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Subsidies, a gift from Govt to start ups


Start ups are those dreamers who believe in  converting their gamut of ideas into the real world entities. Government has also help these start ups with subsidies to start their own businesses.

Startup companies can come in all forms and sizes. Some of the critical tasks are to build a co-founder team to secure key skills and resources in able to conduct research and build a first minimum viable product (MVP) to validate, assess and develop the ideas or business concepts. In addition to this, opportunities to establish further and deeper understanding of the ideas or business concepts as well as their commercial potential are important.


Government subsidies for various Entrepeurnership

downloadGovernment has encouraged rapid development of infrastructure projects in agriculture and allied sectors including dairy, meat, fisheries and minor forest produce. Many farmers turn to loans to start up, but those come with repayments with interest. Grants, on the other hand, don’t require repayment. Although applicants often must compete for grants, the funding type can help farmers get through the initial stages. Government has encouraged rapid development of infrastructure projects in agriculture and allied sectors including dairy, meat, fisheries and minor forest produce.


  • The scheme will be implemented in those States which amend the APMC Act, wherever required, to allow direct marketing and contract farming.
  • Credit linked back-ended subsidy shall be provided on the capital cost of general or commodity specific infrastructure for marketing of agricultural commodities and for strengthening and modernization of existing agricultural markets, wholesale, rural periodic or in tribal areas.
  • Infrastructure for supply of production inputs and need-based services to the farmers will be given
  • Under the scheme, the entrepreneur will be free to locate the marketing infrastructure project at any place of his choice determined on the basis of economic viability and commercial considerations.
  • Rate of subsidy shall be 25% of the capital cost of the project. In case of North Eastern States, in the States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, hilly and tribal areas, and to entrepreneurs belonging to Scheduled Caste (SC)/Scheduled Tribe (ST) and their cooperatives, the rate of subsidy shall be 33.33% of the capital cost of the project.


Organic farming requires biological and organic inputs in lieu of chemical inputs and there is a need to augment the production of bio- fertilizers or organic fertilizers in India. Accordingly the government of India under national project organic farming provides capital investment subsidy for commercial production units manufacturing organic fertilizers/ bio fertilizers.


  • The entrepreneur can set up the organic farm at any place where it will be technically feasible and commercially viable. the estimates total cost for establishing a new fertilizers unit of 200 ton/ annum capacity is about Rs 160 lakh and the estimated total project costs for establishing a new fruit and vegetable waste will be of Rs 200 lakh.
  • The scheme provides credit linked and back- ended capital investment subsidy.
  • Bio- fertilizer and bio pesticide unit are provided with a capital subsidy of 25% of total project cost subject to a maximum of Rs. 40 lakh per unit.
  • Fruit and vegetable compost units are provided with a capital subsidy of 33%. Thus total project will cost around rs. 60 lakh

Also read: SBI start up fund of Rs 200 crore initiated

The government of India accords top priority for the development of food processing indusry in India to reduce food spoilage and control the rising food inflation. The government has provided subsidies for setting up of food parks in India.


Ministry of food processing industry covers setting up technology upgradation, modernisation of food processing industries in fruits and vegetables, pulses etc. The scheme provides 25% of the cost of plant and machinery and technical civil works subject to maximum of Rs. 50 lakh in general areas and 33% up to Rs. 75 lakh in difficult areas.

Government schemes for NRIs

  • The government of India is starting, startup industrial unit for Non Resident Indians returning to India. They will find that there is profusion of endowment available in India.
  • Loans provided for business ventures can be for equipment and fixed assets as well as working capital, if a project is viable and the entrepreneur has approximately 25% of his own funds and Then 75% can be financed in addition to this loans can be availed for working capital also.


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