Various Government Schemes for Indian Entrepreneur
Several government schemes for Indian entrepreneurs are available to encourage them to set up businesses. India is known for its business-friendly atmosphere and keeps providing subsidies and incentives for the growth of industries.
As a businessman, you must always be updated about the various government schemes since it will help to increase your business and achieve your targets.
Various Subsidy Schemes Offered for Indian Entrepreneurs
- CLCSS (Credit Linked Capital Subsidy Scheme)
In India, several Small-Scale Industries (SSI) are unaware of the prevailing government schemes. They continue manufacturing products using outdated technology and also do not possess the proper infrastructure. They lack knowledge regarding government facilities like the availability of finance at subsidized rates. To help them grow, the Indian government has started a scheme named Credit Linked Capital Subsidy Scheme. As per the scheme, a 15% capital subsidy for institutional finance is available to the small-scale units to encourage their use of cutting-edge technology. This subsidy is limited to a maximum of INR 15 lakhs.
- TUFS (Technology Upgradation Fund Scheme)
The textile ministry provides the TUFS for SSIs and MSME industries in the textile sector. It is a very significant subsidy scheme for textile companies in India. You can avail reimbursement of 5% interest in the standard rates charged. You also get to enjoy 20% credit linked capital subsidy on the power loom factories and a 5% exchange fluctuation on FCL’s base rate. You get a privilege of 10% subsidy on selected processing machines and 15% credit subsidy on capital for SSI.
- Market Development Assistance Scheme
As per this scheme, MSEs can take part under MSME India stall in international trade fairs. MSMEs are also entitled to 75% reimbursement of annual fees paid for the first three years and 75% of the one-time registration fees. They are also allowed economy class airfare allowances.
- CGT-MSE (Credit Guarantee Fund Scheme for Micro and Small Enterprises): This is a scheme offering collateral-free loans to SSI and MSME. These organizations can get term loans and working capital loans of up to Rs. 1 crore per unit. Sick units are also provided rehabilitation help under the scheme.
- Cold chain subsidies
In India, agriculture is a prime economic activity, and around 5% of the population is engaged in it. Therefore, it becomes essential to preserve agricultural produce from deterioration. In this consideration, the ministry of the Food Processing sector provides a subsidy for forming a cold chain. As per its scheme, a grant of 50% of the entire plant and machinery cost in general areas and 75% for high-terrain areas and the North-eastern region is provided for cold chain subsidies. The maximum upper limit for this scheme is Rs.10 crores.
These Government schemes for Indian entrepreneur help you to get several tax benefits and also enable you to upgrade your business using modern technology. To get these subsidies, you need to fill the SSI online registration form, following which a provisional SSI registration is provided. With this registration, you can avail of the relevant subsidy scheme.
To develop a successful business in India, information about government schemes for Indian entrepreneur is vital for any business person. 3ecpa provides services like business registration assistance, information regarding various government schemes, preparing relevant documentation, and any other legal processes involved in the setting up of a business.
3E Accounting helps all the businesses in India to start their operations, avail government schemes for an Indian entrepreneur. Get in touch with us, and we will be more than happy to help you.