List of Union Government Schemes for Businesses in India

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.

The Union Government of India has launched various schemes to support and promote businesses. These schemes fall under Union Government Schemes for Businesses in India.

Businesses drive economic growth and global recognition. With entrepreneurship on the rise, startups and innovative ventures are boosting the economy.

However, starting a business comes with challenges. To address these, the Government provides financial and structural support through multiple schemes.

Implemented via Ministries, Financial Institutions, Joint Ventures, PSUs, and Banks, these schemes aim to ease business setup and growth. Here are some key Union Government Schemes for Businesses:

Rashtriya Krishi Vikas Yojana

The Rashtriya Krishi Vikas Yojana (RKVY), launched in 2007, was revamped as RKVY – RAFTAAR on November 1, 2017, to boost agripreneurship and agribusiness. This scheme enhances agricultural activities by offering financial support and nurturing the incubation ecosystem.

RKVY – RAFTAAR encourages individuals to establish agriculture-related businesses, providing incubators that guide agripreneurs through business phases and foster innovation in agriculture.

For 2020-21, the Ministry of Agriculture funds startups in sectors like agro-processing, digital agriculture, farm mechanization, fisheries, dairy, and AI. The scheme offers benefits like Agripreneurship Orientation, Seed-stage funding through Agri-Business Incubators, and Idea/Pre-Seed Stage Funding for agripreneurs.

ASPIRE

The A Scheme for Promotion of Innovation, Rural Industries, and Entrepreneurship (ASPIRE) was launched to establish incubation and technology centers, fostering entrepreneurship and agro-industry startups.

ASPIRE supports entrepreneurs by providing incubation facilities, funding, and a technology network. Its key components include Livelihood Business Incubators, Technology Business Incubators, and a fund managed by SIDBI.

Livelihood Business Incubators create local employment, reducing unemployment, while Technology Business Incubators expand tech networks. SIDBI, along with Coir and Khadi industries, manages funds, supporting projects that generate income and boost employment.

MUDRA Bank

The Micro Units Development and Refinance Agency (MUDRA) Bank, established under the Pradhan Mantri MUDRA Yojana (PMMY), supports micro-units by refinancing Micro Finance Institutions (MFIs) and providing loans to small businesses, startups, and entrepreneurs.

MUDRA loans cater to small manufacturers, shopkeepers, vendors, farmers, and businesses like restaurants and bakeries. Interest rates, set quarterly based on RBI policy, typically range between 8.40% and 12.45% for 1 to 5 years.

MUDRA offers three loan categories:

• Shishu: Up to ₹50,000
• Kishor: ₹50,000 to ₹5,00,000
• Tarun: ₹5,00,000 to ₹10,00,000

Multiplier Grants Scheme

The Multiplier Grants Scheme (MGS), implemented by the Department of Electronics and IT, promotes R&D collaboration between industries and academic or research institutions to develop commercially viable products.

This scheme bridges the gap between R&D and commercialization, encouraging industry-oriented research at institutes. If an industry funds R&D for a product, the Government provides up to twice the amount as financial support.

Industries and institutions must jointly submit proposals for funding. The scheme has a ₹36 crore budget, with ₹24 crore from the Department of Electronics and IT, managed under the Technology Development Council.

Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)

The SIP-EIT scheme provides financial support to MSMEs and technology startups for international patent filing, fostering innovation and global recognition.

Launched by the Department of Electronics & IT (MeitY), this initiative helps protect innovative works and enables businesses to secure international patents. It also supports growth in the ICT & Electronics sector by funding patent applications.

Credit Guarantee Scheme for Startups (CGSS)

The Credit Guarantee Scheme for Startups (CGSS), managed by the National Credit Guarantee Trustee Company (NCGTC), was launched to support startups facing funding challenges and high-risk perception from banks.

With a ₹2,000 crore contribution, the scheme provides collateral-free loans to startups. It offers a credit guarantee of up to ₹5 crore per beneficiary for financial assistance, including working capital, term loans, debentures, and venture capital.