The Central Government has partnered with Swiggy, a fast-commerce and food-delivery company, to enhance internship and job possibilities, according to a statement released on September 7.
An initiative was launched by the Bengaluru-based startup with the Ministry of Skill Development and Entrepreneurship to offer job opportunities and skilling within the company’s food delivery and rapid commerce networks. The 2.4 lakh delivery partners and employees of the affiliated restaurants with Swiggy are anticipated to reap the benefits of the cooperation. Jobs, internships, and training in restaurant management and other areas of retail management are likely to be created as a result of this program.
Skill India Digital Hub
As part of its Skills commitment, Swiggy will provide its employees with access to online training modules, certificates, and courses through its delivery partner platform’s integration with Skill India Digital Hub (SIDH).
According to Jayant Chaudhary, the Union minister of state (independent charge) for skill development and entrepreneurship (MSDE), today’s alliance exemplifies the power of public-private partnerships to expand opportunities for the logistics industry’s workforce. The ministry is hoping that more corporations will get involved because there is a lot of potential in this field.
Almost 2.4 lakh delivery partners and the staff of its 2 lakh restaurant partners will have easy access to online skill development courses, offline certifications, and training modules, according to Rohit Kapoor, CEO of Swiggy Food Marketplace. The company intends to integrate with MSDE’s Skill India Digital Hub (SIDH) across its partners’ apps.
Through its Swiggy Instamart activities, the company will be able to recruit 3,000 people nationwide. Additionally, 200 individuals who have been taught by MSDE will be provided with internship opportunities in its senior-level rapid commerce activities, according to Kapoor.
Introducing Incognito Mode Feature
In the meanwhile, Swiggy announced the debut of its Incognito Mode, a first in the industry that lets customers shop for food and other items anonymously.
Incognito Mode prevents these orders from being saved in the app’s history, so you won’t have to worry about accidentally deleting them when you’re planning a surprise, treating yourself, or making a secret purchase. You may place orders on Swiggy Food and Instamart with confidence when you use Incognito Mode.
According to Swiggy, Incognito Mode is perfect for buying personal wellness products on Swiggy Instamart or any other kind of purchase when the buyer would like to keep their identity hidden.
“As social as our lives are becoming, there are still things we prefer to keep private, and Incognito Mode is designed to address that need,” added Kapoor.
Incognito Mode protects the privacy of customers’ choices, whether they are placing a dinner order or making a short transaction. We are thrilled to provide our users with a smooth experience that allows them to enjoy Swiggy’s numerous services while enhanced privacy is prioritized.
Ten percent of Swiggy users have access to the functionality right now, and the rest will get it in the next few days.
Users can access Incognito Mode by simply toggling a button in their cart. A confirmation message will show up after Incognito Mode is turned on to let you know. Customers can monitor their orders for up to three hours after delivery to address any issues that may arise after they’ve received their packages. Following this, the order is subtly removed from the order history, guaranteeing that the purchase will stay confidential.
The Krishi-Decision Support System (Krishi-DSS), a geospatial platform based on satellite imagery, was introduced by Bhagirath Choudhary, the Minister of State for Agriculture and Farmers’ Welfare.
With the platform’s real-time data on a variety of important agricultural indicators, Indian farmers will be able to manage their crops like never before.
The launch occurred during the National Conference on Space-Driven Solutions for Agriculture Transformation in India, which was a component of the festivities preceding the inaugural National Space Day on August 23, 2024.
Characteristics and Advantages of Krishi-DSS
In India, Krishi-DSS is the pioneering programme of its type, designed with the agricultural industry in mind. Satellite imagery, weather reports, reservoir capacities, groundwater levels, and soil health data are all part of the platform’s extensive data set.
Better decisions and more effective farming practices are made possible since the information is accessible to stakeholders and farmers anytime, anywhere.
Understanding crop trends, encouraging crop rotation, and fostering sustainable agriculture are all made easier by the system’s sophisticated modules for crop mapping and monitoring.
Keeping an eye on soil moisture, water storage, and crop conditions can help farmers anticipate and prepare for droughts.
Field parcel segmentation is also supported by the platform, which enables interventions to be targeted precisely according to the particular needs of each parcel.
Determinants of Indian Farmers’ Yields
The introduction of Krishi-DSS might greatly improve the sustainability and productivity of India’s agricultural sector, marking a watershed event in the country’s history.
The software helps farmers optimise crop productivity and manage risks like pest assaults and extreme weather by combining data from numerous sources. This data provides insights on crop health, weather patterns, and soil conditions.
The importance of early warning systems for rainfall and lightning strikes was emphasised by Agriculture Secretary Dr. Devesh Chaturvedi, who emphasised the revolutionary significance of space technology in agriculture. In order to lessen losses and improve farmers’ livelihoods, the platform’s capacity to deliver such warnings could be crucial.
The inauguration of Krishi-DSS occurred during a symposium that also highlighted the significance of academic, private, and government partnerships in promoting the use of space technology in farming.
The new platform is a major step forward in the long-running collaboration between space technology and Indian agriculture, which began in 1969, according to Nilesh M. Desai, Director of the Space Applications Centre.
Nirmala Sitharaman, the minister of finance, launched the Digital Public Infrastructure for Agriculture programme in the 2023 budget, of which the Krishi-DSS is a component.
There have been several initiatives by the government aimed at increasing investment and attracting more manufacturing to the nation. To facilitate the country’s overall industrial growth, the Indian government intervenes with suitable policies via the Department of Promotion of Industry and Internal Trade (DPIIT) and other Central Ministries/Departments. This Department has implemented numerous programs to support and encourage industry in Andhra Pradesh, Maharashtra, and Uttar Pradesh, among others.
These programs include Make in India, Startup India, PM GatiShakti, the National Industrial Corridor Programme, the Production Linked Incentive (PLI) Scheme, the National Single Window System (NSWS), the India Industrial Land Bank, the Project Monitoring Group (PMG), the liberalization of foreign direct investment (FDI) policy, the Indian Footwear and Leather Development Programme (IFLDP) Scheme, and many more. Project Development Cells (PDCs) have been established in all relevant Ministries and Departments of the Government of India as an institutional structure to expedite investments.
Foreign Direct Investment (FDI) Inflows
Furthermore, the government has taken numerous steps to encourage FDI (Foreign Direct Investment). Except for a few key sectors, the government has instituted a policy that is investor-friendly and allows 100% FDI through the automatic route in the majority of industries. The automated route receives over 90% of the foreign direct investment. By increasing FDI limits, reducing regulatory hurdles, building infrastructure, and improving the business environment, India keeps its economy open to foreign investors.
To improve the ease of doing business and ease of living, the government has taken measures to streamline, digitize, simplify, and decriminalize the government-to-business (G2B) and Citizen Interface throughout all the states and union territories. We have reduced more than 42,000 compliances and decriminalized more than 3,800 provisions so far.
The goal of the Jan Vishwas (Amendment of Provisions) Act, 2023 is to make laws and regulations more compliance-based and to decriminalize small infractions so that trust-based government can progress. A total of 183 sections in 42 statutes overseen by 19 government agencies were decriminalized under the Act. According to the World Bank’s Doing Business Report (DBR), 2020, which was released in October 2019, India is ranked 63rd. After falling to 142nd place in 2014, India jumped 79 spots in just 5 years to 63rd place in 2019.
National Single Window System
As a central hub for all national regulatory approvals and services, the National Single Window System (NSWS) site was established by the Department for Promotion of Industry and Internal Trade (DPIIT). To make conducting business in India easier, the NSWS platform is working to standardize G2B ecosystems.
Through its centralized access to over 270 G2B services, PAN-based authentication and registration, and national gateway, the platform encourages accountability, information symmetry, and transparency within the G2B ecosystem. Businesses can now access the necessary G2B services without having to register for various interfaces, thanks to this development. Various clearance systems of the Government of India and its state governments are integrated into the national site.
The NSWS Portal is now connected with the approval processes of thirty-two federal ministries and departments and twenty-eight state and territory single window systems. With NSWS, one can apply for 2,977 state permissions and 277 federal clearances. The Know Your Approval (KYA) module of NSWS provides businesses with information about 6,198 state approvals and 653 central approvals.
With loan assistance of $500 million and a total project cost of $1288.24 million (INR 7,662.47 crore), the Government of India and the World Bank have signed an agreement for the construction of the Green National Highway Corridors Project (GNHCP) in the states of Himachal Pradesh, Rajasthan, Uttar Pradesh, and Andhra Pradesh. According to the agreement, the GNHCP will have an aggregate length of 781 kilometers. It is anticipated that the final package of the GNHCP project will be finished by May in the year 2026.
Safe and Green Highway
Demonstrating a safe and environmentally friendly highway while taking into consideration climatic resilience and the application of green technologies is a component of the project. Through the utilization of cement-treated sub-base and recycled asphalt pavement, it involves the reduction of natural resource consumption.
Additionally, the project encourages the utilization of locally sourced or marginal materials, such as lime, fly ash, and waste plastic. In addition to that, it employs bioengineering techniques for slope protection, such as the utilization of coco fiber/jute erosion control blankets with shrub/grass plantations, hydroseeding, shotcrete crib walls with vegetation, bamboo plantations, hedge brush layers, interlink chain mesh with grass strips, Geocell with hydroseeding, and other similar techniques.
Reducing Carbon Emission
It is anticipated that the implementation of green technologies and bioengineering solutions, in particular in hilly regions, will result in a reduction of carbon emissions and will guarantee the preservation of natural resources throughout the project’s life cycle, which includes both the construction and operating phases. The purpose of the project is to create roads that are not only smooth and motorable but also provide connectivity to the surrounding communities regardless of the weather. As a consequence, this will lead to the development of the region’s socioeconomic system, as well as to increased trade and connection within the region. Because the selected stretches will increase connectivity to the inner regions of the country, employment possibilities and inclusive growth prosperity will be improved as a result. This will be accomplished by bringing the selected stretches closer to the mainstream areas.
The “Innovation and Agri-Entrepreneurship Development” program is being implemented by the Department of Agriculture and Farmers’ Welfare as part of the Rashtriya Krishi Vikas Yojana (RKVY) program. The program’s objective is to encourage innovation and agri-entrepreneurship by offering financial and technical assistance to startups. A total of 24 RKVY Agribusiness Incubators (R-ABIs) and five Knowledge Partners (KPs) have been appointed to provide training and incubation for entrepreneurs and the implementation of this initiative.
As part of the program, entrepreneurs and startups in the agriculture and allied sectors can receive financial assistance of up to INR 5 lakh during the idea/pre-seed stage and up to INR 25 lakh during the seed stage. This assistance is intended to facilitate the launch of their products, services, business platforms, and other similar items into the market and to assist them in scaling up their operations.
Under the initiative, five key personnel (KPs) and twenty-four research and business incubators (R-ABIs) are responsible for providing training and incubation to startups. To create a platform for the development of agri-startups by linking them with various stakeholders, the Government of India organizes a variety of programs at the national level. These programs include agri-startup conclaves, agri-fairs and exhibitions, webinars, and workshops.
Per the “Innovation and Agri-Entrepreneurship Development” program, a total of 1708 agricultural startups have received financial assistance for INR 122.50 crore, which has been distributed in installments through a variety of KPs and R-ABIs between the years 2019-20 and 2023-24.
Industry Reaction
The Government of India has made significant strides in advancing women’s participation in agri-entrepreneurship. However, there remains an opportunity to further enhance these efforts by improving access to technology, market opportunities, and targeted mentorship.
Sharing his views on the subject, Amit Shrivastava, CTO, nurture.farm opined, “In this context, companies like nurture.farm play a crucial role in reinforcing these initiatives. Nurture.farm’s solutions, such as Mausam Kavach (weather insurance), advanced farm mechanization, and sustainable crop programmes, address key challenges and lay the groundwork for sustainable agriculture. These offerings contribute to building a more resilient agricultural ecosystem, which indirectly benefits women entrepreneurs by fostering a more robust and dependable agricultural infrastructure. Additionally, nurture.retail makes a significant contribution by offering tailored rural credit solutions, high-quality products, and competitive pricing. This support enables agri-retailers to manage their finances effectively and streamline their operations, thereby creating a more supportive environment for women in agriculture.”
“By aligning with government initiatives and leveraging private sector innovations, we collectively advance towards a more inclusive agricultural sector, paving the way for sustainable growth and enhanced opportunities for women entrepreneurs,” he added further.
Listed below are the specifics of the financial assistance that was given to new businesses on an annual basis:
Financial Year
Total Number of Startups Supported
Total Funds Released to Startups (in Installments)
2019-20
58
INR 3.13 crore
2020-21
588
INR 27.43 crore
2021-22
277
INR 20.34 crore
2022-23
253
INR 24.35 crore
2023-24
532
INR 47.25 crore
Total
1708
INR 122.50 crore
What is Rashtriya Krishi Vikas Yojana?
A major initiative of the Indian government’s Ministry of Agriculture and Farmers’ Welfare (MoA&FW), the Rashtriya Krishi Vikas Yojana (RKVY) seeks to improve agricultural and related infrastructure. With 10% of yearly expenditure (including 2% administrative cost), a new component under the redesigned plan RKVY-RAFTAAR was launched in 2018–19 to encourage agripreneurship and agribusiness through financial support and the development of an incubation environment.
By pooling resources, RKVY-RAFTAAR encourages the development of new agricultural ventures through agribusiness incubation. As part of this process, participating academic, technical, managerial, and R&D institutions around the nation will make use of their incubation facilities and skills to their advantage, either individually or in combination. The current institutional agribusiness incubators would get need-based funding to bolster their operations.
As the digital revolution took over the regular life of people by storm, there are not many areas that remain uninterrupted by it. With the huge impetus given to Digital India by the Government of India, the domain of finance and accounting has also undergone tremendous changes.
Beginning with online payment with the help of UPI, it has gone to newer avenues, wherein digital platforms offer credits to the user. It is widely called digital lending. Using the technology of credit assessment and authentication, websites and apps these days allow their users to lend money. Today, banks are not far behind in this domain. They have come up with their own digital lending platforms. Their experience in traditional lending further gives them the edge to sustain themselves in the market.
In India, a large section of the society depends on the unorganized sector for credit which cracks down on poor farmers and micro enterprises with their high rate of interest. In that regard, the popularity of digital lending has, in fact, bought in financial inclusion meeting the hitherto unmet credit requirements of the people. As digital lending got more popular, it became necessary to keep a check on the activities that are taking place in this domain.
The Reserve Bank of India, in August 2022 released guidelines on digital lending so as to ensure the smooth and safe conduct of transactions through digital platforms. This article will look at important parts and implications of the guidelines issued.
The Reserve Bank of India has issued these guidelines keeping in mind the lending ecosystem of Regulated Entities (RE) and Lending Service Providers (LSP). They have classified digital lenders into three different groups. Firstly, those entities that are regulated by the Reserve Bank of India for lending business in itself.
Secondly, those entities authorized to carry out lending are based on the statutes and regulatory provisions of certain other bodies but are not managed by the RBI.
The third groups include those entities that are outside the purview of any kind of regulatory or statutory provisions.
All those lending groups that do not come within the discretion of the above-mentioned categories are free to formulate their own rules and regulations alluding to the recommendations of the working group.
Let’s take a brief look into the highlighting aspects of the guidelines:
Payments
The guideline mandates that all digital transactions should be made between the bank accounts of the regulated entity and the borrower. It should not include any third party or pool account. When they say Regulated Entity, it means any banking or non-banking financial company.
With regard to the payment of fees during the credit intermediation process, the guidelines clarify that the payment is not to be made by the borrower but should be made by the Non-Banking Financial Companies (NBFCs) i.e, the regulated entities.
If at all there are any penal interest or charges, they are to be disclosed in the key fact statement (KFS) on an annual basis and should be based on the outstanding amount of the loan.
Data Privacy
Data Breaches Worldwide
Data privacy is one of the most concerning thoughts in today’s digital world. The guidelines carefully address this issue by delineating that the usage of user information should be need-based. The digital lending platforms are barred from accessing the user’s files, contact lists, call logs, media, and other telephonic functions.
However, they can have one-time access to their camera and microphone to complete their KYC procedures. This will be possible only after the explicit consent of the customer. Additionally, the guideline also states that the user has the option to deny access to certain data, restrict disclosure of certain information to any third party and deny data retention. The user can also revoke the consent given later if they feel so. They can also delete the application and forget the data when it is being uninstalled or deleted.
While signing up, the digital lending platform needs to disclose the credit limit information related to product features and the related costs. It includes the disclosure of the all-inclusive costs of digital loans in the form of Annual Percentage Rates (APRs). The guidelines also prohibit these platforms from increasing the credit limit without the consent of the borrower.
Reporting Lending to CICs
Any form of lending carried out through Digital Lending Applications (DLAs) of RE or LSPs is to be reported to the Credit Information Companies (CICs) irrespective of their tenure or nature.
The guidelines extend these requirements even to those lending carried out through Buy Now Pay Later model. This is with regard to the provisions of the Credit Information Companies (CIC) Regulation Act, 2005, issued by the Reserve Bank of India at regular intervals.
Options to Exit Loans
The RBI guidelines give the user an option to exit the availed digital loan by paying only the principal and proportionate APR without paying any fine within a stipulated time called the cooling-off period or look-up period. The cooling-off time is determined by the boards of the respective regulating entities. Such a time period should not be less than three days for loans having a tenure of seven days or more and one day for loans having a tenure of fewer than seven days. For those borrowers, who continue even after this period, the provisions of pre-payment will be continued based on the extant RBI guidelines.
Grievance Redressal
Every Regulated Entity (RE) and Lending Service Provider is required to appoint a grievance redressal officer. They are supposed to address the FinTech and Digital lending-related complaints issues, faced by the customers.
Apart from that, the issues related to one’s own Digital Lending Applications are also to be addressed by the officer. Apart from facilitating the option to lodge complaints, the contact details of the respective nodal grievance redressal officer have to be visibly displayed on the website of the regulated entity.
To further foolproof the grievance redressal system, RBI allows the user to file complaints through the Complaint Management System (CMS) portal under the Reserve Bank-Integrated Ombudsman Scheme (RB-IOS) in case the complaint is not resolved within 30 days of filing.
The development of technology services has tremendously contributed to the mushrooming of Digital Lending Services, which gained quick popularity among the young and middle-aged population alike. While such schemes have been helpful to a lot of people, it has also resulted in many unethical and fraudulent practices, wherein users get scammed.
Apart from that, various platforms also use this service as a way to charge exorbitant interest rates from users. It is in such a context that the guidelines released by the RBI become all the more relevant. There was a need to manage and control the proliferation of this budding service. These guidelines will ensure that lending through digital platforms happens responsibly wherein both the parties benefit from the advancement of fintech facilities.
FAQs
When and where was RBI established?
The Reserve Bank of India was established on 1st April 1935, in Kolkata.
Where is the central office of RBI?
RBI headquarters is currently located in Mumbai after it was shifted from Kolkata in 1937.
Who is the current governor of RBI?
Shaktikanta Das is the present governor of RBI.
When did RBI release Guidelines for Digital Lending?
RBI released the Guidelines for Digital Lending in August 2022.
We all aspire to do something huge. Regardless of whether we are a student, a business professional, a startup founder, or an entrepreneur to be, our aspiration is what propelled us to greatness.
The Indian government also realized the importance of our aspirations and has launched the “ASPIRE” scheme. The naming of the scheme is also entirely significant, which refers to “A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship” when the acronym is expanded.
Coming under the Ministry of Micro, Small and Medium Enterprises, Government of India, the ASPIRE scheme was launched in 2015, and is aimed to help foster entrepreneurship. Like other innovative Government of India schemes that the Modi-led government has launched, the ASPIRE scheme also has a huge potential to improve the industrial sectors and bring in a period of growth for the country. Much like the growth of Indian startups and unicorn companies of India, which make interesting reads, the schemes of India, which strive to gear up for the new age, Atmanirbhar Bharat, shall also be known thoroughly. This is why StartupTalky has come up with this article that is solely dedicated to the ASPIRE scheme of the Indian government.
Furthermore, the scheme is also aimed to provide financial support to set up Livelihood Business Incubators (LBI) or Technology Business Incubators (TBI). The 3 main components of the ASPIRE scheme can be summed up:
TBI, or Technology Business Incubation – In this category, the ASPIRE scheme will help the incubators of technology tap into the potential technology-related ideas and innovations by utilizing the existing infrastructure and expertise that are available already with the incubators. TBI would encourage the growth of enterprises through the application of technology and innovation. Besides, it will also support economic development strategies for small business development. Also, the TBI incubators would foster growth in local economies and extend mechanisms for technology transfer.
Promotion of Startups via SIDBI referred to as the Small Industries Development Bank of India – SIDBI would usher in creative scalable ideas/innovations and strive to convert them into commercially viable enterprises. A fund of funds is also created under SIDBI, which it can utilize to invest in startups and other early enterprises, thereby converting such ideas/innovations. These investments would only be in the startups that belong to the rural/agro-based industries. There will be no investment for the companies that run on the basis of technology.
The ASPIRE scheme promotes innovation to further strengthen the competitiveness of the MSME sector
It strives to provide monetary aid, which can be utilized to buy plants and machinery other than land and infrastructure, or an amount of INR 100 lakhs, whichever is less.
It also aims to provide practical business experiences to the budding entrepreneurs
Eligibility for the ASPIRE Scheme
If you are wondering about “who are eligible for the ASPIRE government of India scheme?” then all the startups and the traditional enterprises are all in luck because are eligible to reap the benefit of the ASPIRE Yojana.
In the union budget of 2019 that was presented by Finance Minister Nirmala Sitharaman, the government of India stated that around 80 livelihood businesses and up to 20 technology business incubators will be generating close to 75,000 skilled entrepreneurs in the agro-rural industry industries under the ASPIRE Scheme.
As soon as a company fills out an application for the ASPIRE scheme, it is sent to the committee of the ASPIRE Scheme that deals with such applications under the Ministry of MSME, which is entitled to provide support to any companies/startups who want to learn about the scheme.
Now, after a specific company/startup fulfills all the eligibility criteria for the ASPIRE scheme, the Ministry of the government of India which deals with these schemes proceeds with the general processes and offers all the benefits to the beneficiaries under the scheme.
The Goal of ASPIRE | What did the GOI Decide via ASPIRE Scheme?
Funding Allocation of ASPIRE
Under the ASPIRE scheme, the Government of India wanted to build 80 Livelihood business incubators via NSIC, KVIC or Coir Board, or any other institution/agency of the Central or State government on their own or via any of the agency or scheme. This is to be done with the sole aim of promoting innovation, and entrepreneurship and boosting the growth of the agro-industry.
How can Startups Reap the Benefits of the ASPIRE Scheme?
Both traditional enterprises and startups are eligible for the benefits under the ASPIRE scheme. Now, if you are also associated with enterprises and startups that are eligible for ASPIRE, then you should urge the company to send an application to the ASPIRE Scheme steering committee, which works under the Ministry of MSME. This committee will extend support in the overall policy, coordination, management, and more. It will first deal with the general process and would then percolate the benefits to the enterprises that fulfill the eligibility criteria.
Looking at the growth of startups and an increasing sense of passion among entrepreneurs, the Indian Government is trying to make as many efforts as possible to support them. Therefore, the ASPIRE Scheme is yet another initiative by the government of India to promote entrepreneurship and innovative startups in the agro-industry. The above article will help you understand the goals and objectives of the scheme, its eligibility criteria, and how startups can take advantage of it.
FAQs
When was ASPIRE Scheme launched and Why?
The ASPIRE scheme was launched in 2015 and is aimed to help foster entrepreneurship.
What does ASPIRE stand for?
ASPIRE stands for A Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship.
Which Government body controls ASPIRE scheme?
ASPIRE scheme falls under the Ministry of Micro, Small and Medium Enterprises, Government of India.
India is a hub of untapped potential. It is also a land of commercial possibilities that can be realized with the correct tools. The Indian government realizes this talent pool and has taken various initiatives to tap, encourage and help this talent in a bid to build a strong economy.
The government has created 50 startup programs to aid the country’s startup mission and address young entrepreneurs and small and medium enterprises.
The Department of Electronics and Information Technology (DeitY) has established the Multiplier Grants Scheme in an effort to bridge the gap between commercialization and R&D.
The Multiplier Grants Scheme (MGS) intends to stimulate collaborative Research and Development between industries and academics and R&D organisations. The functional aspect of the MGS Scheme revolves around industries contributing to R&D to create items for commercialization at the institutional level. The attraction of participation comes in the form of the government contributing the same amount as given by the industry if the proposal is accepted. However, a combined proposal made by industry and R&D institutions has to be submitted for approval of financial assistance to the government.
Value of Startup Funding Across India from 2015 to 2021
MGS Objectives
There are a number of things that the Indian Government hopes to accomplish through this scheme:
Establish, nurture and deepen the ties between research institutes and the industry.
Speed up the development of indigenous goods and services.
Commercialization and Globalisation through collaborative work.
MGS Implementation Process
To make it effective and efficient MGS has made a few suggestions about its implementation process:
Academic or R&D institutions should submit project proposals in collaboration with industry or industry consortiums. The suggestions for such collaborative research should come from the industry or industry consortium.
Depending on the availability of funds, proposals could be invited for up to 3 times in a year.
A working group within the department will examine and evaluate the proposal and may invite additional domain experts depending on what idea is under consideration. This group will make a recommendation for appropriate budgetary support.
The project’s financial and technical progress will be reviewed regularly by a Project Review and Steering Group (PRSG). PRSG will also have an industry partner on the panel. This group may also recommend grant release, continuity, extension, short-closure or even a new project.
Specified terms and conditions will apply to the proposed scheme’s grants.
The idea and proposal for collaborative research should be industry-specific and presented jointly by the industry or industry consortium and R&D institution. This project proposal should be submitted to DeitY under the MGS program.
The application of such a proposal must be for E&IT innovation in modules, products, packages or services. Due consideration and evaluation will also be given to projects that include prototypes and packaging for commercialization.
The proposal’s focus must be the primary business of the industry.
The chosen institute must have the necessary skills and experience in the suggested field of research. The factors to be taken under consideration are:
The number of professional courses offered by the institution
History of prior research work and projects completed
Number of papers published
Any industry collaborations
Institute’s existence for at least 5 years
The project submission should include market research on modules, products, packages and services to be created. The innovation’s output should be technically and commercially viable.
Some necessities that are must-haves for the industry are:
Staff and technology absorption capacity.
Existing or detailed plans for procurement of Infrastructure for in-house production.
Benefits of Multiplier Grants Scheme
The Government of India has initiated this scheme with expectations to derive benefits that will positively affect the growth of the nation and contribute immensely to the economic development of the country.
All projects undertaken will be focused towards market-oriented R&D.
Improvement in the relevance of education and training.
Industry will be aided towards mobilization of technology and building skills.
Incentives and royalty sharing will contribute towards recruiting and retaining qualified personnel in academia and R&D labs.
Close collaboration between industry, academia and R&D may contribute to a rise in the number of entrepreneurs.
MGS and Its Terms and Conditions
Largely, the MGS’s focus is to improve the entrepreneurial scene in the country and to boost the country’s economy through collaborative innovation and growth. There are other terms and conditions of the scheme that ensure that its benefits and resources give the country an edge on the international stage.
Greater support will be given to innovations that are a breakthrough rather than incremental.
The innovations generated through these projects must be kept in India by the corporations.
The IPR must be located in India so that the country has access and control over it in the event of a national emergency.
Conclusion
With this level of support and encouragement from the Indian Government through the MGS Scheme, progress and growth are on a fast track and new innovations are a near-future reality. The new and budding entrepreneurs have a base support system to build innovation-led businesses that are technologically and commercially viable.
FAQs
What is Multiplier Grants Scheme?
Multiplier Grant Scheme intends to stimulate collaborative Research and Development between industries and academics and R&D organisations. The functional aspect of the MGS Scheme revolves around industries contributing to R&D to create items for commercialization at the institutional level.
How do I apply for a Multiplier Grants Scheme?
The idea and proposal for collaborative research should be industry-specific and presented jointly by the industry or industry consortium and R&D institution. This project proposal should be submitted to the Department of Electronics and Information Technology under the MGS program.
What are the government schemes for startups?
Some of the most popular government schemes for startups are:
The entrepreneurial dreams of Indians have given the country over 94 Unicorns in recent years. This number is expected to cross a century by the end of 2022. Startups across the MSME sector have been at the heart of the Indian economy and generated millions of jobs for people across the country.
It is anticipated that MSMEs alone contribute 8% of the overall GDP, and startups play a huge role in it. But unfortunately, not every entrepreneurial dream gets the chance to take off due to a lack of funds. Keeping this in mind, the Indian government offers various government loans to help passionate entrepreneurs make through.
Budding entrepreneur with a revolutionary idea in mind should use the government loan schemes to transform their ideas into action. For further assistance of all entrepreneurs, we’ve curated this epic guide that has all the information on how to avail of a government loan for a startup.
Government business loans have always provided the necessary financial backing to startups. If a startup requires some financial help, the founders might want to apply for any one of the following government loans for a startup.
Pradhan Mantri MUDRA Yojana (PMMY)
Pradhan Mantri MUDRA Yojana (PMMY) – Government Business Loans for Startups
Launched in 2015, this government loan scheme offers business loans to non-corporate & non-farm small and micro-enterprises. Under this scheme, startups can avail of a loan amount of up to Rs. 10,00,000. The tenure for repayment for this collateral-free loan ranges from one year to five years. Startups can avail of this loan by visiting any nearest small finance bank, microfinance institution, commercial bank, and non-banking financial company.
The Pradhan Mantri MUDRA Yojana provides loans depending on the development stage of the startup. Hence, the applicants can find the following three segregation under this loan:
Loan Type
Coverage
Yearly Rate of Interest
Shishu
Up to Rs. 50,000
1% to 12%
Kishore
Above Rs. 50,000 to up to Rs. 5,00,000
8.60% to 11.15%
Tarun
Above Rs. 5,00,000 to up to Rs. 10,00,000
11.15% to 20%
Startup founders can apply for this loan if they’re a trader, shopkeeper, vendor, etc. Just visit any lending institution mentioned above or login to a PSB or 59 minutes portal and do the needful. They will guide further. Startups can utilize this loan as a working capital loan through the offered MUDRA card.
Pradhan Mantri MUDRA Yojana (PMMY) – Government Business Loans for Startups
MSME Loan in 59 Minutes
MSME Loan for Startups Approved in 59 minutes
As the name suggests, this loan offered by the government is approved in 59 minutes flat. Launched by SIDBI, this loan is ideal for small and medium-size startups that need capital assistance of under Rs. 10, 00,00,000 at a somewhat lesser interest rate. In some cases, the interest rate is as low as 8%.
To avail of this Public Sector Banks (PSB) loan scheme, startup founders can visit the Central Bank of India, Canara Bank, Bank of Baroda, Bank of India, SBI, etc., for a hassle-free loan application process. Once the loan application is processed and approved, the applicants can get the amount within 8-10 working days. Startup founders can also visit the PSB loan in 59 minutes portal to get more details about this loan scheme and apply.
Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises
CGTMSE for starting new Business
Also known as CGTMSE, this government business loan provides collateral-free loans to startups. Launched by the SIDBI and MSME ministry, this loan scheme offers a loan amount of up to Rs. 2,00,00,000 to both new and existing startups. A special preference is given to women entrepreneurs under this loan scheme. Under the CGTMSE, startups can get a collateral-free loan of up to Rs. 10,00,000. But for any amount above this value, startups will have to provide collateral in the form of any building or land attached to the primary business.
Those who want to avail of the CGTMSE loan can approach a scheduled commercial bank or select a regional rural bank classified by NABARD for loan approval. Both new and existing startups can apply for this loan engaged in manufacturing activity, retail trade, and service activity.
Credit Facilitation Through Bank by NSIC
NSIC Launched by the MSME ministry for business loans
The NSIC has signed an MoU with various banks to provide super-fast and hassle-free loans to different startups. Launched by the MSME ministry, this one-of-a-kind loan facility is provided by NSIC under the central government. The best part of this government loan is that NSIC also helps complete the full documentation and legal formalities to quickly avail of the loan.
Small or medium startups needing a short-term loan for maintaining working capital or other operations should consider applying for this loan. It is a reasonably low-interest loan and can be availed by visiting any well-known banking institution like the HDFC bank, ICICI bank, Axis bank, YES bank, etc.
Credit Link Capital Subsidy Scheme
Also known as CCLCSS, it is a loan provided by the MSME ministry and the government of India to startups for technology upgradation. Startup founders that own a manufacturing enterprise, textile startup, fabrication unit, or any business that uses machines and equipment should avail of this loan of up to Rs. 15 lakh to upgrade to the latest technology. This loan helps startups stay up-to-date regarding technology to withstand the competition at local and global levels.
How to Choose the Best Loan Ideal for Your Business?
Now that the information related to top business loans offered by the government to startups is made available, some entrepreneurs might be confused about which one to proceed with. The answer is pretty simple. Every loan discussed above has a different purpose, interest rate, credit limit, etc. The startup founders should go ahead with the one that helps the business stay afloat and even scale in the best way possible.
To apply for any of the above-discussed government business loans, startup founders can head to the respective website of the financial institution providing the loan, fill out the application, and wait for someone from the organization to contact them. Business loans offered by Government are sure to help you accelerate your business growth, so they should be applied for.
FAQs
What are the Government loans for startups?
List of Government Loans for Startups are:
Pradhan Mantri MUDRA Yojana (PMMY)
MSME Loan in 59 Minutes
Credit Guarantee Fund Scheme for Micro & Small Enterprises
Credit Facilitation through Bank by NSIC
Credit Link Capital Subsidy Scheme
How much loan can you get under the MSME government business loan scheme?
Under the MSME government business loan scheme, as an MSME, a startup/business can get a loan sanction of up to Rs. 1 crore within just 59 minutes.
What is the eligibility for a startup business loan?
Eligibility Criteria for Startup Business Loan are:
Resident citizen of India
Minimum CIBIL score of 700
Business should at least 2 years old
Annual income of business should be at least INR 2 lakhs
Applicant Should be between 21 years to 65 years of age
The Government of India owns the Life Insurance Corporations of India (LIC), which is an insurance and investment business. The Life Insurance Corporation of India (LIC) was established on September 1, 1956, when the Parliament passed the Life Insurance of India Act, which nationalised the Indian insurance business. The state-owned LIC was formed by the merger of over 245 insurance companies and provident organisations. It both encourages and results in the institutionalisation or mobilisation of savings.
Since then in the field of life insurance, the LIC has near-monopoly, as the amount of life insurance business through postal insurance and state insurance is relatively much smaller. Life insurance is a very important form of long term contractual savings. The total volume of the insurance business has been growing in the country with the spread of knowledge and consciousness about insurance in the country.
However LIC can grow at a faster rate if the organizational and operational efficiency of LIC can be improved, new kinds of insurance covers are introduced, its services are extended to smaller lesser-known places and the general price level is kept stable. As of 2019, the Life Insurance Corporation of India had a total life fund of ₹28.3 trillion. The total value of sold policies in the year 2018-19 is ₹21.4 million. Life Insurance Corporation of India settled 26 million claims in 2018–19. It has 290 million policyholders.
LIC invests in various sectors such as cement, banks, chemicals and fertilizers, transmission and electricity, engineering, construction and infrastructure, electrical and electronics, healthcare, hotels, finance and investments, information technology, metals and mining, motor vehicles, oil and natural resources, retail, textiles, transportation and logistics.
Among those companies, LIC’s holding I term of value in 2012 was established to be the highest in ITC (₹27,326 crores), followed by RIL (₹21,659 crores), ONGC (₹17,764 crores), SBI (₹17,058 crores), L&T (₹16,800 crores), and ICICI Bank (₹10,006 crores). The share price drop in ITC on 18 July 2017 had caused LIC a major loss of around 7000 crores during the financial year.
Where LIC also holds a 51% stake in IDBI Bank, making it the only insurer in India to own a bank, since regulations prohibit insurers from holding more than 15% stake in any company.
LIC subsidiaries
LIC Pension Fund Limited
LIC Pension Fund Limited is India’s first pension fund. It was set up by Life Insurance Corporation (LIC) in November 2007. LIC is one of India three public sector pension fund managers and has a one-third share in all investments made through Central and State Government NPS. It is also open to the private sector as a fund manager. LIC Pension Fund is the first Pension Fund Company in India to be incorporated and to receive commencement of business certificate.
The government of India introduced the New Pension System (NPS), with effect from 2004. Pension Fund Regulatory And Development Authority (PFRDA) through a process of competitive bidding, has appointed Life Insurance Corporation (LIC), State bank of India (SBI), UTI Asset management company (UTI –AMC) and as The Pension Fund under the NPS. “NPS-Lite Model” is designed to ensure ultra-low administrative and transactional costs, so as to make such small investments viable.
National Pension System NPS Lite makes pensions possible for small investors. It is an initiative of the Pension Fund Regulatory and Development Authority (PFRDA), the apex body established by the Government of India to regulate and develop the pension sector in India. NPS extends help to the weaker and economically disadvantaged sections of the society with their limited investment potential. This is why PFRDA has launched NPS Lite to specifically target the marginal investors and promote small savings during their productive life. It also aims at building up a corpus sufficient enough to buy an annuity for their old age.
LIC Cards services limited came into existence in 2008 as a 100% subsidiary of LIC to bring out its own credit cards in the market. LIC offers four types of credit cards and each of these cards come with some common features and some distinct features that make them unique. LIC credit cards are best suited for you if you regularly pay a large LIC premium. LIC cards are uncapped, while other cards have a cap cashback and reward points that can be earned on premium payments.
The types of LIC Cards
The types of LIC cards are:
LIC Gold Credit Cards (for regular users)
LIC Platinum Credit Cards (for shopping and rewards)
LIC Titanium Credit Cards ( for travel and hotel booking)
LIC Signature Credit Card (for premium services)
Fee/Charge
Amount/rate
Finance Charges on Revolving Credit and Cash Advance
3.25% p.m. (46.78% annual)
Free Credit Period
Free Credit Period Up to 50 days
Cash Withdrawal Fee
2.5% of the amount withdrawn (min. Rs. 500)
Cash Payment Fee
Rs. 100
Over Limit Fee
3% of the amount (min. Rs. 500)
Foreign Currency Mark-up Fee
3.5% of the transaction amount
There are certain criteria that the financial institution looks into before accepting your credit card application. Your credit score, age, monthly income, location etc. are some of the parameters that you should keep in mind before you apply for a credit card. To apply for a LIC credit card, you should be above 18 years and should either be a LIC agent or a LIC policyholder. The document required to apply for a LIC credit card are:
Proof of Identity – PAN Card, Aadhaar card, Driver’s License, Passport, Voter’s ID, Overseas Citizen of India Card, Person of Indian Origin Card, Job card issued by NREGA, Letters issued by the UIDAI.
Proof of Address – Aadhaar card, Driver’s License, Passport, Utility Bill not more than 3 month’s old, Ration Card, Property Registration Document, Person of Indian Origin Card, Bank Account Statement.
Proof of Income – Latest one or 2 salary slips (not more than 3 months old), Latest Form 16, Last 3 months’ bank statement.
IDBI Bank Ltd., as a full-service universal bank provides a wide gamut of financial products and services encompassing deposits, loans payment services and investment solutions. Understanding today’s fast-paced and digital world they offer an innovative range of digital services that complement the pan India network of branches and ATMs. The bank also has 24×7 customer care facilities to help its customers reach out. IDBI Bank Ltd is operating as a full-service universal bank that serves customers from all segments.
As a universal bank, IDBI Bank Ltd. touches the lives of millions of Indians through a wide variety of banking products and services. The Bank also has an established presence in associated financial sector businesses including capital market, investment banking and mutual fund business. IDBI’s very business philosophy is to provide relevant financial solutions, ensure maximum customer convenience through easy access to branches and ATMs as well as digital offerings and excellence in customer service.
IDBI Subsidiaries
The vision is to be the most preferred and trusted bank enhancing value for all stakeholders defining and shaping our day-to-day business, helping us to build long-lasting relationships. IDBI Bank Limited has been categorized as a ‘Private Sector Bank’ for regulatory purposes by the Reserve Bank Of India with effect from January 21, 2019, consequent upon Life Insurance Corporation Of India acquiring 51% of the total paid-up equity share capital of the bank. To cater to its ever-expanding needs, IDBI Bank has formed subsidiaries and joint ventures across diverse areas of the Banking and Financial System.
Some of its subsidiaries are:
IDBI Capital Markets and Securities Limited (ICMS)
Its businesses include Merchant Banking, Stock Broking, Distribution of Financial Products, Corporate Advisory Services, Debt Arranging and undertaking, Portfolio management of pension and Research Services.
IDBI Intech Limited (IIL)
The major business activities of the company are Information technology services, information security practices, national contact centre and outbound sales team.
IDBI Asset Management Limited (IAML)
IAML is the investment manager of schemes launched by IDBI Mutual Fund. The Fund offers a bouquet of products inequity and risk profiles of investors.
IDBI Trusteeship Services Ltd (ITSL)
The company operations are acting as trustees to securitization transactions, acting as Bond/Debenture trustee, Security trusteeship assignments, Share pledge Trustee, Venture Capital Fund, Safe Keeping and other trusteeship services.
IDBI Federal Life Insurance Company Limited (IDBI Federal)
The Company’s life insurance business comprises individual life and pension and group life, including non-participating, health and linked segments.
FAQ
In which sectors LIC invest?
LIC invests in various different sectors such as cement, banks, chemicals and fertilizers, transmission and electricity, engineering, construction and infrastructure, electrical and electronics, healthcare, hotels, finance and investments, information technology, metals and mining, motor vehicles, oil and natural resources, retail, textiles, transportation and logistics.
What is LIC Pension fund limited?
LIC Pension Fund Limited is India’s first pension fund. It was set up by Life Insurance Corporation (LIC) in November 2007. LIC is one of India three public sector pension fund managers and has a one-third share in all investments made through Central and State Government NPS. It is also open to the private sector as a fund manager. LIC Pension Fund is the first Pension Fund Company in India to be incorporated and to receive commencement of business certificate.
How many types of Cards does LIC provide?
LIC Gold Credit Cards (for regular users) LIC Platinum Credit Cards (for shopping and rewards) LIC Titanium Credit Cards ( for travel and hotel booking) LIC Signature Credit Card (for premium services)
Nitin Konde
