2016 Prime Minister Narendra Modi highlighted the features of this scheme. A 19 point action plan was put-up in front of innovators and entrepreneurs. The event was attended by 1500 CEOs and was also received worldwide acclaim. 

Apart from the development aspect, this scheme has also given tax relief such as 80 IAC, Angel Tax, and many other relaxations. 

One should note that the application should be filed with credible credentials. No fee is charged by the Ministry of Commerce and Industry for the DPIIT certificate of recognition. And in case of any discrepancy found DIPP will publish a ‘negative’ list of funds that are not eligible for this initiative. 

To know more about the intricate details contact HA without thinking much. 

From Business Registrations to Tax filings, HA Experts will take care of all your compliances.
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Mudra Yojana

This form of government schemes was also launched by Prime Minister Narendra Modi on 8th April 2015 with the aim to uplift micro, small and medium enterprises. From this scheme loans up to Rs. 10 Lakh can be given by Small Finance Banks, Commercial Banks, NBFCs, MFIs, and RRBs. 

With this power of digital presence, one can apply via the online portal (www.udyamimitra.in) or via the financial institution which is providing loans. The loan is given in a three-stage process, which is, Shishu, Kishore, and Tarun according to the growth of the business. This loan facility comes under the Jan Dhan Yojana scheme. 

Some of the main objectives of this scheme are:

  • Policies are set for micro and small enterprises
  • Helping small businesses to grow and develop
  • Provide lower class (such as SC/ST) a platform and preference to grow
  • Regulating the entire microfinance institute which are handles trade, manufacturing, and services. 

This scheme gives an opportunity for individuals to avail loans for plant & machinery, working capital, commercial vehicle, and business loan for traders & shopkeepers. By submitting documents such as Identity Proof, Address Proof, Category Proof (if required), Statement of Accounts (of last 6 months), Business Existence Proof, and Income Tax Return. The interest rate under this scheme range from 8.15% to 9.75% for a tenure of 1 to 5 years. For future information and clarity get in touch with HA your financial, accounting, and taxation consultant. 

 

MSME Loans

Micro, Small & Medium Enterprise is called MSME under which service and manufacturing unit comes in. 

Existing MSME Classification
Sector Criteria Micro Small Medium
Manufacturing Investment < Rs.25 lakh < Rs.5 crore < Rs.10 crore
Services Investment < Rs.10 lakh < Rs.2 crore < Rs.5 crore

Under the Atamanirbhar Bharat scheme, the classification has been revised as composite criteria of both investing and annual turnover is been added. This gives a different categorization, such as,

 

Revised MSME Classification
Criteria Micro Small Medium*
Investment Annual Turnover < Rs.1 crore  &   < Rs.5 crore < Rs.10 crore & < Rs.50 crore < Rs.50 crore & < Rs.250 crore

 

As to boast the MSME business and support the hard work now one can avail loan up to 1 crore at 8% within 59 minutes. Availing loans via online platforms has changed the shape of the business no doubt. With automated and systematic flow accountability, transparency and clarity are increased. 

For more details and aspects related to MSME loans, we at HA welcome eligible clients to get started with their main business and leave the rest of the work to us.

 

Government schemes – Sankalp

In order to uplift and enhance the vocational structure of India, the Government of India has launched Sankalp (Skill Acquisition and Knowledge Awareness for Livelihood Promotion), an initiative from the Ministry of Skill Development and Entrepreneurship (MSDE). 

This is one of the government schemes that is supported by the world bank too and a sub-division of the National Skill Development Mission (NSDM). This scheme focuses on the district-level ecosystem. The prominent objectives of this scheme are:

  • To improve the quality of the skill development program 
  • To create a pool of opportunities and industry-led training programs
  • To converge skill training state and central level 
  • To create a robust monitoring and evaluation system
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Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Availability of credits without any hassle is a dream of First Generation Entrepreneurs in setting up their business. As to smoothen the process of credit flow in the MSME sector Government of India has launched this scheme.

This has introduced a “Hybrid Security” which allows credit facility which in turn has not been covered under the Collateral Security Model. As micro and small-scale industries form the backbone of the Indian economy, financial assistance through this scheme without any third-party involvement increases the financial viability of the project and increases opportunities for women entrepreneurs.

What are the fees charged by the CGTMSE?

The fees charged by the trust fund is a percentage of 1% p.a of the amount so sanctioned:

  1. 0.75% – for credit of up to Rs. 5 Lakhs
  2. 0.85% for credit above Rs. 5 Lakhs but up to Rs. 100 Lakh

The credit guarantee available under this scheme is 75/80% of the amount so given to a maximum cap of Rs. 62.5 Lakh / 65 Lakh for a credit facility of up to Rs. 50 Lakhs. The percentage guarantee is 85% for micro-enterprises for a sum of up to Rs. 5 lakhs. The percentage of guarantee is 50% of the amount so sanctioned for a credit of above Rs. 50 Lakhs with a maximum limit of Rs. 100 Lakhs. The tenure of the guarantee is a block of 5 years

Some businesses are not covered under the list of government schemes. Enterprises that are not covered under this scheme are:

  • Self Help Groups
  • Training Institutes
  • Educational Institutes
  • And Retail Trade

NABARD, Foreign Banks, Schedules Commercial Banks, and other 133 eligible institutes are eligible lenders. To avail of this scheme, one has to prepare the business model for it and explain its viability of it to the lending Bank or Financial institute. After it, the bank will need to carry out other work at their end and subsequently release the fund.

To know more about this scheme and the process related to it don’t hesitate to reach HA.

 

Export Promotion Capital Goods (EPCG)

This is one of the government schemes that is launched by the Directorate General of Foreign Trade under Chapter 4 of Foreign Trade Policy 2015-20. The aim of this scheme is to give leverage to the import of capital goods for producing quality goods and services which will enhance the manufacturing competitiveness.

Before opting for this scheme one has to take care of the mandatory obligations

First is, Annual Average in which export obligation is over and above, the average level of exports achieved by the authorization holder in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any. Such an average would be the arithmetic mean of export performance in the last three years for the same and similar products. Secondly, Specific Average which is 6 times the duty saved amount in which the Authorization holder shall also fulfill a minimum of 50% export obligation in each block of years – the first block being of 4 years and the second block being of 2 years.

With respect to obtaining a license under the EPCG scheme, one of the primary requirements is to file an application with the licensing authority of the Director-General of Foreign Trade. And in case of deviating from the compliances heavy penalty is levied, so one should always carefully fill the form.

As it’s a bit difficult to fill the form as there is a lot of obligation that has to be met, we at HA are here to help our valuable clients in filling the form.

Government schemes list

Prime Minister’s Employment Generation Programme

In the year 2008, a credit-linked subsidy program named Prime Minister’s Employment Generation Programme was launched. This scheme is the rise of the merger of two schemes that is Rural Employment Generation Programme and Prime Minister’s Rojgar Yojna. The implementation of this program is being carried out by the Khadi and Village Industries Commission (KVIC).

The objective of this program is to create employment opportunities in urban, semi-urban, and rural areas and facilitate financial institutions for higher credit.

Since the scheme holds many aspects such as negative-list activities, the operational area, and many more. At HA get clear with all the aspects of the scheme.

Contact HA to get more clarity.

We are waiting to serve one who needs help with respect to this scheme.

Government e-Marketplace

As to provide a platform for MSME industries, the Government of India has opened up a platform, Government e-Marketplace (GEM). Without the involvement of a third-party vendor, and an easy reach to the prospective consumer GEM stands as a one-stop solution for the procurement process for consumers and an easy medium for sellers.

Stepping on the digital platform customers (Government officers place an order) on the portal, the order is received on the seller dashboard, the order is made ready for dispatch and reached the end consumer (when payment is made by them within 10 days of order placement).

Through the portal, Central Public Procurement Portal (https://eprocure.gov.in/cppp/) Central Government Organisations can post their requirements. The coordination of both the portals helps in meeting the needs of the customers and minimizing the paperwork.

So if you are one who wants to sell your products to the Central Government organization but facing issues while registering to the platform then contact HA.

To know more about list of government schemes that might be applicable for you, contact HA. We are here waiting to help you. HA’s Experts look into your business model and assist you in choosing best possible government schemes that apply to your business thereby reaping benefits from the government.

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