INDIAN GOVERNMENT SCHEMES FOR INDUSTRIAL GROWTH

Analysis of the Indian Government Schemes that promote business ventures

INTRODUCTION

Seamless opening of bank accounts: Opening a bank account with traditional banks, even in the modern era, is an excruciating process. Neo banks have
The Indian Government focused on making industry the prime moving force of our
completely eliminated the need to go to a physical branch and undergo complex processes ensuing heavy paperwork. It’s just a matter of clicks and a bank
account is opened making the process joyful.
Growing entrepreneurial
country soon after independence. activity in India

Instant Customer Support: Although traditional banks bring in the trust factor, they fail to enforce timely resolution of customer grievances. Neo banks
are making a real dent on this front by taking customer support to another level. Users can directly connect to agents and communicate on the app itself
However, it wasn't until 1991 that the government fully appreciated the role of
through the chat box to resolve their problems. 
private entrepreneurship in the economy's development.

Today, India is the third largest startup ecosystem in the world according to the
End-to-end analysis: It is so easy to lose sight of your financial goals when you don’t keep track of where your money is going and how it is being used.
Neo banks have made it super simple for users to analyze their spending behavior by effectively categorizing the expenditures. These banks also help you
Economic Survey 2021-22. Nearly 167 thousand companies have been registered
in tracking other bank accounts.

in India in FY 22.

Efficacious Digital Tools: Neo banks provide their customers with powerful, yet simple digital tools that help the users to get ahead in personal finance.
This report examines the role of government schemes in India's business boom and
These fintech startups are very strong on the technological part which no traditional behemoth can cope up with.

the benefits and shortcomings of these schemes. Source: Mint

Introduction Market Composition The Road Ahead

SCHEMES FOR MSME SECTOR

MSME stands for Micro, Small, and Medium Enterprise. The classification of enterprises into MSMEs is based on the investment in plant
and machinery or equipment, and annual turnover. India is home to 63.4 million MSME units, which contribute roughly 30% to the GDP.

Financial Benefits Ease of Doing Business Few municipalSupport

Marketing corporations
The Ministry of Social Justice

Skill-Development The COVID

MinistryRelief
of Women and

in Maharashtra

including
and Empowerment

has
Child Development has

Prime Minister Employment The government has Pune Corporation

Procurement had

and Market devised a ‘beggar-free’

Entrepreneurship and Skill launchedCredit
Emergency a centrally

Line
Generation Programme eliminated the minimum launched
Support ‘beggar
Scheme free city’
Development
organises plan for India’ leading

Programme sponsored
Guarantee Integrated
Scheme Child

(ECLGS)
provides margin money capital requirement and the campaign
trade fairs,by working in
exhibitions the
(ESDP)metropolitans
and scheme organises by
Protection
was launched Scheme
duringwith
the the

subsidy up to 35% on bank need for a certificate to areas of affordable

awareness campaigns rehabilitation,

awareness a ‘sustainable

campaigns in aim to protect

pandemic and educate

to extend
loans for establishing new start a business housing,
related education and skill
educational
to e-marketing settlement’ of persons

institutions to children
emergency forced
loans into

to MSMEs
ventures
redevelopment.

promote engaged in begging.
self-employment begging.

The Indian Customs The Government e-
Subordinate Debt worth
Credit Guarantee Scheme Electronic Gateway Marketplace (GeM) portal ATI (Assistance to Training 20,000 Crores extended
for Micro and Small (ICEGATE) portal has been has been launched to Institution) scheme gives under Credit Guarantee
Enterprises gives collateral- launched which digitalises ensure transparent financial assistance to Scheme for Subordinate
free guarantee up to 75% on the process of importing government procurement government-led business Debt
loans up to 2 crores and exporting of goods and services training institutions

THE GROUND REALITY

95% 85% 51% 22,000

MSMEs are not legally MSMEs are based in SUCCESSES MSMEs are based in MSME owners benefitted
recognised as MSMEs only 10 Indian states rural areas today from the Prime Minister
under the current and union territories Employment Generation
definition Programme

1 out of 3 9% 5618 79
MSMEs report huge
costs and cumbersome
MSMEs got shut down
due to COVID-19
FAILURES delayed payment cases
resolved by MSME
spaces jumped by India's
ease of doing business
processes as the main SAMADHAAN portal ranking in the past
deterrents to bank loans
RECOMMENDATIONS

Seamless opening of bank accounts: Opening a bank account with traditional banks, even in the modern era, is an excruciating process. Neo banks have
Amending the legal definition of MSMEs to ensure that more and more enterprises are
completely eliminated the need to go to a physical branch and undergo complex processes ensuing heavy paperwork. It’s just a matter of clicks and a bank
account is opened making the process joyful.
covered under the
purview of the act

Instant Customer Support: Although traditional banks bring in the trust factor, they fail to enforce timely resolution of customer grievances. Neo banks
are making a real dent on this front by taking customer support to another level. Users can directly connect to agents and communicate on the app itself
Developing a portal that provides complete information about all the MSME schemes in all the widely
through the chat box to resolve their problems. 
D
used languages

End-to-end analysis: It is so easy to lose sight of your financial goals when you don’t keep track of where your money is going and how it is being used.
Neo banks have made it super simple for users to analyze their spending behavior by effectively categorizing the expenditures. These banks also help you
Running training programmes to educate bank staff about the MSME sector and ways to cater to this
in tracking other bank accounts.

section

Efficacious Digital Tools: Neo banks provide their customers with powerful, yet simple digital tools that help the users to get ahead in personal finance.
These fintech startups are very strong on the technological part which no traditional behemoth can cope up with.
Awareness campaigns to make entrepreneurs financially literate and technologically sound with special
focus on cost-effective marketing techniques like digital marketing

Introduction Market Composition The Road Ahead