Lok Sabha Question No. 161 (UNSTARRED), answered on 2024-11-25
Subject: Promotion of Entrepreneurship
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Thiru Dr. S Jagathratchakan

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## UNSTARRED QUESTION NO. - 161 ANSWERED ON 25/11/2024

## PROMOTION OF ENTREPRENEURSHIP

- 161 Shri S JAGATHRATCHAKAN:

Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state:

- (a) whether  the  Government  subscribes  to  the  view  that  it  can  promote  entrepreneurship  by creating a culture that values and supports it, if so, the details thereof; and
- (b) the details of the initiatives that are proposed to be taken by the Government keeping in mind that this can be done through public awareness campaigns and by recognizing and celebrating the contributions of entrepreneurs?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI  JAYANT CHAUDHARY)

- (a) & (b) The Government of India subscribes to the view that it can promote entrepreneurship by creating  a  culture  that  values  and  supports  it.  The  Government  has  launched  various  initiatives  to foster  an  entrepreneurial  culture  by  promoting  entrepreneurship  education,  providing  targeted training, advocating for inclusivity, and facilitating seamless access to entrepreneurial networks.

The  Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  has  been  working  for promoting  entrepreneurship  development  across  all  sections  of  the  society,  across  the  country through  its  Autonomous  Institutes,  namely,  National  Institute  for  Entrepreneurship  and  Small Business Development (NIESBUD) and Indian Institute of Entrepreneurship (IIE). MSDE has taken up various initiatives in fostering and promoting an entrepreneurial ecosystem through interventions to build entrepreneurial mindset, capabilities.

As per the National Skill Development and Entrepreneurship Policy 2015, the entrepreneurship policy framework has been developed to create an enabling ecosystem of culture, finance, expertise, infrastructure, skills and business friendly regulations. The Government is creating public awareness through Entrepreneurship Awareness Programme  (EAP), Entrepreneurship Development  Programme  (EDP)  and  Entrepreneurship  Skill  Development  Programme  (ESDP). These  programmes  have  enhanced  the  entrepreneurial  skills  of  participants  through  interventions such as Digital Marketing, Financial/Credit and Market Linkages and Industry connect.

Further, to celebrate the achievements and contributions of entrepreneurs, the success stories of entrepreneurs are documented and published in various in-house publications and also given wide publicity through social media, print media and various digital platforms. Social Media initiatives such as 'PM-Udyami talks' on Youtube hosted by NIESBUD, MSDE are being utilized for showcasing and celebrating the achievements of entrepreneurs.

The  details  of  the  initiatives  taken  by  MSDE  to  promote  culture  of  entrepreneurship  are  at Annexure-I . Further, in addition to these initiatives, various Ministries/Departments of Government of India have taken several initiatives to promote entrepreneurship in the country. The details of some of the key initiatives are at Annexure-II .

## ANNEXURE REFERRED TO LOK SABHA UNSTARRED QUESTION NO. 161 REGARDING 'PROMOTION OF ENTREPRENEURSHIP' TO BE ANSWERED ON 25.11.2024

Details of the initiatives taken up by the Ministry of Skill Development and Entrepreneurship (MSDE) for promoting a culture of entrepreneurship

1. Rashtriya Udyamita Vikas Pariyojana on Pilot Basis for PM Svanidhi Beneficiaries MSDE  has  collaborated  with  Ministry  of  Housing  and  Urban  Affairs  (MoHUA)  to  train  PMSVANidhi beneficiaries through pilot project- Rastriya Udyamita Vikas Pariyojana. The project is being implemented by NIESBUD and IIE and includes one week of classroom program and 21 weeks of mentoring and hand-holding support. The project which had commenced from February 2024, has an outlay to train 2050 beneficiaries of PM SVANidhi, with more than 40% participation from  women. The project is  being  funded  as  a  Special  Project  under  Pradhan  Mantri  Kaushal Vikas Yojana (PMKVY).
2. Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) MSDE through its  autonomous  institute  -  NIESBUD  and  IIE  is  implementing  the  skilling  and  entrepreneurship component of Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyaan (PM-JANMAN) - a scheme of Ministry of Tribal Affairs for upliftment of Particularly Vulnerable Tribal Groups (PVTGs). The project  is  being  implemented  with  support  of  Tribal  Cooperative  Marketing  Development Federation of India (TRIFED) in 18 States across the country under which a total of 500 VDVK is to be set up by TRIFED.
3. Capacity Building Programme for Fair Price Shop Owners MSDE, in collaboration with Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, has undertaken a project of Capacity Building Programme for Fair Price Shop (FPS) Owners. The programme will cover 3000 FPS owners at PAN India level in its first phase. The programme has been designed by NIESBUD in collaboration with Department of Food and Public Distribution  to  enable  the  FPS  owners  to  run  their  businesses  in  consonance  with  the contemporary practices being adopted by Retail Entrepreneurs. The programme aims to equip the  participants  with  in-depth  knowledge  of  various  facets  of  entrepreneurship,  financial  and digital literacy, and government support ecosystem. The skilling component of the project is being funded as a Special Project under PMKVY.
4. Establish,  Develop  and  Manage  EDC  and  Incubation  Centers  (IC)  in  North  East Region's  Educational  Institutions  Under  this  Project,  IIE  shall  Establish,  Develop  and Manage Entrepreneurship Development Centre (EDC) and Incubation Centers (IC) in North East Region's  Educational  Institutions. The  key  features  of the Project includes Establishing, developing and managing 30 EDCs and four ICs in eight states of NER, Identifying and training 600 mentors from 30 target districts, Identifying and training 3600 youth from 30 target districts, Incubating 100 business ideas in four ICs, Supporting 900 business ideas in 30 EDCs through convergence and Seed fund for top 50 incubates in four ICs.
5. Entrepreneurship based Skill Development Programme (ESDP) on Solar Entrepreneurship  NIESBUD  is  implementing  a  project  for  Entrepreneurship  based  Skill Development Progamme (ESDP) on Solar Entrepreneurship supported by MSDE in collaboration with  Ministry  of  New  and  Renewable  Energy  under  PM  -  Surya  Ghar  Muft  Bijli  Yojana.  The

programme aims to create skilled entrepreneurs capable of installing and maintaining solar PV systems.

6. Strengthening Entrepreneurial Climate through Capacity Building, Incubation Support, Mentoring and Handholding under SANKALP Scheme MSDE through NIESBUD is implementing  a project for strengthening the entrepreneurship  ecosystem  of different marginalized  sections  of  the  society  with  the  support  of  the  Skills  Acquisition  and  Knowledge Awareness for Livelihood Promotion (SANKALP) Programme of the Ministry of Skill Development and Entrepreneurship (MSDE). The project aims at creating, fostering and promoting the spirit of entrepreneurship  among  the  various  target groups  through  Capacity  Building, Incubation Support, Mentoring and Handholding.
7. Udyam  Disha  -  Mentor  Platform  MSDE  through NIESBUD  has  developed  a  webbased mentor platform to handhold and guide aspiring and existing entrepreneurs from diverse and remote locations. This platform is used as a tool to connect Mentor and Mentee, buyers and sellers, donors and investors, etc. and will act as a repository for information on entrepreneurship, government schemes, financial institutions, investors, donors, etc.
8. National Level Content on Entrepreneurship -MSDE  through  NIESBUD has developed a National level content on Entrepreneurship education to be used by the Government for their different Entrepreneurship Development Programmes in order to bring in uniformity and standardization  in  Entrepreneurship  Development  Education  and  have  measurable  learning outcomes.

## Some of the key initiatives taken up by Ministries/ Departments of the Government of India for promoting a culture of entrepreneurship

1. Ministry of Micro, Small & Medium Enterprises (MSME) Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister's Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new enterprises in the non-farm sector. It aims to provide employment opportunities to traditional artisans/ rural and urban  unemployed  youth  at  their  doorstep.  PMEGP  being  a  Central  Sector  Scheme  assists General Category beneficiaries with Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas.  For beneficiaries belonging to Special Categories such as Scheduled  Castes,  Scheduled  Tribes,  OBCs,  Minorities , Women,  Ex-servicemen,  Physically Handicapped,  Trans-genders,  beneficiaries  belonging  to  Northeastern  Region,  Hill  and  Border areas, and Aspirational Districts,  the  Margin  Money  subsidy  is  35%  in  rural  areas  and  25%  in urban areas. The maximum cost of project is Rs. 50 lakhs in the manufacturing sector and Rs. 20 lakhs  in  the  service  sector.  Also,  own  contribution  of  beneficiaries  under  Special  Category including  women  is  05% and  10% for General Category beneficiaries. Since 2018-19, existing PMEGP/REGP/MUDRA enterprises are also supported based on past good performances with 2nd loan for upgradation and expansion. Under 2nd Loan, maximum project cost admissible for Margin Money (MM) subsidy under Manufacturing sector is Rs. 1.00 crore and for Service sector is Rs. 25 Lakhs. Eligible subsidy on 2nd loan for all categories is 15% of project cost (20% for NER & Hill States).
2. Ministry of Rural Development (MoRD) - The Rural Self Employment Training Institute (RSETI) scheme, is bank-led and Ministry of Rural Development (MoRD)-funded initiative aimed at  promoting skill development and entrepreneurship among rural youth. Established in various districts,  RSETIs  offer  training  programs  that  equip  individuals  with  the  skills  and  knowledge needed to start and manage small businesses. Government also reimburses training expenditure of  the  rural  youth.  In  addition,  RSETIs also  facilitate  access  to  financial  support by  connecting entrepreneurs  with  banks  for  easier  access  to  loans.  This  initiative  helps  people,  especially women, in rural areas start and grow their own businesses, promoting self-reliance. MoRD aims to establish RSETIs in every uncovered district across the country to foster entrepreneurship and support skill development in rural areas.
3. Ministry of Electronics and Information Technology (MeitY) - Ministry of Electronics and  Information  Technology  (MeitY)  initiated  a  scheme  titled  "Technology  Incubation  and Development of Entrepreneurs (TIDE 2.0)" in the year 2019 to promote tech entrepreneurship through financial and technical support to incubators engaged in supporting ICT startups using emerging technologies. The scheme aims to provide comprehensive support to tech-startups in seven thematic areas of National concern by leveraging emerging technologies. The supported thematic  areas  are  Healthcare,  Education,  Agriculture,  Financial  inclusion  (including  digital payments), Infrastructure and Transportation and Environment, and Clean Tech. The Scheme is being  implemented through 51  incubators  through  a  three tiered  structure  with  an  overarching objective  to  promote  incubation  activities  at  institutes  of  higher  learning  and  premier  R&D organizations.  The  scheme  is  envisaged  to  provide  incubation  support  to  approximately  2000 tech start-ups over a period of five years."
4. Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce and Industry The Government with intent to build a strong ecosystem for nurturing innovation  and  encouraging  investments  launched  the  Startup  India  initiative  on  16th  January 2016.  As  per  eligibility  conditions  prescribed  under  G.S.R.  notification  127  (E)  dated  19th

February2019, entities are recognized as 'startups' under the Startup India initiative by the DPIIT. For attaining  specific objectives,  various  programs  are  implemented  by  the  Government  under the Startup India initiative. All the steps undertaken by the Government under the initiative are inclusive and are implemented across age-groups, States/Union Territories (UTs), cities, towns, and  rural  areas.  The  recognized  startups  have  reported  to  have  created  over  15.5  lakh  direct jobs.  There  are  recognized  startups  from  every  State  and  UT  of  the  country. The  details  of various programs undertaken by the Government to promote startups across the country are as under:

- i. Startup India Action Plan: An Action Plan for Startup India was unveiled on 16th January 2016.  The  Action  Plan  comprises  of  19  action  items  spanning  across  areas  such  as 'Simplification and handholding', 'Funding support and incentives' and 'Industryacademia partnership and incubation'. The Action Plan laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country.
- ii. Startup India: The Way Ahead: Startup India: The Way Ahead at 5 years celebration of Startup  India  was  unveiled  on  16th  January  2021  which  includes  actionable  plans  for promotion of ease of doing business for startups, greater role of technology in executing various reforms, building  capacities  of  stakeholders  and  enabling a  digital Aatmanirbhar Bharat.
- iii. Startup  India  Seed  Fund  Scheme  (SISFS): Easy  availability  of  capital  is  essential  for entrepreneurs at the early stages of growth of an enterprise. The capital required at this stage often presents a make-or-break situation for startups with good business ideas. The Scheme aims to provide financial  assistance  to  startups  for  proof  of  concept,  prototype development, product trials, market entry and commercialization. Rs. 945 crore has been sanctioned under the SISFS Scheme for period of 4 years starting from 2021-22.
- iv. Fund of Funds for Startups (FFS) Scheme: The Government has established FFS with corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. The total corpus of Rs. 10,000 crore is envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds. It has not only made capital available for startups at early stage, seed stage and growth  stage  but  also  played  a  catalytic  role  in  terms  of  facilitating  raising  of  domestic capital,  reducing  dependence  on  foreign  capital  and encouraging  home  grown and  new venture capital funds.
- v. Credit Guarantee Scheme for Startups (CGSS): The Government has established the Credit Guarantee Scheme for Startups for providing credit guarantees to loans extended to  DPIIT  recognized  startups  by  Scheduled  Commercial  Banks,  Non-Banking  Financial Companies (NBFCs) and Venture Debt Funds (VDFs) under SEBI registered Alternative Investment  Funds.  CGSS  is  aimed  at  providing  credit  guarantee  up  to  a  specified  limit against  loans  extended  by  Member  Institutions  (MIs)  to  finance  eligible  borrowers  viz. DPIIT recognised startups.
- vi. Regulatory  Reforms: Over  55 regulatory reforms  have  been  undertaken  by the Government since 2016 to enhance ease of doing business, ease of raising capital and reduce compliance burden for the startup ecosystem.
- vii. Ease of Procurement: To enable ease of procurement, Central Ministries/ Departments are directed to relax conditions of prior turnover and  prior experience in public procurement  for  all  DPIIT  recognised  startups  subject  to  meeting  quality  and  technical specifications.  Further,  Government  e-Marketplace  (GeM)  also  facilitates  and  promotes procurement of products and services by the Government from startups.
- viii. Self-Certification under Labour and Environmental laws: Startups are allowed to selfcertify  their  compliance  under  9  Labour  and  3  Environment  laws  for  a  period  of  3  to  5 years from the date of incorporation.
- ix. Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply  for  income  tax  exemption.  The  recognized  startups  that  are  granted  an  InterMinisterial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
- x. Faster  Exit  for  Startups: The  Government  has  notified  Startups  as  'fast  track  firms' enabling  them  to  wind  up  operations  within  90  days  vis-a-vis  180  days  for  other companies.
- xi. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act  (2019): A  DPIIT  recognized  startup  is  eligible  for  exemption  from  the  provisions  of section 56(2)(viib) of the Income Tax Act.
- xii. Support for Intellectual Property Protection: Startups are eligible for fast-tracked patent application  examination  and  disposal.  The  Government  launched  Start-ups  Intellectual Property  Protection  (SIPP)  which  facilitates  the  startups  to  file  applications  for  patents, designs and trademarks through registered facilitators in appropriate IP offices by paying only  the  statutory  fees.  Facilitators  under  this  Scheme  are  responsible  for  providing general advisory on different IPRs, and information on protecting and promoting IPRs in other countries. The Government bears the entire fees of the facilitators for any number of patents,  trademark  or  designs,  and  startups  only  bear  the  cost  of  the  statutory  fees payable. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filling of trademark vis-a-vis other companies.
- xiii. Startup India Hub: The Government launched a Startup India Online Hub on 19th June 2017  which  is  one  of  its  kind  online  platform  for  all  stakeholders  of  the  entrepreneurial ecosystem  in  India  to  discover,  connect  and  engage  with  each  other.  The  Online  Hub hosts Startups, Investors, Funds, Mentors, Academic Institutions, Incubators, Accelerators, Corporates, Government Bodies and more.
- xiv. International Market Access to Indian Startups: One of  the  key  objectives under  the Startup  India  initiative  is  to  help  connect  Indian  startup  ecosystem  to  global  startup ecosystems through various engagement models. This has been done though international Government to Government partnerships, participation in international forums and hosting of global events. Startup India has launched bridges with around 20 countries that  provides  a  soft-landing  platform  for  startups  from  the  partner  nations  and  aid  in promoting cross collaboration.
- xv. Startup India Showcase: Startup India Showcase is an online discovery platform for the most  promising  startups  of  the  country  chosen  through  various  programs  for  startups exhibited  in  a  form  of  virtual  profiles.  The  startups  showcased  on  the  platform  have distinctly  emerged  as  the  best  in  their  fields.  These  innovations  span  across  various cutting-edge sectors such as Fintech, EnterpriseTech, Social Impact, HealthTech, EdTech,  among  others.  These  startups  are  solving  critical  problems  and  have  shown exceptional innovation in their respective sectors. Ecosystem stakeholders have nurtured and supported these startups, thereby validating their presence on this platform.
- xvi. National Startup Advisory Council: The Government in January 2020 notified constitution  of  the  National  Startup  Advisory  Council  to  advise  the  Government  on measures needed to build a strong ecosystem for nurturing innovation and startups in the country  to  drive  sustainable  economic  growth  and  generate  large  scale  employment opportunities.  Besides  the  ex-officio  members,  the  council  has  a  number  of  non-official members, representing various stakeholders from the startup ecosystem.
- xvii. National Startup Awards (NSA): National Startup Awards is an initiative to recognize and reward outstanding startups and ecosystem enablers that are building innovative products or  solutions  and  scalable  enterprises,  with  high  potential  of  employment  generation  or

wealth creation, demonstrating measurable social impact. Handholding support is provided to  all  the  finalists  across  various  tracks  viz.  Investor  Connect,  Mentorship,  Corporate Connect, Government Connect, International Market Access, Regulatory Support, Startup Champions on Doordarshan and Startup India Showcase, etc.

- xviii. States'  Startup  Ranking  Framework  (SRF): States'  Startup  Ranking  Framework  is  a unique  initiative  to  harness  strength  of  competitive  federalism  and  create  a  flourishing startup  ecosystem  in  the  country.  The  major  objectives  of  the  ranking  exercise  are facilitating  states  to  identify,  learn  and  replace  good  practices,  highlighting  the  policy intervention  by  states  for  promoting  startup  ecosystem  and  fostering  competitiveness among states.
- xix. Startup Champions on Doordarshan: Startup Champions program on Doordarshan is a one-hour  weekly  program  covering  stories  of  award  winning/  nationally  recognised startups. It is telecasted in both Hindi and English across Doordarshan network channels.
- xx. Startup  India  Innovation  Week: The  Government  organises  Startup  India  Innovation week around the  National  Startup  Day  i.e.,  16th  January,  with  the  primary  goal  was  to bring  together  the  country's  key  startups,  entrepreneurs,  investors,  incubators,  funding entities,  banks,  policymakers,  and  other  national/international  stakeholders  to  celebrate entrepreneurship and promote innovation.
- xxi. ASCEND: Under  ASCEND  (Accelerating  Startup  Caliber  &  Entrepreneurial Drive), sensitization  workshops  on  startups  and  entrepreneurship  were  conducted  for  all  eight North  Eastern  States  with  the  objective  to  capacitate  and  augment  knowledge  on  key aspects  of  entrepreneurship  and  continue  efforts  towards  creating  a  robust  startup ecosystem in these States.
- xxii. The Startup India  Investor  Connect  Portal has  been  co-developed  under  the  Startup India  Initiative  with  SIDBI,  serving  as  an  intermediary  platform  that  links  startups  and investors in order to help entrepreneurs from various industries, functions, stages, regions, and backgrounds in mobilizing capital. The portal has been built with the aim to enable in particular; early-stage startups located anywhere in the country to showcase themselves to leading investors/ venture capital funds.
- xxiii. National Mentorship Portal (MAARG) : In order to facilitate accessibility to mentorship for startups in every part of the country, the Mentorship, Advisory, Assistance, Resilience, and Growth  (MAARG)  program  has  been  developed  and  launched  under  the  Startup  India Initiative.
5. Department  of  Financial  Services  Pradhan  Mantri  Mudra  Yojana  (PMMY)  was launched  on  08.04.2015  to  extend  collateral  free  credit  up  to  Rs.10  lakh  by  Member  Lending Institutions (MLIs), i.e., Scheduled Commercial Banks (SCBs), Non-Banking Financial Companies  (NBFCs)  and  Micro  Finance  Institutions  (MFIs).  Any  individual,  who  is  otherwise eligible to take a loan and has a business plan for small business enterprise can avail loan under the  Scheme  for  income  generating  activities  in  the  manufacturing,  trading,  service  sectors including activities allied to agriculture across three loan categories, viz. Shishu (loans up to Rs. 50,000/-), Kishor (loans above Rs. 50,000/- and up to Rs. 5 lakh), Tarun (loans above Rs. 5 lakh and up to Rs. 10 lakh) and Tarun Plus (loans above Rs. 10 lakh and up to Rs. 20 lakh for those entrepreneurs  who  have  availed  and  successfully  repaid  previous  loans  under  the  'Tarun' category w.e.f 24.10.2024).

Stand-Up India (SUI) Scheme launched on 05.04.2016 has been extended up to the year 2025. The objective of the Scheme is to facilitate loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs. 1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe  (ST)  borrower  and  one  Women  borrower  per  bank  branch  for  setting  up  greenfield enterprise in manufacturing, services or trading sector including activities allied to agriculture.

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