Numerous incentives are given both by the Central and State Governments to promote the development of small-scale enterprises
The subsidy provided by the government to the Small and Medium Scale Enterprises (SMEs) proves very effective for their success and promotion.
The Central and the State governments provide several incentives to enhance the growth of the MSMEs.
The best subsidies provided by the government to the SMEs are:
- The Credit Guarantee Fund Scheme: This subsidy or scheme is for the micro and small organizations and enterprises and is completely known as the Under this scheme, the enterprises are provided credit which is in the form of working capital and loans up to the limit of hundred lakhs denominations of the Indian currency. The amount which the Government and SIDBI contribute, stands at 4:1 ratio with the scheme offering assistance of rehabilitation to the units which are sick.
- Technology Upgradation Fund Scheme (TUFS): This particular scheme is for the textile industry introduced by the Ministry of Textiles in April, 1999; especially for the textile and jute industries. The main aim of this scheme is to enhance the technology that is being used in the textile industry
- Technology Upgradation or Modernization or Establishment Scheme: This scheme is specifically meant for the food processing industries. The activities covered under this scheme include inauguration, modernization, and expansion of the various food processing units like the milk, fruits and vegetables, fishery, oil, meat, poultry and many others.
- Integrated Development of Leather Sector: This scheme is specifically meant for the leather industry. It aims to establish and promote the industries like footwear, tanneries, footwear components, and several other leather items.
- Government Subsidy for Small Business – Organic Farming The Government of India under National Project on Organic Farming gives capital free credit to business generation units producing organic fertilizers / bio-fertilizers. NABARD/NCDC will discharge the qualified subsidy amount by DAC ahead of time according to the necessity. You will get half advance subsidy to the taking interest banks for keeping the same in subsidy save subsidize proof of the concerned borrower.
- Government Subsidies for Small Business for Cold Chain – The aim of the scheme of Cold Chain, Value accumulation, and conservation Infrastructure is to give integrated cold chain and preservation infrastructure facilities with no any break from the farm gate to the conamounter. It envelops pre-cooling facilities at manufacture sites, reefer vans, mobile cooling units as well as value addition centers.
- Mini Tools Room and Training Centre Scheme – To help state, the governments locate up Mini Tool Room and Training Centers, the Government of India offers financial support in the variety of one-time grant-in-aid. The major aim of this scheme is to expand more tool room amenities. Essentially, the Govt. needs to offer technical support to the MSMEs and guidance facility in tool manufacturing and tool design to generate employees of capable workers, supervisors, designers, etc.
- “Swachhta Udyami Yojana-Swachhta Se Sampannta Ki Aur” is for extending financial assistance for Construction, Operation & Maintenance of Pay and Use Community Toilets in Public Private Partnership (PPP) Mode and Procurement & Operation of Sanitation Related Vehicles. This Scheme has twin objective of cleanliness and providing livelihood to Safai Karamcharis and liberated Manual Scavengers to achieve the overall goal of “Swachh Bharat Abhiyan” Maximum subsidy of 3.25 lacs .
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