ASPIRE Scheme

Budget 2025 Updates:

• Revision of classification of MSMEs to include more businesses and companies under the purview of MSMEs.
• Micro-enterprises on the Udyam portal will get credit cards with a Rs. 5 lakh limit; 10 lakh cards will be issued in the first year.
• A new Rs. 10,000 crore Fund of Funds will be launched with an expanded scope.
• A scheme for 5 lakh women and SC/ST first-time entrepreneurs will offer term loans up to ₹2 crore over five years, along with online capacity building.

A Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship (ASPIRE) is a Government of India initiative under the Ministry of MSME. Launched in 2015, it aims to establish incubation and technology centers to boost entrepreneurship, particularly in agro-industries.

With agriculture remaining a primary livelihood source, poverty and unemployment persist despite various government initiatives. ASPIRE addresses this by fostering start-ups, creating jobs, and supporting rural enterprises. It equips entrepreneurs with essential skills, market linkages, and assistance during critical phases to ensure sustainability. Aligned with ‘Make in India,’ it promotes innovation, manufacturing, and long-term employment.

Objectives of ASPIRE Scheme

The objectives of ASPIRE are:

• Creation of new jobs and reducing unemployment
• Grassroots economic development at the district level
• Promoting entrepreneurship culture in India
• Facilitating innovative business solutions for meeting the social needs of the people
• Promoting innovation for further strengthening the competitiveness in the MSME sector

Scope of ASPIRE

The assistance provided under this scheme is used for the following purposes:

• Automation of agricultural practices and related activities.
• Addition of value for agriculture and forest produce.
• Recycling of agricultural pre/post-harvest wastages, animal husbandry, off-farm but linked to farm activities, etc.
• Business models for value addition and aggregation relevant for rural areas, for social impact and the generation of local employment in rural areas.

Eligibility for ASPIRE Scheme

The following are eligible for obtaining the benefits under ASPIRE-

• Any entrepreneur who intends to set up start-ups.
• Any technical/university/research institutes including those in the field of rural and agro-based industry.
• All MSMEs with Entrepreneurs Memorandum Registration.
• Any institute/agency under the Government of India or any State Government in the field of technology, business management, rural development and entrepreneur development or any body corporate under Public-Private Partnership (PPP) mode can set up Livelihood Business Incubation (LBI).
• Any existing incubation centres operating under different Ministries and Departments of Government of India and institutions which include National/Regional level institutions of Government of India or any State Government for setting up centres dedicated to incubation and enterprise creation in the area of agro-based industries.
• Any new incubation centres to be set up by eligible private institutions including industry associations along with academic institutions, universities, government entities, R&D laboratories and technology parks.

The application for this scheme is to be submitted to the Aspire Scheme Steering Committee of the Ministry of MSME. Scheme Steering Committee is responsible for coordination, overall policy and management support.

Components of ASPIRE Scheme

The components of this scheme are-

Livelihood Business Incubation (LBI)

The primary goal of Livelihood Business Incubation (LBI) is to establish incubators that provide skill training, entrepreneurship support, and funding to help youth start businesses. These incubators focus on job creation at the local level, reducing unemployment, and fostering a supportive ecosystem for entrepreneurship. LBIs scale up enterprises by adopting already established commercial activities.

Technology Business Incubation (TBI)

Start-up Promotion through Small Industries Development Bank of India (SIDBI)

The Small Industries Development Bank of India (SIDBI) supports innovative, scalable ideas by turning them into commercially viable enterprises through creative financing options such as equity, venture capital, angel funds, and more. A fund of funds is also established to help achieve this goal.

SIDBI focuses on knowledge initiatives and businesses in technology development, innovation, agro-based industries, entrepreneurship, and value chain linkages across manufacturing and services.

Nature of Assistance under ASPIRE

The nature of assistance provided under ASPIRE are-

• For the LBI which is to be set up by – National Small Industries Corporation (NSIC) or – Coir Board or – Khadi and Village Industries Commission (KVIC) or – Any other institution or agency of the Government of India/ State Government on its own or by any agency

A one time grant of 100% of the cost of Plant and Machinery other than infrastructure and land or an amount of up to Rs.100 lakh, whichever is less is provided.

• For setting up of incubation centres under PPP mode with – National Small Industries Corporation (NSIC) or – Coir Board or – Khadi and Village Industries Commission (KVIC) or – Any other institution or agency of the Government of India/ State Government on its own or by any agency

A one time grant of 50% of the cost of Plant and Machinery other than infrastructure and land or an amount of up to Rs.50 lakh, whichever is less is provided.

• For supporting existing incubation centres under TBI by various Ministries or Departments or Government funded institutions such as – Department of Science & Technology – Department of Biotechnology – The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) – The Indian Council of Agricultural Research (ICAR)

A one time grant of 50% of Plant and Machinery other than infrastructure and land or an amount of up to Rs.30 lakh, whichever is less is provided to set up centres dedicated to enterprise creation and incubation in the area of Agro-based Industry.

• For setting up of new incubation centres under TBI by eligible agencies dedicated to enterprise creation and incubation in the area of Agro-based Industry, a one time grant of 50% of Plant and Machinery other than infrastructure and land or an amount of up to Rs.100 lakh, whichever is less is provided.

Funding Pattern Of ASPIRE

The budget of 2014-2015 allocated a corpus of Rs.200 crore to ASPIRE. The budget of 2019 proposed to set up 80 LBI and 20 TBI in 2019-20 under this scheme. The allocation of the corpus of this scheme are as follows-