MODULE-IV

ENTREPRENEURSHIP
DEVELOPMENT AND
GOVERNMENT

Ashley D'Souza
Module Outline
 Entrepreneurship Development and Government: Role of Central
Government and State Government in promoting Entrepreneurship
 Introduction to various incentives, subsidies and grants
 Export Oriented Units - Fiscal and Tax concessions available- Start Up
India scheme
 Women Entrepreneurs, Reasons for low women Entrepreneurs, Prospects
for Women Entrepreneurs,
 Strategies to motivate entrepreneurship amongst women
 Institutions supporting Entrepreneurs: A brief overview of financial
institutions in India - SIDBI
 NABARD - IDBI - SIDCO
 Indian Institute of Entrepreneurship - DIC - Single Window
 Latest Industrial Policy of Government of India.
Ashley D'Souza
Introduction
The Government of India has undertaken several
initiatives and instituted policy measures to foster a
culture of innovation and entrepreneurship in the
country. Job creation is a foremost challenge facing
India. With a significant and unique demographic
advantage, India, however, has immense potential to
innovate, raise entrepreneurs and create jobs for the
benefit of the nation and the world.

Ashley D'Souza
Role of Central Government and State
Government in promoting Entrepreneurship
 In the recent years, a wide spectrum of new programmes and opportunities
to nurture innovation have been created by the Government of India across a
number of sectors.
 Engaging with academia, industry, investors, small and big entrepreneurs,
non-governmental organizations to the most underserved sections of
society.
 Recognising the importance of women entrepreneurship and economic
participation in enabling the country’s growth and prosperity, Government of
India has ensured that all policy initiatives are geared towards enabling equal
opportunity for women.
 The government seeks to bring women to the forefront of India’s
entrepreneurial ecosystem by providing access to loans, networks, markets
and trainings. Ashley D'Souza
Introduction to various incentives,
subsidies and grants
 Central and State Governments offer various incentives, subsidies,
and grants to support entrepreneurship in the country
 Some of the incentives and schemes offered by the Government
include:
 Startup India
 Make in India
 Credit Guarantee Fund Scheme for Micro and Small Enterprises
 Pradhan Mantri Mudra Yojana
 Stand-Up India Scheme
 National Small Industries Corporation Subsidy
 Technology Upgradation Fund Scheme (TUFS)
 National Equity Fund SchemeAshley D'Souza
Startup India
Launched on 16th January, 2016, the Startup India Initiative has rolled
out several programs with the objective of supporting entrepreneurs,
building a robust startup ecosystem and transforming India into a
country of job creators instead of job seekers. These programs are
managed by a dedicated Startup India Team, which reports to the
Department for Industrial Policy and Promotion (DPIIT).

startup_kit (2).pdf

Ashley D'Souza
Key Pillars of Support for Startups

Ashley D'Souza
Features of the Startup India 1/2
 Aims to create a conducive ecosystem for startups, including policy
reforms, ease of doing business, funding support, and mentorship.
 Offers various benefits and incentives to startups, such as tax exemptions,
funding opportunities, and intellectual property protection.
 Provides a single-window clearance system for startups to easily register
and avail government schemes and benefits.
 Facilitates access to funding through various channels, including Startup
India Seed Fund, Venture Capital Funds, and credit guarantee schemes.
 Offers mentorship, networking opportunities, and incubation support
through Startup India Hub, a virtual platform connecting startups with
industry experts, mentors, and investors.
Ashley D'Souza
Features of the Startup India 2/2
 Promotes innovation and research and development (R&D) through
initiatives such as Atal Innovation Mission and setting up of incubators and
research parks.
 Emphasizes inclusion and diversity by promoting women entrepreneurs,
rural startups, and social impact startups through specific schemes and
incentives.
 Provides support for intellectual property rights (IPR) registration,
awareness, and legal assistance to protect the innovation and creativity of
startups.
 Collaborates with state governments, industry bodies, and international
partners to create a vibrant startup ecosystem across the country.
 Aims to foster job creation, economic growth, and global competitiveness by
nurturing a culture of entrepreneurship
Ashley D'Souzaand innovation in India.
Startup India

Ashley D'Souza
Make In India 1/3
 Launched by the Government of India in September 2014 as a flagship
program to promote manufacturing and boost economic growth in the
country.
 Aims to transform India into a global manufacturing hub and create
employment opportunities.
 Focuses on 25 key sectors, including automobiles, textiles, aerospace,
defense, electronics, and renewable energy, among others.
 Encourages both domestic and foreign investment in the manufacturing
sector through policy reforms, ease of doing business, and financial
incentives.
 Facilitates a conducive business environment by simplifying regulatory
processes, reducing bureaucratic hurdles, and promoting transparency.
Ashley D'Souza
Make In India 2/3
 Promotes innovation, research and development (R&D), and technology
adoption to enhance the competitiveness of Indian manufacturing.
 Emphasizes sustainable manufacturing practices and environmental protection
to promote responsible industrial growth.
 Offers financial incentives, tax benefits, and subsidies to attract investments
and promote manufacturing in India.
 Facilitates skill development, vocational training, and human resource
development to enhance the employability of the workforce in the
manufacturing sector.
 Collaborates with states, industry bodies, and international partners to create
industrial clusters, special economic zones (SEZs), and investment corridors to
drive manufacturing growth.
Ashley D'Souza
Make In India 3/3
 Aims to increase the share of manufacturing in India's GDP, promote
exports, and reduce dependency on imports by promoting domestic
production.
 Promotes the branding of "Make in India" to showcase Indian products
and services globally and attract foreign investment and business
opportunities.

Ashley D'Souza
Pradhan Mantri Mudra Yojana (PMMY) 1/3
 Launched by the Government of India in April 2015 to provide financial
support to micro and small enterprises (MSEs) in the form of loans.
 Aims to promote entrepreneurship, generate employment, and facilitate
financial inclusion for MSEs in India.
 Offers three types of loans: Shishu (up to INR 50,000), Kishore (from INR
50,001 to INR 5,00,000), and Tarun (from INR 5,00,001 to INR 10,00,000)
to cater to different funding needs of MSEs.
 Provides loans without any collateral or security requirement, making it
accessible to small businesses with limited assets.
 Facilitates loans through eligible banks, non-banking financial companies
(NBFCs), microfinance institutions (MFIs), and other financial
intermediaries. Ashley D'Souza
Pradhan Mantri Mudra Yojana (PMMY) 2/3
 Supports various types of business activities, including
manufacturing, trading, services, and agriculture and allied
activities.
 Offers competitive interest rates and flexible repayment terms to
suit the repayment capacity of MSEs.
 Simplifies loan application and processing procedures, making it
easier for MSEs to avail credit.
 Provides financial literacy and training programs to borrowers to
enhance their financial management skills and business acumen.

Ashley D'Souza
Pradhan Mantri Mudra Yojana (PMMY) 3/3
 Promotes priority lending to women entrepreneurs, Scheduled
Castes (SCs), Scheduled Tribes (STs), and other marginalized
sections of society to promote inclusive growth.
 Aims to create a robust credit ecosystem for MSEs and foster their
growth, competitiveness, and sustainability.
 Monitored and implemented by the Micro Units Development and
Refinance Agency (MUDRA), a subsidiary of the Small Industries
Development Bank of India (SIDBI), in coordination with partner
financial institutions.

Ashley D'Souza
Start Up India scheme
 Start Up India is an initiative launched by the Government of India
to promote entrepreneurship and create a conducive ecosystem for
start-ups in the country
 The scheme offers several benefits to start-ups, including:
 Tax exemption for the first three years
 Self-certification compliance under labor and environmental laws
 Easy exit options
 Funding and incubation support
 Patent protection

Ashley D'Souza
Stand Up India 1/3
 Launched by the Government of India in April 2016 to promote
entrepreneurship among women, Scheduled Castes (SCs), and Scheduled
Tribes (STs) by providing loans for setting up greenfield enterprises.
 Aims to facilitate financial inclusion, generate employment opportunities,
and promote economic empowerment of marginalized sections of society.
 Provides loans ranging from INR 10 lakh to INR 1 crore to eligible
borrowers to start new ventures in manufacturing, services, or trading
sectors.
 Requires at least one woman entrepreneur and one entrepreneur from
SC/ST category per bank branch for availing the loan under the scheme.

Ashley D'Souza
Stand Up India 2/3
 Facilitates loans through scheduled commercial banks, regional rural banks
(RRBs), and small finance banks (SFBs).
 Offers competitive interest rates and flexible repayment terms, with a
maximum repayment period of 7 years for term loans and 5 years for working
capital loans.
 Provides composite loans, including term loans for buying machinery,
equipment, and vehicles, and working capital loans for day-to-day operations.
 Supports business activities in a wide range of sectors, including
manufacturing, services, and trading, as well as agriculture and allied
activities.
 Requires minimal collateral or security, with a 25% margin money
requirement for loans above INR 10 lakh.
Ashley D'Souza
Stand Up India 3/3
 Promotes skill development and capacity building among borrowers
through training and mentoring programs to enhance their
entrepreneurial capabilities.
 Facilitates handholding and support by banks throughout the lifecycle
of the project, from loan application to project implementation and
beyond.
 Monitored and implemented by the Small Industries Development
Bank of India (SIDBI) in coordination with partner banks.
 Aims to create a conducive ecosystem for entrepreneurship and self-
employment among women, SCs, and STs, and promote their socio-
economic upliftment.
Ashley D'Souza
Credit Guarantee Fund Scheme for Micro
and Small Enterprises (CGTMSE) 1/3
 Launched by the Government of India in August 2000 to provide collateral-
free credit facilities to micro and small enterprises (MSEs) in India.
 Aims to facilitate easy access to credit for MSEs, particularly those without
adequate collateral or credit history.
 Provides credit guarantee coverage of up to 85% for loans extended to
MSEs by eligible banks and financial institutions.
 Covers both term loans and working capital loans, including composite
loans, for MSEs in the manufacturing and services sectors.
 Supports MSEs with a maximum project cost of up to INR 10 crores (for
manufacturing) and up to INR 5 crores (for services).

Ashley D'Souza
Credit Guarantee Fund Scheme for Micro
and Small Enterprises (CGTMSE) 2/3
 Facilitates loans for a wide range of purposes, including setting up new
units, expansion, modernization, diversification, and technology
upgradation.
 Covers both new and existing MSEs, including those in rural and urban
areas, engaged in manufacturing or services activities.
 Requires minimal collateral or third-party guarantee from MSEs, making it
easier for them to avail credit.
 Provides coverage for the entire tenure of the loan, including moratorium
period and term loan repayment period, up to a maximum of 5 years.
 Supports eligible lending institutions, including scheduled commercial
banks, regional rural banks (RRBs), and select financial institutions.
Ashley D'Souza
Credit Guarantee Fund Scheme for Micro
and Small Enterprises (CGTMSE) 3/3
 Charges a one-time guarantee fee and annual service fee from the lending
institutions for availing the credit guarantee coverage.
 Monitored and implemented by the Credit Guarantee Fund Trust for Micro
and Small Enterprises (CGTMSE), a trust set up by the Government of India
in association with the Small Industries Development Bank of India
(SIDBI).
 Aims to enhance the credit flow to MSEs, reduce the risk perception of
lenders, and promote the growth and development of the MSE sector in
India.

Ashley D'Souza
National Equity Fund Scheme 1/3
 NEF is a scheme launched by the Government of India to provide
equity support to micro and small enterprises (MSEs) in India.
 Aims to enhance the equity base of MSEs, facilitate their growth,
and improve their competitiveness.
 Provides equity assistance in the form of soft loans or quasi-equity,
which is repayable over a period of time.
 Supports MSEs in the manufacturing, services, and trade sectors,
including rural and urban areas.
 Assists MSEs in the form of equity infusion to meet their long-term
working capital requirements, purchase of fixed assets, and
technology upgradation.
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National Equity Fund Scheme 2/3
 NEF equity support is available for MSEs with a maximum project cost of
up to INR 1 crore.
 NEF assistance is limited to a maximum of 90% of the project cost or INR
75 lakh, whichever is lower.
 Requires the MSEs to bring in a minimum of 10% of the project cost as
their contribution.
 NEF assistance is provided at concessional interest rates and repayment
terms, with a moratorium period and a repayment period of up to 7 years.
 MSEs are required to provide adequate collateral security for the NEF
assistance, as per the guidelines of the scheme.
 Eligible MSEs need to submit their business proposals to the designated
bank or financial institution for availing
Ashley D'SouzaNEF assistance.
National Equity Fund Scheme 3/3
 NEF assistance is available through designated banks, financial
institutions, and state-level agencies identified by the Ministry of Micro,
Small and Medium Enterprises (MSMEs).
 NEF aims to enhance the equity base of MSEs, enable them to access long-
term funds, and support their growth and competitiveness in the market.
 MSEs availing NEF assistance are required to comply with certain
conditions, such as timely repayment of the loan, maintenance of financial
and operational discipline, and adherence to quality standards.
 NEF is administered and implemented by the Small Industries
Development Bank of India (SIDBI) on behalf of the Government of India.

Ashley D'Souza
Technology Upgradation Fund Scheme (TUFS)
1/3
 TUFS is a scheme launched by the Government of India to facilitate
technology upgradation and modernization of the textile and jute
industries in India.
 Aims to enhance the competitiveness of the textile and jute industries,
improve product quality, productivity, and cost competitiveness.
 Provides financial support in the form of interest reimbursement and
capital subsidy to eligible textile and jute units.
 Covers various segments of the textile and jute industries, including
spinning, weaving, knitting, processing, garmenting, technical textiles, and
jute diversified products.
 Supports both new and existing units for technology upgradation and
modernization. Ashley D'Souza
Technology Upgradation Fund Scheme (TUFS)
2/3
 Offers interest reimbursement on loans taken for modernization,
expansion, and setting up of new textile and jute machinery, up to a
specified percentage of the interest paid.
 Provides capital subsidy on the eligible project cost, which includes
machinery, equipment, civil works, and other specified expenses.
 Capital subsidy rates vary depending on the category of the unit (i.e., small,
medium, or large), location of the unit, and type of machinery being
installed.
 Requires the textile and jute units to comply with certain quality and
environmental standards as specified by the scheme.
 TUFS assistance is available for units availing loans from scheduled banks,
cooperative banks, and financial institutions recognized by the Reserve
Bank of India. Ashley D'Souza
Technology Upgradation Fund Scheme (TUFS)
3/3
 Units availing TUFS assistance are required to contribute a minimum of 15%
of the project cost as their own contribution.
 TUFS assistance is provided through designated nodal agencies, such as the
Ministry of Textiles, Textile Commissioner's Office, and state-level agencies.
 Eligible textile and jute units need to submit their project proposals to the
designated nodal agencies for availing TUFS assistance.
 TUFS aims to promote technology upgradation, enhance competitiveness,
and foster sustainable growth in the textile and jute industries in India.
 Units availing TUFS assistance are required to comply with certain
conditions, such as timely repayment of the loan, proper utilization of funds,
and adherence to quality and environmental standards.
 TUFS is administered and implemented by the Ministry of Textiles,
Government of India.
Ashley D'Souza
Export Oriented Units
 Export Oriented Units (EOUs) are business units that manufacture
goods or provide services primarily for export
 The Central Government provides several incentives and
concessions to EOUs to encourage them to export more and
contribute to the country's foreign exchange earnings
 Some of the incentives and concessions offered to EOUs include:
 Duty-free import of capital goods, raw materials, and components
 Exemption from payment of excise duty and central sales tax
 Exemption from payment of service tax

Ashley D'Souza
Fiscal and Tax concessions available
 The Central and State Governments provide various fiscal and tax
concessions to promote entrepreneurship in the country
 Some of the fiscal and tax concessions available to entrepreneurs
include:
 Income Tax Exemptions
 Capital Gains Tax Exemptions
 Tax Holidays
 Reduced Tax Rates
 GST Exemptions

List Of Tax Benefits For Startups In India (vakilsearch.com)

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Fiscal and Tax concessions available
1/2
 Income Tax Exemption: Startups recognized by the Department for
Promotion of Industry and Internal Trade (DPIIT) are eligible for income
tax exemption for a period of 3 consecutive years out of the first 10 years
since incorporation, subject to certain conditions.
 Capital Gains Tax Exemption: Startups are eligible for exemption from
long-term capital gains tax on the sale of specified assets, such as
residential property or shares of eligible startups, if the proceeds are
invested in the equity of eligible startups, subject to certain conditions.
 Tax Exemption for Investments: Investors in eligible startups can claim tax
exemption on their investments under Section 54GB of the Income Tax Act,
which allows for rollover of capital gains to eligible startups, subject to
certain conditions.
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Fiscal and Tax concessions available
1/2
 Carry Forward and Set Off of Losses: Startups are allowed to carry forward
and set off losses for a period of up to 7 years, as opposed to the regular
limit of 8 years, subject to certain conditions.
 Exemption from Angel Tax: Startups recognized by DPIIT are exempted
from the angel tax provisions, which require valuation of shares issued to
domestic investors at fair market value, subject to certain conditions.
 Intellectual Property (IP) Protection: Startups are eligible for reduced fees
and expedited processing of IP applications, such as patents and
trademarks, to encourage and support innovation.
 Custom Duty Exemption: Startups importing goods for research and
development purposes are eligible for exemption from custom duty,
subject to certain conditions.
Ashley D'Souza
 Women Entrepreneurs-Introduction
 Women Entrepreneurs may be defined as the women or a group
of women who initiate, organize and operate a business enterprise.
 Government of India has defined women entrepreneurs as an
enterprise owned and controlled by a women having a minimum
financial interest of 1% of the capital and giving at least 51% of employment
generated in the enterprise to women.

WomenEntrepreneurIndia : Famous Women Entrepreneurs Share Their

Secrets To Success
Ashley D'Souza
Reasons for low women entrepreneurs
 Social and cultural barriers
 Lack of access to education and resources
 Gender bias and discrimination
 Family responsibilities
 Problem of finance
 Lack of education
 Male dominated society
 Family ties
 Limited mobility
Ashley D'Souza
Prospects for women entrepreneurs
1/2
 Consider women as specific target group for all
developmental programmes.
 Better educational facilities and schemes should be extended
to women folk from government part.
 Adequate training programmes on management skills to be
provided to women community.
 Encourage women’s participation in decision-making.
 Vocational training to be extended to women community that
enables them to understand the production process and production
management.
Ashley D'Souza
Prospects for women entrepreneurs
2/2
 Skill development to be done in women’s polytechnics and
industrial training institutes. Skills are put to work in training-cum-
production workshops.
 Training on professional competence and leadership skill to be
extended to women entrepreneurs.
 Training and counselling on a large scale of
existing women entrepreneurs to remove psychological causes like
lack of self-confidence and fear of success.
 Counselling through the aid of committed NGOs, psychologists,
managerial experts and technical personnel should be provided
to existing and emerging women entrepreneurs.
Ashley D'Souza
Strategies to motivate
entrepreneurship amongst women
 Providing access to education and resources
 Addressing gender bias and discrimination
 Encouraging female role models and mentorship
 Creating support networks and communities
 Social Empowerment
 Increased Representation
 Flexibility and Work-Life Integration

Ashley D'Souza
Institutions Supporting Entrepreneurs
in India
 Small Industries Development Bank of India (SIDBI)
 National Bank for Agriculture and Rural Development
(NABARD)
 Industrial Development Bank of India (IDBI)
 State Industrial Development Corporation (SIDCO)

Ashley D'Souza
Small Industries Development Bank of
India (SIDBI)
Small Industries Development
Bank of India (SIDBI) set up on
2nd April 1990 under an Act of
Indian Parliament, acts as the
Principal Financial Institution for
Promotion, Financing and
Development of the Micro, Small
and Medium Enterprise (MSME)
sector as well as for co-ordination
of functions of institutions
engaged in similar activities

Home - Small Industries Development Bank of India (sidbi.in)

Ashley D'Souza
SIDBI – Features 1/2
 SIDBI's main objective is to promote, finance, and develop small-
scale industries (SSIs) in India to support entrepreneurship and
economic growth.
 SIDBI provides various financial products and services, including
term loans, working capital loans, equipment finance, and project
finance, to SSIs across different sectors.
 SIDBI also offers specialized financial assistance programs for
women entrepreneurs, micro, small, and medium enterprises
(MSMEs) in rural and urban areas, and startups.
 SIDBI collaborates with various stakeholders, such as banks, non-
banking financial companies (NBFCs), and state governments, to
facilitate credit flow to SSIs and promote
Ashley D'Souza entrepreneurship.
SIDBI – Features 2/2
 SIDBI supports capacity building, skill development, and technology
upgradation initiatives for MSMEs through its various programs and
schemes.
 SIDBI also provides refinancing support to banks and financial institutions
for their lending to MSMEs.
 SIDBI has a wide network of branches, regional offices, and affiliated
institutions across India to cater to the needs of MSMEs in different regions.
 SIDBI promotes sustainable and inclusive development by supporting
environmentally friendly and socially responsible MSME projects.
 SIDBI plays a crucial role in fostering MSME growth, employment
generation, and overall economic development in India.
Ashley D'Souza
National Bank for Agriculture and
Rural Development
NABARD came into existence on 12 July 1982
by transferring the agricultural credit functions
of RBI and refinance functions of the then
Agricultural Refinance and Development
Corporation (ARDC). It was dedicated to the
service of the nation by the late Prime Minister
Smt. Indira Gandhi on 05 November 1982. Set
up with an initial capital of Rs.100 crore, its’
paid up capital stood at Rs.17,080 crore as on
31 March 2022. Consequent to the revision in
the composition of share capital between
Government of India and RBI, NABARD today is
fully owned by Government of India.

NABARD - National Bank For Agriculture

Ashley D'Souza
And Rural Development
NABARD in promoting entrepreneurship
 Credit facilitation
 Capacity building and training
 Technology adoption
 Promoting rural non-farm enterprises
 Microfinance and SHG promotion
 Entrepreneurship development programs

Ashley D'Souza
IDBI
 IDBI (Industrial Development Bank of India) is a government-
owned financial institution in India that was established in 1964 as
a wholly-owned subsidiary of the Reserve Bank of India (RBI). It
was initially set up to provide financial assistance and support to
the industrial development in the country. Over the years, IDBI has
evolved into a full-service commercial bank with a wide range of
financial products and services catering to various sectors and
segments of the economy.
 IDBI also supports entrepreneurship through its venture capital
arm, IDBI Venture Capital Fund Ltd., which provides equity
financing, seed funding, and risk capital investments to startups
and early-stage businesses in innovative and high-growth sectors.
Ashley D'Souza
 IDBI Support to Entrepreneurship

Financing support

Venture capital funding

Mentoring and handholding support

Support for MSMEs

Industry-specific initiatives
Personal & Corporate Banking | MSME
Ashley& Agri banking - IDBI Bank
D'Souza
SIDCO
SIDCO stands for Small Industries Development Corporation. It is a
government agency or corporation that is responsible for the
promotion and development of small-scale industries in a specific
region or state. SIDCOs are typically set up by state governments in
India and other countries to facilitate the growth and development
of small and medium enterprises (SMEs) in their respective
regions.

Ashley D'Souza
SIDCO Functions
 Promotion of SMEs
 Facilitation of industrial estates/parks
 Financial assistance
 Technical and marketing support
 Entrepreneurial development
 Coordination and collaboration
 Policy advocacy and representation

Ashley D'Souza
 Indian Institute of Entrepreneurship
 Indian Institute of Entrepreneurship (IIE) is an autonomous organization under
the Ministry of Skill Development & Entrepreneurship.
 The main aim of the Institute is to provide training, research and consultancy
activities in Small and Micro Enterprises (SME),with special focus on
entrepreneurship development.
 The Indian Institute of Entrepreneurship (IIE) registered under the Societies
Registration Act,1860 was established in the year 1993 in Guwahati by the
erstwhile Ministry of Industry (now the Ministry of Micro, Small and Medium
Enterprises), Government of India.
 The Institute began operating from April 1994 with the North East Council
(NEC), Governments of Assam, Arunachal Pradesh and Nagaland and SIDBI as its
other stakeholders.
 IIE has been transferred to the Ministry of Skill Development &
Entrepreneurship on 22nd May’2015.
Ashley D'Souza
 About Us (iie.gov.in)
OBJECTIVES IIE
1. To promote and develop entrepreneurship.
2. To conduct research and provide consultancy for entrepreneurship
development.
3.To coordinate and collaborate with other organizations in
undertaking training, research and other activities to increase
outreach of the institute.
4.To provide consultancy and monitoring service to MSMEs/
potential entrepreneurs and enhancing employability of
participants.
5. To promote greater use of information technology in the activities/
functions of the IIE.
6. To comply with statutory responsibility.
Ashley D'Souza
Functions of IIE
 Designing and organising training activities for different target
group and undertaking research in the relevant to
entrepreneurship.
 Improving the efficiency, effectiveness and delivery of the change
agents and development practitioners i.e. trainers, support
organizations engaged in enterprise building. etc.
 Provide consultancy service to the prospective and existing
entrepreneurs.
 Increasing the outreach of activities of the institute through
collaborative activities and increasing their effectiveness through
use of different tools of information technology.
Ashley D'Souza
District Industries Center (DIC)
DIC was started by the central government in 1978 with
the objective of providing a focal point for
promoting small, tiny, cottage and village industries in
a particular area and to make available to them all
necessary services and facilities at one place. The finances for
setting up DICs in a state are contributed equally by
the particular state government and the central government. To
facilitate the process of small enterprise development,
DICs have been entrusted with most of the administrative and
financial powers. For purpose of allotment
of land, work sheds, raw materials etc., DICs functions under the
‘Directorate of Industries’.
Ashley D'Souza
Activities of District Industries Centre (DIC)
 Economic Investigation
 Plant and Machinery
 Research, education and training
 Raw materials
 Credit facilities
 Marketing assistance
 Cottage industries

Ashley D'Souza
Objectives of District Industries Centre
 Accelerate the overall efforts for industrialisation of the district.
 Rural industrialisation and development of rural industries and
handicrafts.
 Attainment of economic equality in various regions of the district.
 Providing the benefit of the government schemes to
the new entrepreneurs.
 Centralisation of procedures required to start a new industrial unit and
minimisation- of the efforts and time required to
obtain various permissions, licenses, registrations, subsidies etc.

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Functions of District Industries Centre 1/3
 Acts as the focal point of the industrialisation of the district.
 Prepares the industrial profile of the district with respect to
Statistics and information about existing industrial units in the
district in the large, Medium, small as well as co-operative sectors.
 Opportunity guidance to entrepreneurs.
 Compilation of information about local sources
of raw materials and their availability.
 Manpower assessment with respect to skilled, semi-skilled
workers.

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Functions of District Industries Centre 2/3
 Assessment of availability of infrastructure facilities
like quality testing, research and development, transport, prototype
development, warehouse etc.
 Organises entrepreneurship development training programs.
 Provides information about various government schemes,
subsidies, grants and assistance available from
the other corporations set up for promotion of industries.
 Gives SSI registration.
 Prepares techno-economic feasibility report.
 Advices the entrepreneurs on investments.
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Functions of District Industries Centre 3/3
 Acts as a link between the entrepreneurs and the lead bank of the district.
 Implements government sponsored schemes
for educated unemployed people like PMRY scheme, Jawahar Rojgar
Yojana, etc.
 Helps entrepreneurs in obtaining licenses from
the Electricity Board, Water Supply Board, No Objection Certificates etc.
 Assist the entrepreneur to procure imported machinery and raw materials.
 Organises marketing outlets in liaison with other government agencies.

Ashley D'Souza
Single Window System
Single Window system, which is a simplified and streamlined
process for entrepreneurs and businesses to obtain various
licenses, approvals, and clearances required for setting up and
operating industries at the district level in India.
One-stop Solution: The District Industries Centre (DIC) Single
Window system aims to provide a one-stop solution for
entrepreneurs and businesses to obtain all the necessary approvals,
licenses, and clearances required for setting up and operating
industries at the district level. It eliminates the need for
entrepreneurs to approach multiple government departments and
agencies separately, thus reducing bureaucratic red tape and
simplifying the process.
Ashley D'Souza
Industrial Policy
 Industrial policy is a statement which defines the role of
government in industrial development. The place of the
public and private sectors in industrialization of the country.
The relative role of large and small industries.
 It lays down rules and procedures that would govern the
growth and pattern of industrial activity. The industrial
policy is neither fixed nor inflexible. It is amended, modified
and redrafted according to the changed situations,
requirements and perspectives of developments.

Ashley D'Souza
New Industrial Policy 1991
 The industrial policy is a series of standards and measures implemented by the
government to track the development of industries and related sectors to
promote India’s economic growth and development.
 The New Industrial Policy, of 1991 had the main objective of providing facilities
to market forces and increasing efficiency.
 The government undertook it to take measures to improve the competitiveness
and capabilities of various industries.
 The government undertook various measures to boost the growth of
industries such as it allowed domestic firms to import better technology to
improve efficiency and to have access to better technology.
 The Foreign Direct Investment ceiling was increased from 40% to 51% in
specific sectors.

Ashley D'Souza
Objectives of New Industrial Policy 1991

 The primary objectives of the New Industrial Policy of 1991 were

to promote efficiency and provide facilities for market forces.
 The bigger roles were played by
 L – Liberalization (Reduction in Government Control.)
 P – Privatization (Increasing the Private Sector's Role & Scope.)
 G – Globalisation (Economic Integration between India and the rest of
the world)

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Features of New Industrial Policy 1991
1/3
 Reduction in Government’s Monopoly: Government monopoly was
reduced by decreasing the number of industries reserved for the public
sector from 17 (as per 1956 policy) to 8 industries such as arms and
ammunition, atomic energy, coal, mineral oil, mining of iron ore,
manganese ore, gold, silver, mining of copper, lead, etc.
 Abolition of Industrial Licensing: The Industrial Licensing Policy
abolished the industrial licensing given to all industries except for the
18 industries, which was further reduced to 6 industries in 1999.
These included drugs and pharmaceuticals, hazardous chemicals,
explosives such as gunpowder and detonating fuses, etc.
 Provision of Foreign Companies as a Major Stake: It allowed foreign
companies to have a majority stake in India. For example, in 47 high-
priority industries, up to 51% of FDI was allowed.

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Features of New Industrial Policy 1991
2/3
 Provision to Non-Residential Indians (NRIs): Non-Resident Indians
(NRIs) were allowed 100% equity investments on a non-repatriation
basis in all activities except the negative list.
 Internal Agreements on Foreign Technologies: Various
international agreements were made about foreign technologies. For
example, permitting high-priority industries up to a lump sum
payment of Rs. 1 crore, with 5% royalty for domestic sales and 8% for
exports.
 Restructuring of Portfolio Public Sector Investments: Restructuring
the portfolio of public sector investments, for example, the PSUs which
were unlikely to be turned around were to be referred to the Board for
Industrial and Financial Reconstruction (BIFR).

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Features of New Industrial Policy 1991
3/3
 Removal of Prior Approval from Central Government: To
remove the requirement of prior approval of the Central
Government for the establishment of new undertakings, expansion
of undertakings, merger, amalgamation, etc MRTP act was to be
amended.
 Changes in the Standard for Small Units: The criteria for a tiny
unit was changed to a unit having an investment limit of Less than
Rs. 5 Lakh.
 Establishment of National Renewal Fund: As per this policy, the
government announced the establishment of a National Renewal
Fund (NRF) to ensure a social safety net for labor.

Ashley D'Souza
Impact of New Industrial Policy 1991
 Removal of Restrictions Regarding License, Permit, And Quota Raj: It removed the
restrictions experienced during the license, permit, and quota raj. It intended to liberalize
the economy by removing bureaucratic restrictions on industrial growth.
 Public Sector’s Role And Disinvestment: The role of the public sector was decreased
and two sectors were reserved for the public. The process of disinvestment was started in
PSUs.
 Entry of Multi-National Companies: By removing restrictions it enabled the entry of
multinational companies, privatization, removal of asset limits on MRTP companies,
liberal licensing policy, etc.
 Increment in Domestic And Foreign Investment: Domestic, as well as foreign
investment, increased in almost every sector of the economy.
 Increment in Exports And Related Activities: Increased efforts were undertaken to
increase exports such as Export Oriented Units (EOU), Export Processing Zones (EPZ),
Agri-Export Zones (AEZ), etc emerged.
 Establishment of A Separate Ministry: To better resolve the issues of MSMEs in 2006 a
new act and separate ministry were established.
Ashley D'Souza
Conclusion
 The Central and State Governments play a critical role in promoting
entrepreneurship in the country
 Through various incentives, subsidies, and schemes, the
Government provides a conducive ecosystem for entrepreneurs to
start and grow their ventures
 The Start Up India scheme is a game-changer for start-ups, and it
has helped create a significant impact in the Indian start-up
ecosystem.

Ashley D'Souza
References
 Entrepreneurship- A South-Asian Perspective, D.F.Kuratko, T.V.Rao – Cengage
Learning
 Entrepreneurship Development-Small Business Enterprise- Poornima Charantimath
Pearson Education
 Entrepreneurship- Rober D Hisrich - Michael P Peters - Dean A Shepherd - 6/e - The
McGraw-Hill companies .
 Bobbink, W. (2020, September 15). Thirteen sources of finance for entrepreneurs:
make sure you pick the right one! EY - Netherlands.
https://www.ey.com/en_nl/finance-navigator/12-sources-of-finance-for-
entrepreneurs-make-sure-you-pick-the-right-one
 https://www.startupindia.gov.in
 NSIC : National Small Industries Corporation
 Stand - Up India: (standupmitra.in)
 Make In India
 National Equity Fund Scheme | Women Entrepreneurs ACT (weact.in)

Ashley D'Souza