Schemes

ASPIRE Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship

February 17, 2025February 19, 2025startupstoryhubComment(0)

MSMEs, which contribute approximately 30% to India’s Gross Domestic Product (GDP), are supported vigorously by the government through various schemes to sustain the business potential of the country. A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE Scheme) is one such flagship program, initiated by the government to provide support to MSMEs through funding for training, technology, etc. Launched by the Ministry of Micro, Small, and Medium Enterprises, this scheme is a significant step taken for empowering small businesses to flourish in the competitive business realm.

If you want to know more about ASPIRE Scheme MSME and how you can avail it for starting your own business, delve into this blog, providing detailed information about ASPIRE scheme’s features, benefits, components, etc.

ASPIRE Scheme: Economic Support to Small Entrepreneurs

Introduced in 2015, the full form of the ASPIRE scheme is – A Scheme for Promotion and Innovation, Rural Industries, and Entrepreneurship. The scheme aims to ease the financial burden of MSMEs, struggling in today’s competitive business ecosystem. From promoting entrepreneurship to creating employment opportunities, and enhancing innovation, this scheme empowers MSMEs by providing all avenues to grow and develop. Additionally, it equips small entrepreneurs with the required knowledge and skills to build sustainable businesses across agriculture and related sectors such as manufacturing, food processing, and services.

Note: The ASPIRE Scheme launch date is 16th March 2015.

Exclusive features of the ASPIRE Scheme:

ASPIRE Scheme MSME is a useful scheme for small businesses to build and expand their businesses. It is integrated with various features that are listed below:

Rural Development: The scheme gives special focus to the rural areas to lessen the development gap between urban and rural regions.
Boosting innovation: It offers the center stage to innovative ideas and imparts the necessary support to bring those ideas to life by converting those business ideas into successful ventures.
Long-term growth: This scheme provides small businesses required assistance to thrive their businesses and achieve long-term growth.
Collaboration: Through public-private partnerships, efforts are made to connect with government agencies and private institutions to maximize resources and enhance the scope of business success.

Fund Allocation to ASPIRE Scheme

In the 2014-2015 budget, Rs.200 crore was allocated to ASPIRE. In the 2019 Budget, 80 LBI and 20 TBI were planned to be built under this scheme. The fund allocation for different activities is mentioned in the table given below:

Activities	Fund allocation
Establishment of Incubation Centres by NSIC, Coir Board, KVIC, or any other institution or agency of the Government of India/State Government	Rs.62.50 crore
Building Technology Incubation Centres (TBI)	Rs.61.50 crore
Fund of Funds for Start-ups	Rs.60 crore
Capacity Building, including Engagement of Consultants, Surveys, Awards, Exposure Visits, Studies, Monitoring and Evaluation, etc.	Rs.17.75 crore
Administrative cost @ 10% of the item included in the 3rd row of the table	Rs.6.25 crore
Creation, maintenance, and updation of the database included in the Technology Centres network	Rs.2 crore

Budget 2025 Highlights For ASPIRE Scheme

MSMEs categorization will be reviewed to cover more businesses under the umbrella of MSMEs.
Credit cards with a Rs. 5 lakh limit will be provided to the Micro-enterprises on the Udyam portal. Accordingly, there will be issuance of 10 lakh cards in the first year.
Initiation of new Rs. 10,000 crore Fund of Funds with larger scope.
Apart from online capacity building, loans up to ₹2 crore over five years will be provided under the scheme to 5 lakh women and SC/ST first-time entrepreneurs.

ASPIRE Scheme Core Segments

Over the years, the gamut of the ASPIRE scheme MSME has expanded, adding more and more benefits, including the setting up of 80 LBIs (total budget allotted is ₹62.5 crore) and 20 TBIs (total budget allotted is ₹61.5 crore).

Livelihood Business Incubators (LBI):

The main objective of establishing LBIs is to encourage people towards entrepreneurship and help them start businesses, based upon effective models. These LBIs are significant for imparting training and managing other finances.

Look at the notable aspects of LBIs:

LBIs can be established through the National Small Industries Corporation (NSIC), Khadi and Village Industries Commission (KVIC), Coir Board, or any other institution or agency of the central or state government.
It includes financial support of ₹100 lakh or 100% cost of plant and machinery (excluding land and infrastructure) whichever is less.
Agencies under the PPP model are also eligible to build LBIs.
It also covers the financial aid of ₹50 lakh or 50% cost of plant and machinery (excluding land and infrastructure) whichever is less.

Technology Business Incubators (TBI):

Under this segment, the set up of TBI facilities is facilitated to empower businesses with smart technology tools and equipment to innovate and disrupt today’s market. This step will boost regional economic growth, which in turn will boost nationwide growth. These Business Incubators aimed at fostering entrepreneurship in young individuals to let their innovative ideas come to the floor and launch successful businesses.

Features of Technology Business Incubators

Technology Business Incubator will complement the existing center or state-managed incubators for agriculture-related industries and set up new incubators.
These incubators are given Monetary support of ₹30 lakh or 50% of the cost of plant and machinery (excluding land and infrastructure), whichever is less.
Financial aid of ₹100 lakh or 50% of the cost of plant and machinery (excluding land and infrastructure), whichever is less, is pooled for the establishment of new centers.

SIDBI funding initiatives:

Through SIDBI, it is proposed that financial support of ₹60 crore will be provided to individuals having effective ideas to turn those into commercial enterprises. Following this, business training will be given to them for building technology-enabled start-ups. Fostering innovation in agro-business, and the value chain of related businesses, these initiatives are powerful for thriving entrepreneurs in today’s competitive business environment.

Who is Eligible for the ASPIRE Scheme?

To apply for the ASPIRE scheme MSME and gain financial assistance, Individuals need to follow the seamless procedure that is listed below:

Any individual who wants to start a business should have an age of more than 18 years.
Any technical/research institutes/universities, centered around rural and agro-based industries.
Institutions registered under the Societies Registration Act of 1860 such as Production Co-operative Societies and Charitable Trusts.
Any Indian Government or State Government institution or agency involved in the industry related to technology, rural development, entrepreneur development, or business management.
LBI can be established by any private company running under the PPP model.
Existing incubators.
Incubators that got government subsidies earlier for similar activities under incubation or under any other plan of the Indian Government or State Government are not eligible.
Any existing incubation centres working under different agencies like Ministries and Departments of Indian Government or Institutions including National / Regional level institutions of GOI / State Governments to build a center focused upon incubation and enterprise establishment in the field of Agro-based Industries.
New incubation centers are built by eligible private institutions including Industry Associations, Educational Institutions, R&D laboratories, Universities, Government Entities, and Technology Parks.

Also Read: Eligibility Criteria for Section 80IAC Tax Exemption for Startups in India

How to Apply Online for the ASPIRE Scheme? : Step by Step

To apply for the ASPIRE scheme MSME conveniently, follow the simple step-by-step process that is listed below

Step1: Firstly, click on this link https://aspire.msme.gov.in/ASPIRE/AFHome.aspx (ASPIRE Scheme Home Page) to register on ASPIRE.

Step2: After entering the site, “Click on apply for new Lbi”.

Step3: Select the agencies either Govt. or private.

Step4: Complete the application form by entering the required details.

Step5: Submit the application form to the ASPIRE Scheme Steering Committee under the Ministry of MSME.

Step6: The committee will review the application and accordingly, the process will go further.

Note: The Scheme Steering Committee is authorized for the overall policy, coordination, and management assistance. The Secretary of the Ministry of MSME will hold the position of council chairperson.

Also Read: How to Apply for Pradhan Mantri Mudra loan | How to Register for Atal Incubation Centers?

Benefits of ASPIRE Scheme:

ASPIRE Scheme is beneficial for small businesses in so many respects that are listed below:

Monetary Support: Under the scheme, financial assistance is granted for establishing the TBIs and LBIs. Moreover, entrepreneurs are supported for infrastructure development, technology, equipment, and training-related costs.
Vocational Training: Various training programs are provided for individuals to have the required entrepreneurial skills across all business domains such as marketing, sales, business analytics, organizational skills, and financial management.
Bridging the Gap: This scheme acts as the bridge between businesses and potential markets, lessening the gap between entrepreneurs and related markets and helping them thrive.
Connections: By providing networking opportunities, the scheme intends to connect entrepreneurs with like-minded individuals, thus facilitating knowledge transfer and collaboration.
Employment Generation: Through the scheme, entrepreneurs are enabled to set up their businesses by providing all the required resources, thus producing employment opportunities for them.
Economic Development: By empowering micro, small, and medium enterprises (MSMEs) financially, the scheme contributes to strengthening the GDP of the country.
Living Standards: Equipping small businesses with all the means to develop and grow, the scheme aims to enhance the financial positioning of the rural people, thus enhancing their living standards.
Migration: Through job creation in remote areas, the scheme reduces the scope of migration to urban cities.

Also Read: Mahila Samriddhi Yojana Benefits | Benefits DPIIT Recognition in India

Key Takeaways

Recognizing the importance of the MSME sector for the Indian economy, the government has taken several steps to strengthen it through various initiatives, and the ASPIRE Scheme is one such initiative supporting small businesses in every way, from marketing, business expansion, funding, and technology to training programs. Started mainly to help entrepreneurs begin their businesses, the scope of the scheme has enlarged over time, providing training and funding to upgrade the business. Fostering innovation and entrepreneurship, ASPIRE Scheme MSME focuses on providing individuals with self-employment opportunities, thus contributing to the economic growth of the country.

FAQs

Q.1. What are the objectives of the ASPIRE scheme?

The primary objective of the ASPIRE Scheme is to promote entrepreneurship culture among Individuals by supporting them financially to start the business and develop the entrepreneurship culture at the grassroots level.

Q.2. Who is eligible for the ASPIRE scheme?

Any entrepreneur whose age is more than 18 years old and wants to start a business can apply for the scheme provided his business relates to the sectors mentioned in the ASPIRE scheme.

Q.3. What is the full form of ASPIRE?

The full form of ASPIRE is A Scheme for the Promotion of Innovation, Rural Industries, and Entrepreneurship. It is a government scheme launched to nurture the entrepreneurial potential of individuals and help them set up their businesses by making all required resources easily accessible to them.

Q.4. What are the benefits of the ASPIRE Scheme?

The ASPIRE scheme is useful for young entrepreneurs to establish their businesses and also scale up their businesses by availing of the training programs, networking opportunities, and funding benefits provided under the scheme.

Q.5. Which ministry runs the ASPIRE Scheme?

The ASPIRE scheme is under the Ministry of Micro, Small, and Medium Enterprises (MSME) of the Government of India. cheme is under the Ministry of Micro, Small, and Medium Enterprises (MSME) of the Government of India.

Also Read: Top Software Companies In India | Top Edtech Companies in India | Top FMCG Companies in India | Top Emerging Startup in India

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Startup India

The entrepreneurial scenario in India has changed over the last decade. The Indian government is supporting innovation through its Startup India initiative, creating employment opportunities and accelerating economic growth. In this blog, let's discuss Startup India, including its objectives, benefits, and eligibility criteria; also, know how to get a startup registered under this initiative.

What is Startups ?

A startup is the early stage of a company that is formed to develop a unique product or service, introduce it into the market, and scale it to make substantial revenues. Startups are an important part of innovation, job creation, and diversification in the economy. In India, startups play a critical role in driving technology adoption and solving complex challenges in areas such as healthcare, education, and financial inclusion.

Characteristics of a Startup

Innovation: Key concentration in developing new products, services, or processes.
Scalability: Ability to grow rapidly with low incremental costs.
Disruption: Challenge traditional business models or industries.

Importance of Startups in India

Job Creation: Startups are significant employment generators.
Economic Growth: Contribute to GDP by introducing new industries.
Technological Advancement: Drive innovation and technology adoption.

What is the Startup India Initiative?

Startup India is one of the flagship initiatives of the Government of India, launched on January 16, 2016. It aims to build a robust ecosystem that nurtures innovation and startups across the country. The idea is to give an impetus to economic growth and employment generation in a substantial way. Startup India seeks to encourage entrepreneurship by giving a boost to innovation and design, thus leading to the growth and success of the startup ecosystem.

Standup India Scheme Standup India scheme was announced on April 5, 2016, to finance new enterprises, to boost the entrepreneurship culture in India. The program ensures the availability of loans through the Scheduled Commercial Banks (SCBs), between ₹10 lakh and ₹1 crore to at least one member of the Scheduled Caste (SC) and Scheduled Tribe (ST), and at least one woman, per bank branch. The support in this new scheme is granted to businesses in the trading, services, or manufacturing sectors. This will supposedly help about 250,000 borrowers.

Key Objectives of Startup India

Making Business Easier: Simple rules, compliance, and legal steps.

Financial Help: Provide access to government funds and venture capital.

Building Skills: Offer training and mentorship programs.

Encouraging Innovation: Support research and development with grants.

Features of Startup India

Startup India Hub: This is a place where startups can connect with investors and mentors.

Fund of Funds for Startups (FFS): This is a ₹10,000 crore fund managed by the Small Industries Development Bank of India (SIDBI).

Tax Benefits: Eligible startups can get exemptions from income tax and capital gains tax.

Startup Recognition: Startups can receive official recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).

The Startup India scheme eligibility criteria

If you want to get funding through the Start-up India scheme, you need to meet certain eligibility requirements. Knowing these requirements well will help you successfully go through the application process.

Business Experience: Start-ups applying for this scheme must have been operating for more than five years.
Age Requirement: Applicants must be at least 18 years old.
Company Structure: To get funds under this scheme, the company must be either a partnership or a private limited company.
Turnover Limit: The company should have an annual turnover of no more than Rs. 25 crore.
No Reconstruction: Start-ups that have emerged from the splitting or restructuring of an existing business are not eligible for this scheme. Companies that have divided an organization into two or more parts will be disqualified.

If a company is developing a new product or service, it can benefit from the Start-up India policy.

Here are the requirements:

The start-up must create, utilize, or sell a product or service that is based on new technology or intellectual property.
The focus should be on enhancing an existing product or developing a new one that adds value for customers or improves workflow.
The start-up must not engage in projects that are not unique or do not provide value to customers or enhance workflow.

To get a Startup India loan, start-ups must secure various approvals and submit specific documents:

Obtain approval from the Inter-Ministerial Board under the Department of Industrial Policy and Promotion (DIPP).
Acquire a recommendation from an incubator affiliated with a recognized post-graduate college.
Secure a recommendation from a government-recognized incubator.
File a patent for your product or service and have it published in the Indian Patent Office Journals.
If your services involve funding and equity, register with the Securities and Exchange Board of India (SEBI).
Provide a funding letter from any state or central government scheme that supports innovation.

How to Register Under Startup Under Startup India Scheme?

Step 1: Start Your Business

The first step in starting your business is to choose a legal structure, such as a Private Limited Company, Partnership, or Limited Liability Partnership (LLP). You will need to complete the standard registration process, which involves submitting an application and obtaining a Certificate of Incorporation or Partnership registration.

Step 2: Register with Startup India

Once you have created your business, the next step is to register it as a startup. This process is straightforward and can be completed online. First, visit the Startup India website and click the 'Register' button. Enter your name, email address, and mobile number, then create a password and click 'Register.' You will receive a One-Time Password (OTP) in your email. Enter this OTP and provide additional information, such as your user type, business name, and the stage of your startup. Finally, click 'Submit' to create your Startup India profile. Completing this registration will help your business be recognized as a startup under the Startup India scheme, granting you access to various benefits and support.

Step 3: Obtain DPIIT Recognition

After creating your profile on the Startup India website, the next step is obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition provides benefits such as quality intellectual property services, relaxed public procurement rules, self-certification for labour and environmental laws, simplified winding-up procedures, access to the Fund of Funds, and tax exemptions for three years.

Step 4: Submit the Documents for Registration

To complete the registration process and obtain DPIIT recognition for your startup, please submit the following documents:
1. The incorporation or registration certificate of your startup.
2. Proof of funding, if applicable.
3. An authorization letter from the company's authorized representative
4. Evidence of your concept, such as a website link, pitch deck, or video (this applies to startups at the validation, early traction, or scaling stage).
5. Information regarding any patents and trademarks you hold.
6. A list of any awards or certificates of recognition you have received.
7. Your Permanent Account Number (PAN).

Step 5: Self-Certification of Eligibility Conditions

You need to confirm that your business meets the following conditions:
1. Your business must be a Private Limited Company, Limited Liability Partnership (LLP), or partnership firm.
2. Your business has been registered in India for no more than five years.
3. Your company's turnover does not exceed ₹100 crore.
4. Your company is consistently innovating or improving existing systems.
5. Your business is based on an original idea, rather than a split or reorganization of an existing business.

Step 6: Obtain Your Recognition Number

When applying for registration, you will receive your recognition number immediately. The authority will send you the certificate of registration or incorporation after reviewing your uploaded documents. Ensure that you upload accurate information to avoid errors, as mistakes can lead to fines of up to 50% of your paid-up capital or a minimum of Rs. 25,000. By fulfilling the eligibility and registration requirements, your company can participate in the Startup India scheme and enjoy various benefits provided by the government.

Wrapping Up

The Startup India initiative has revolutionized the entrepreneurial landscape in India by offering financial, regulatory, and infrastructural support. If you’re an entrepreneur with an innovative idea, registering under this program can unlock numerous opportunities for growth and success. Begin your startup journey today and contribute to India’s transformation into a global hub for innovation.