Subsidies provide crucial assistance to create a business-friendly atmosphere in a country. According to the World Bank, India ranks 130th in terms of business friendly atmosphere. However, the Government of India offers a host of subsidies and incentives for business and constantly strives to bring SSI/MSME into the pipeline of the nation. A flourishing business contributes to the GDP of the nation and creates employment opportunities. No matter, if you are an entrepreneur or the owner of a well-established business, it is important to hold information regarding subsidies and incentives from the government. Eventually, it would contribute to the growth of your business and hence, achieve your long-term goals. Here is a comprehensive list of Subsidies for Indian Entrepreneurs:
A majority of Small Scale Industries (SSI) in India manufacture products and commodities with outdated technologies and lack of proper infrastructure. These small scale businesses lack the awareness concerning government measures. Be it capital access at minimized interest rates, or advanced and modern technologies in the respective sectors, entrepreneurs fail to bank on the opportunities offered by the government. Hence, the GoI, in an effort to facilitate upgradation of SSI in India, operates a scheme under the name of Credit Linked Capital Subsidy Scheme (CLCSS).
Under the CLCSS, a 15% (limited to a maximum of INR 15 lakhs) capital subsidy is offered to SSI units for institutional finance, to assist the promotion of improved technology. A detailed insight into the CLCSS can be accessed here.
SSI/MSME industries in the textile sector can avail the TUFS (Technology Upgradation Fund Scheme) driven by the Ministry of Textiles. Inducted in the April of 1999, this scheme is one of the primary government subsidies for textile business in India. A 5% interest reimbursement in the normal interest rate charged by the issuing agency is offered under the program.
Additionally, a 5% exchange fluctuation from the base rate on FCL, 20% credit linked capital subsidy for power loom sector, or 15% credit linked capital subsidy for SSI sector, or 5% interest reimbursements and a 10% capital subsidy for specified processing machinery is offered under the scheme. The TUFS subsidy program, a flagship scheme from the Ministry of Textiles, can be accessed here.
The CGT-MSE or Credit Guarantee Fund Scheme for Micro and Small Enterprises is an exclusive program launched by the Government of India to offer collateral-free credit loans to Indian SSI/MSME. Under the scheme, credit facilities, in the form of term loans and working capital loan to Rs. 1 crore per borrowing unit are offered. Additionally, rehabilitation assistance is offered to sick units covered under the scheme. Additional details of the scheme, can be accessed here:
Market Development Assistance Scheme
This program offers funding to Micro and Small Enterprises to participate in International Trade Fairs under MSME India stall. Under the scheme, reimbursement of 75% of the one-time registration fee is offered, along with 75% of annual fees paid by MSME units for the first three years. Additionally, economic class airfare allowances are offered under the scheme. A detailed insight into the scheme can be accessed here:
Cold Chain Subsidies
According to the World bank, approximately 51% of India’s population is indulged in agriculture. Hence, preserving the agricultural produce of the nation is of utmost importance. Hence, the Ministry of Food Processing Industry offers a subsidy for establishing a cold chain. A financial assistance (grant-in-aid) of 50% of the total cost of plant and machinery in general areas and 75% for the North-East region and high-terrain areas, with a maximum limit of Rs. 10 crores, is offered under the plan for cold chain subsidies.
How to avail these subsidies?
The Government of India runs several schemes for promoting the growth of SSI and MSME units. You can easily avail them to upgrade your business and reap tax benefits. Prior to getting subsidy for your business, the SSI online registration form needs to be filled, after which a provisional SSI registration is offered. The registration makes you eligible to avail the relevant subsidy scheme. Well, if you want to save on the hassles of multiple requirements and documents to get your business registered, you can avail the services of Legalwiz. Driven by a team of experts in the respective segments, Legalwiz will assist you with the SSI registration and help you avail the relevant subsidy for your business.