Government Schemes

Government schemes are launched to encourage small and medium enterprises to develop products or services in India. It will help the Indian economy compete in the international market. In addition, the central government of India has launched various schemes to encourage educated youth to entrepreneurship in India.

The government of India recognized the importance of small businesses in national development and launched several government schemes. Start-up India is one such scheme launched in 2016 by the central government. It primarily aims to encourage new businesses and entrepreneurs in India. In addition, it motivates educated young people to innovate and produce in India.

Aims of Government Schemes

The central government schemes aim to achieve the twin objectives of industrial growth and creating jobs in rural and backward areas. The following are the main aims of the government schemes.

• Encourage self-reliance in rural India.
• Develop industries in rural areas. It will prevent the migration of the poor to urban areas in search of employment.
• Use locally available resources to produce at a low cost.
• Encourage socially backward classes to small businesses.
• Produce high-quality products at low production cost and improved technology.

What is a Startup?

A startup is a new business venture that produces new and improved products and services using the latest technologies. They promote improvement in the standard of living of the people. In addition, startups help in the progress of a country by creating jobs by becoming job-creators.

Aims of Startup India Scheme

• Produce an entrepreneurial environment and introduce entrepreneurial values in educating young people.
• It is one of the most effective government schemes that encourage youth to consider entrepreneurship as a potential career option.
• Create awareness about the process to become an entrepreneur and the benefits of owning a business.
• Identify and fulfil the needs of the under-represented groups. The group includes women, socially and economically backward sections, and underdeveloped regions of the country.
• Motivate educated youth to creative startups and make them successful.

Government Agencies for Small Scale Industries

The two main government agencies for the development of small-scale industries are National Small Scale Industries Corporation (NSIC) and District Industrial Center (DIC).

National Small-Scale Industries (NSIC)

NSIC works under the Micro, Small, and Medium Enterprises. It was launched in 1955 for the growth of small-scale industries. It supports small and medium businesses by improving profitability and creating employment. Also, they enable smooth credit flow by partnerships with banks.

Schemes of NSIC for Industries in Rural and Backward Regions

NSIC has launched several schemes for the upliftment of India’s rural and backward regions. Some government schemes under NSIC are discussed below.

ASPIRE Scheme

The scheme aims to create employment opportunities by encouraging startups. The Make in India initiative is a part of this scheme. Some of the objectives are as follows:

• Increase job opportunities and reduce employment.
• Economic development in the rural areas
• Encourage entrepreneurship
• Create new ways to provide services that are not available in India
• Promote new inventions to strengthen the Indian economy.

National Scheduled Caste and Scheduled Tribe Hub

The scheme was launched to uplift the weaker sections of society. It encourages backward classes to become entrepreneurs to contribute to national growth. The following are the objectives:

•  Improve the socio-economic equality of SC/STs.
• Encourage them to create startups.
• Provide support to SC/ST entrepreneurs
• Increase participation of SC/ST in public procurement, i.e., purchase of goods and services by the government

Marketing Assistance Scheme

Small scale businesses do not have adequate resources for marketing their products. This government scheme aims to provide marketing assistance to small and medium enterprises. Some objectives are:

• Provide marketing assistance by showcasing new products and services in international exhibitions.
• Providing space for new products and services in exhibitions in India are significantly reduced rates. 30% of the area is reserved for SC/ST, women, and other underprivileged sections.
• Organize buyer-seller meets to bring bulk buyers and small businesses to one place.

District Industries Centres (DICs)

DICs help small-scale industries by providing training and assistance to new entrepreneurs. In addition, they help entrepreneurs set up businesses by providing investment assistance in rural areas. Some of the main objectives of DICs are promoting equality at the district level, developing handicrafts, and providing services under one roof.

Schemes of DICs

DICs have developed some schemes to develop rural and backward areas to increase economic equality. A few of the government schemes offered by DICs are as follows:

Subsidy Loan Schemes for Young Professionals

This scheme was launched for Scheduled Castes, Safai Karamchari Families, Other Backward Classes, and Physically Disabled Young Professionals like doctors, engineers, etc. It provides loans at subsidized rates.

Prime Minister Employment Generation Program (PMEGP)

It is one of the best government schemes that aim to provide self-employment opportunities to educated youth. The Ministry of Micro & Small and Medium Enterprises and the Government of India encourage young people to start industrial activities and new businesses with a special focus in rural areas.

District Industries Loan Scheme

The objective is to create and promote self-employment in rural and semi-rural areas. It provides loan assistance to generate employment opportunities, especially for rural artisans.

Conclusion

Small and medium industries are an essential component in national growth. They help in economic development and provide employment opportunities. Government schemes help small-scale industries and entrepreneurs increase their production capacity and profitability. Government loans scheme is an important part of this.

We have discussed several schemes in these notes. Students can use them to prepare for their upcoming CBSE Class 11 & 12 examinations. Besides, Unacademy covers a wide range of topics for their exams. Students can visit the website and access the materials of various subjects.