15 Best Government Subsidy For Small Business In India

Government subsidy for small business is very much effective in any small scale industry. Many incentives are provided both by the Central and State Governments to pro­mote the growth of small-scale industries specially MSME. Here is a list of 15 best Government subsidy for small business will help you in getting the subsidy from Government in different sectors.

10 Best Government Subsidy For Small Business

#1. The Credit Guarantee Fund Scheme for Micro and Small Enterprises

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to provide collateral-free credit to Indian MSMEs. Both the existing and the new enterprises are eligible for the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) established a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the scheme.

The scheme provides credit facilities in the form of term loans and working capital facility of up to Rs. 100 lakh per borrowing unit. The amount is contributed by the Government and SIDBI in the ratio of 4:1, respectively. The scheme also offers rehabilitation assistance to sick units covered under the guarantee scheme. To know more about the scheme, Click Here.

#2. Government Subsidy For Small Business – Organic Farming

The Government of India under National Project on Organic Farming provides capital investment subsidy for commercial production units manufacturing organic fertilizers / bio-fertilizers.

NABARD/ NCDC will release the eligible subsidy amount by DAC in advance as per the requirement. You will get 50% advance subsidy to the participating bank for keeping the same in subsidy reserve fund account of the concerned borrower. Read More…

#3. Technology Upgradation Fund Scheme (TUFS) For Textile Industry

Ministry of Textiles introduced the Technology up gradation fund scheme (TUFS) for textiles and jute industry in April 1999 to facilitate induction of state-of-the- art technology by the textile units. It includes the benefits like 5% interest reimbursement of the normal interest charged by the lending agency on RTL, or 5% exchange fluctuation (interest & repayment) from the base rate on FCL, or 15% credit linked capital subsidy for SSI sector, or 20% credit linked capital subsidy for power loom sector, or 5% interest reimbursement plus 10% capital subsidy for specified processing machinery. To know more about the scheme, Click Here.

#4. Scheme for Technology Upgradation/ Establishment/ Modernization for Food Processing Industries

This Scheme covers the following activities: Setting up/expansion/modernization of food processing industries covering all segments viz fruits & vegetable, milk product, meat, poultry, fishery, oil seeds and such other agri-horticultural sectors leading to value addition and shelf life enhancement including food flavours and colours, oleoresins, spices, coconut, mushroom, hops. The assistance is in the form of grant subject to 25% of the plant & machinery and technical civil work subject to a maximum of Rs. 50 lakh in General Areas and 33.33% up to Rs. 75 lakh in Difficult Areas. To know more about the scheme, Click Here.

#5. Integrated Development of Leather Sector – Scheme for Leather Industry

The scheme is aimed at enabling existing tanneries, footwear, footwear components and leather products units to upgrade leading to productivity gains, right-sizing of capacity, cost-cutting, design and development simultaneously encouraging entrepreneurs to diversify and set up new units. Newly eligible units would be approved for assistance under the scheme only on submission of the copy of all the required registration, NOCs from all concerned Government Departments for setting up of the unit and when the factory building is ready for installation of plant and machinery.

#6. Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)

Upgradation of the process as well as the corresponding plant and machinery is important to help SMEs reduce the cost of production and remain price competitive in the global market. To help SMEs flourish in international trade markets, the Ministry of Small Scale Industries (SSI) runs a scheme for technology up gradation of Small Scale Industries. Known as the Credit Linked Capital Subsidy Scheme (CLCSS), it aims at facilitating technology up gradation by providing the upfront capital subsidy of 15% (limited to maximum Rs.15 lakhs) to SSI units for credit availed by them for the modernisation of their plant and machinery. All sole proprietorship, partnership firms, cooperative, private and public limited companies are eligible for this scheme. To know more about the scheme, Click Here.

#7. Market Development Assistance Scheme for Micro, Small & Medium Enterprises

The scheme offers funding for participation by manufacturing Small & Micro Enterprises in International Trade Fairs/ Exhibitions under MSME India stall; sector-specific market studies by Industry Associations/ Export Promotion Councils/ Federation of Indian Export Organisation; initiating/ contesting anti-dumping cases by MSME Associations and reimbursement of 75% of one-time registration fee; and 75% of annual fees (recurring) paid to GSI (Formerly EAN India) by Small & Micro units for the first three years for bar code. To know more about the scheme, Click Here.

#8. Technology & Quality Upgradation Support for MSMEs

In an effort to increase the adoption of quality standards by the MSME sector of India, Government provides this subsidy. Basically, this is for acquiring ISO certifications like ISO 9000, ISO 14001 and HACCP. The initiative under the NMCP aims to increase productivity, upgrading technology and conserving energy in the manufacturing process. Also, it aims to expanding domestic and global market share of Indian MSME products. Read More…

#9. Mini Tools Room and Training Centre Scheme

To assist state, the governments set up Mini Tool Room and Training Centres, the Government of India provides financial assistance in the form of one-time grant-in-aid. The financial aid equals to 90% of the cost of machinery/equipment (maximum to Rs. 9 crore) in case new Mini Tool Room has to be created and 75% of the cost (maximum to Rs. 7.50 crore) in case an existing room has to be upgraded. The main objective of this scheme is to develop more tool room facilities. Basically, the Govt. wants to provide technical support to the MSMEs and training facility in tool manufacturing and tool design to create a workforce of skilled workers, supervisors, engineers/designers, etc. To know more about the scheme, Click Here.

#10. Government Subsidy for Small Business from NSIC

NSIC provides two basic subsidies. Such as raw material assistance and marketing assistance. Raw Material Assistance Scheme aims at helping Small Scale Industries/Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to SSI to focus better on manufacturing quality products. Under the Scheme, marketing support is provided to Micro, Small & Medium Enterprises through National Small Industries Corporation (NSIC) to enhance competitiveness and marketability of their products. To know more about the scheme, Click Here.

Related: 15 Best SBI SME Loan Schemes Every Entrepreneur Must Know

#11. Government Subsidy for Small Business for Cold Chain

The objective of the scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities without any break from the farm gate to the consumer. It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centers. Basically, the centers that include infrastructural facilities like Processing/Multi-line Processing/ Collection Centres, etc. for horticulture, organic produce, marine, dairy, meat, and poultry etc. Individual, Groups of Entrepreneurs, Cooperative Societies, Self Help Groups(SHGs), Farmers Producer Organizations (FPOs), NGOs, Central/State PSUs etc. with a business interest in Cold Chain solutions are eligible to set up an integrated cold chain and preservation infrastructure and avail grant under the Scheme. Read More….

#12. Under Technology Mission on Coconut (TMOC) For Coconut Producing Units

Do you want to start a coconut based business? Do you know there is a Government subsidy scheme for innovative and value-added coconut producing units in India? Under Technology Mission on Coconut (TMOC), Coconut Development Board is providing assistance. Any individual can avail the assistance for setting up of coconut based industry other than the husk. Technology for the different products are available with the board on payment of technology transfer fee. The product list includes virgin coconut oil and dietary fiber, packing of tender coconut water, spray dried milk powder, vinegar, and other convenience foods  Read More…

#13. SAMPADA Scheme for Agro-Marine Produce Processing

SAMPADA stands for Scheme for Agro-Marine Produce Processing and Development of Agro-Processing Clusters. With a budget of Rs. 6000 Crores, the SAMPADA scheme is aimed to integrate current and new schemes in food processing sector. The main objective is reducing food wastage and doubling farmers’ income. Read More…

#14. Government Subsidy for Small Business – Dairy Farming

In an effort to further strengthen dairy farming industry in India, the NABARD dairy farming subsidy was launched.

In addition to milk, the manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gobar gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The surplus fodder and agricultural by-products are gainfully utilized for feeding the animals. Read More…

#15. Government Subsidy for Small Business for Horticulture

National Horticulture Board (NHB) was set up by the Government of India in 1984. Basically, it is an autonomous society under the Societies Registration Act 1860.

The objectives of National Horticulture Board are the development of hi-tech commercial horticulture, development of modern post-harvest management infrastructure, promotion, market development of fresh horticulture produce and more. Read More…

In this article, we have compiled 10 Government subsidy for small business to help the small-scale industry sectors. Identifying the right project and applying the subsidy will definitely boost your small business.