Shriram edpm chapter-3

Entrepreneurship Development
Dr. Shriram S. Dawkhar.

Entrepreneurship Competency
• "Entrepreneurship Competency" refers to the key
characteristics that should be possessed by
successful or budding entrepreneurs in order to
perform entrepreneurial functions effectively.
• It can be defined as characteristics such as
generic and specific knowledge, motives, traits,
self-images, social roles, and skills that result in
venture birth, survival, and/or growth.

What are entrepreneurial competencies?
• Entrepreneurial competencies are the skills necessary
for an entrepreneur to
---venture into an enterprise
---organize and manage an enterprise ably and
competently
---realize the goal for which the enterprise is
established
• These competencies help and entrepreneur to
successfully venture into an enterprise.
• These can be broadly classified under the following
categories.
• 1) Behavioral competencies
• 2)Enterprise launching competencies
• 3)Enterprise managing competencies

entrepreneurial competencies
1) Behavioral competencies
– Initiative
– Systematic planning
– Creativity and innovation
– Risk taking and Risk Management
– Problem solving
– Persistence
– Quality performance
– Information management
– Persuation and influencing abilities

entrepreneurial competencies
Enterprise managing competencies

EDII Study on Competencies
• Entrepreneurship Development Institute of India,
Ahmedabad conducted a research study to
identify what makes an entrepreneur successful.
• The study was conducted under the guidance of
Prof. David C. McClelland, a well known
behavioural scientist in three countries namely
India, Malawi and Equodor.
• The outcome of the study has been identification
of a set of entrepreneurial competencies or
characteristics that result in superior
performance.

The major finding of the study
• Following is the list of major competencies
identified by the study that lead to superior
performance of the entrepreneurs :
• 1. Initiative. 2. Looking for opportunities.
3. Persistence. 4. Information Seeker.
5. Quality Conscious. 6. Committed to work.
7. Efficiency seeker. 8. Proper planning.
9. Problem Solver. 10. Self-confidence.
11. Assertive. 12. Persuative.
13. Efficient monitor. 14. Employees’ well wisher.
15. Effective strategist.

DEVELOPING COMPETENCIES
• As mentioned earlier, competency results in
superior performance.
• Competency finds expression in human behaviour.
• How to develop and sharpen the entrepreneurial
competency is suggested in the following method
or procedure.
• The procedure involves four steps. These are :
• 1. Competency Recognition
• 2. Self- Assessment
• 3. Competency Application
• 4. Feed back

1. Competency Recognition
• Acquisition of a new behaviour begins with
understanding and recognition of what a
particular behaviour means.
• In other words, the first step involved in
developing a particular competence is first to
understand and recognize a particular
competence

2. Self- Assessment
• Once the particular competence is understood
and recognized, the next step towards acquiring a
particular behaviour/competence is to see
whether one possesses the particular competence
or not. If yes, then to see how frequently one
exhibits the same in his practical life.
• Where one stands with respect to a particular
competence or what is the level of one’s
competence can be ascertained by posing and
answering relevant questions to a competence.

3. Competency Application
• Having known where one stands with respect to
a particular competency, one needs to practice
the same on continuous basis in various
activities.
• In order to make a new behaviour a part of one’s
personality, the particular behavior /competency
needs to be applied frequently even in the
simplest activities that one performs in one’s
day-to-day life.
• This is because “practice makes a man perfect”.

4. Feed back
• After understanding, internalising and practicing a
particular behaviour or competence, one needs to
make an introspection of the same in order’ to
sharpen and strengthen ‘one’s competency. This is
called ‘feedback’.
• In simple terms, feedback means to know the
strengths and weaknesses of one’s new behaviour.
• This helps one know how the new behaviour has
been rewarding.
• This enables one to sustain or give up the exhibition
of a particular behaviour or competence in his
future life.

How do governments provide
incentives to entrepreneurs?
The government provide incentives to
entrepreneurs by providing conducive
conditions for entrepreneurial growth by
providing facilities such as
1.Tax holiday
2.Subsidies
3.Soft loans

Role of Central and State Government in
promoting entrepreneurship
• In 1948, Immediately after independence,
government introduced the industrial policy
resolution.
• This outlined the approach to industrial
growth and development.
• Compressively revised in 1956, & modified
through statements in 1973, 1977 and 1980.

2019
• The new industrial policy will incorporate the
National Manufacturing Policy, but its objectives will
be far wider and it will handle issues such as
• promoting emerging technologies;
• building an innovation-driven economy;
• promoting high-quality industrial infrastructure;
• providing enhanced access to affordable capital,
especially for micro, small and medium enterprises;
• strengthening linkages between trade and
manufacturing;
• enhancing skill development; and
• making it easier to do business

Maharashtra Industrial Policy 1st April
2019
• Maharashtra Industrial Development Corporation
(MIDC), the state also ensures land (both
developed and undeveloped) availability to the
investors
• Abundant Highly qualified and Skilled Labour
Pool:
• Established Industrial Ecosystem
• Promote setting up of industrial clusters
• Vision : Maharashtra - a global investment,
manufacturing and technology hub, promoting
sustainable development.

• Promotion of Micro, Small and Medium Enterprises
(MSMEs) and Small Industries :-
• MSMEs are the backbone of State‟s economy. With
more than 3 million MSMEs, Maharashtra has largest
number of MSME in the country, which contributes
more than 80 per cent of the total employment.
• The investment limit for incentive purpose for small
industrial units will be increased upto INR 50 crore in
Fixed Capital Investment (FCI) so that more such units
can come under the ambit of small industries.

• Launching of new flagship scheme - Chief Minister
Employment Generation Programme:
• Under the scheme eligible persons aged between 18
and 45 years will be trained and promoted for self-
employment for which equity to be converted into
back end subsidy, which will be provided by State
Government against bank loans.
• The project cost will be up to a maximum of INR 50
lakh under manufacturing sector and INR 10 lakh
under business/ service sector.
• State Level Udyog Awards

Fiscal Incentives to MSMEs
• Maharashtra state offers most attractive fiscal incentive in the country.
• For the purpose of this policy, MSME shall include units as per the
definition of Government of India- Micro, Small and Medium
Enterprises Development (MSMED) Act, 2006, as well as the small
industries with FCI of upto INR 50 crore.
• Interest subsidy @ 5 per cent p.a., maximum upto the value of
electricity consumed and bills paid for that year, will be admissible.
• In addition to incentives listed above, eligible MSMEs will be entitled to
100 per cent stamp duty exemption within investment period for
acquiring land (including assignment of lease rights and sale
certificate) and for term loan purposes.
• No Industries Districts and Naxalism affected Area will also be entitled
to exemption from payment of electricity duty for a tenure equal to
the eligibility period. However in A and B areas, Electricity Duty
exemption will be offered to 100 per cent EOU Large Scale units and
IT/BT units for 7 years.

Role of Central and State Government
in promoting entrepreneurship
• The govt. provides many incentives and support
facilities for the promotion of entrepreneurs in
India.
• Entrepreneurs need these incentives for setting up
industries of their own.
• These incentives are also necessary to initiate
expansion and modernization programme.
• By providing assistance and incentives, the govt.
can accelerate the process of entreprenerial
development.

Role of Central and State Government in
promoting entrepreneurship
• Entrepreneurs in India are offered number of incentives
because they fulfil two important objectives of economic
development.
• 1) Entrepreneurs facilitate the decentralization of economic
power by encouraging prosepective entrepreneurs to take up
industrial ventures and assist in the dispersal of industries
over the entire geographical area of the country.
• 2) Entrepreneurs facilitate the transformation of traditional
technology, which is charactrised by low skills, low
productivity and low wages into modern technology, which is
charactrised by improved skills, high productivity, rising wages
and a higher standard of living.
• Incentives & subsidies serve as a catalyst to start a dynamic
process of development.

Need & Importance of Govt. Role
• The need for providing assistance and incentives
to the entrpreneurs arises due to the following
reasons.
• 1) To encourage entrepreneurs to undertake new
ventures.
• 2) To develop their units in backward areas.
• 3) To promote balanced regional development and
to ensure uniformity in the development process
in all regions.
• 4)To encourage first generation entrepreneurs to
work for industrial development of the county.

Need & Importance of Govt. Role
• 5) To improve the competitive strength of
entrepreneurs to face competitive environment of the
industry.
• 6) To remove impediments and economic constraints
in the way of entrepreneurial development.
• 7) To create motivational force to improve
productivity of entrepreneurs.
• 8) To initiate expansion and modernization
programme.
• 9) To accelerate the process of industrialization.
• 10) To build infrastructural facilities for setting up
units.

Incentives
• The term incentives in general one and includes
subsidies, bounties and concessions.
• Subsidy:
• Denotes a single lump sum which is given by a
government to an industry.
• It is granted to an industry which is considered
essentials in the national interest.
• Bounties :
• Denotes bonus or financial aid which is given by a
government to an industry to help it compete with
other units in the national or in a foreign market.

Incentives
• Concession:
• is the act of conceding.
• Something granted specially by a government
to be used for specific purpose.

Benefits to Export Oriented Units
• The EOU scheme was introduced in the year
1980 by Ministry of Commerce resolution
dated 31st Dec. 1980.
• The purpose of the scheme was basically to
boost exports by creating additional
production facility.
• Electricity Duty exemption will be offered to
100 per cent Export Oriented MSMEs and
IT/BT units for seven years. (2019)

Benefits offered to 100% EOUs
• 1) Full duty exemption on all imports.
• 2) Tax holiday for any 5 consecutive years within 8 years
from the commencement of production.
• 3) Full exemption from sales tax and excise duty on all
local purchases.
• 4) Permission to convert all foreign exchange earning at
market determined rate.
• 5) Permission to have upto 100% foreign equity.
• 6) EOUc/EPZ units can raise foreign currency loans,
suject to certain conditions.
• 7) Industrial plots are available at concessional rate.
• 8) Rehabilitation allowances.

Additional Benefits
• Fiscal & Tax concession:
• 1) Investment subsidy to all new tiny and small
scale industries to be established in areas other
than developed areas.
• 2) Additional subsidy to an extent of 5% of the
value of fixed assets subject to a ceiling of Rs. 1
lakh to entrepreneurs belonging to SC & ST.

District Industries Center
• The District Industries Centers programme was
launched in 1978 for effective promotion of
cottage and small scale industries widely
dispersed in rural areas and small towns.
• These centers are the focal points providing all
the services and support required by small scale
and village entrepreneurs under one roof.
• These serves as an integrated administrative
framework at the district level for industrial
development.

Role of the District Industries Centre (DIC)
in the Entrepreneurship Development
• 1.To work as a facilitator for overall Industrial
development of the District.
• 2.To accept & Register Entrepreneur
memorandum.
• 3.Help to establish Micro, Small &Medium Scale
Industries
• 4.To Implement various schemes like P.M.E.G.P.,
Seed Money & D.I.C. loan for unemployed
educated people for self employment.

• 5.To encourage SSI sector by rewarding "District
Awards" to Small Scale Industries.
• 6.To coordinate the forum of Zilha Udyog Mitra
Committee.
• 7.To Organize Entrepreneurship development
Programs for unemployed youths for skill up
gradation.
• 8.To Implement Package Schemes of Incentives.
• 9.To work as Nodal agency for Central Govt.
Programmes

• 10) Formation of industrial Co-operative societies
in the district.
• 11) Conducting seminars, workshops , etc on
industrial development subjects.
• 12) Identify sick units and declaring them through
District Sick unit declaration committee.
• 13) Recommending the industrial units for award
of state and central govt.
• 14) counducting regular meeting with local SSI
units to solve any particular problem of SSI’s.
• 15) Assisting the entrepreneurs to get scare raw
material.

• 16) It conducts surveys to know industrial potential of
a district keeping in view the availability of raw
material, human skills, infrastructure, demand, etc.
• 17) It prepares an action plan for industrial
development.
• 18) It appraises the various investment proposals
received from entrepreneurs.
• 19) It guides and assists entrepreneurs in buying
appropriate machinery and equipment and raw
material.

• 20) It suggests appropriate marketing
strategies to entrepreneurs.
• 21) It maintains links with research and
development institutions for upgradation of
technology, quality improvement, industrial
training etc.

SISI (Small Industries Service Institute )
• The small Industries Service Institute (SISI) are
the field offices of Small Industries Development
Organisation (SIDO), Ministry of Small Scale
Industries, Govt. of India, set up for the
promotion and development of Small Scale
Industries in the State in the early fifties.
• This Institute provides support / services to the
State Government as well as co-ordinates various
activities at the state level for promotion and
development of small scale industries..

SISI
• Small Industries Service Institute, Mumbai
provides various types of extension services and
assistance in setting up of units, promoting and
developing product and Services by the Small
Scale Industries.

Role of SISI
• The Institute has Technical Officers to provide
guidance in all trades i.e.
• Metallurgy,
• Mechanical,
• Chemical,
• Leather,
• Glass & Ceramics,
• Electrical,
• Electronics,
• Food Industry,
• Management & Economic Investigation.

SISI
1) Technical Consultancy
2) Industrial Management Training
3) Economic Information / Advisory service
4) Entrepreneurial Development Programme
5) Scheme for Educated Unemployed Youth /
Prime Minister's Rojgar Yojana
6) Technology Resource Centre - is set up with an
objective of creating database useful for SMEs in
India. A large net work of useful sites and data
base is under creation for the help of SMEs.

SISI
• 7) Ancillary Developments / Sub-Contract
Exchange
8) Marketing Assistance
9) Export Promotion Marketing
10) Modernisation / Upgradation Technology
11) Assistance to Rehabilitation of sick units
12) Common Facility & Training
13) Assistance to District Industries Centre /
State Govt. / Various Developmental
Agencies in the State

SISI
• 14) Technical Assistance to various Central Government
Agencies like Director General of Foreign Trade, National
Small Industries Corporation, Central Excise, Bureau of
Indian Standards, CSIR etc.
15) Exhibition / Demonstration.
16) CAD / CAM Training : SISI, Mumbai has set up a CAD /
CAM Training Centre in association with Indo German Tool
Room, Aurangabad.
• Training Programmes on softwares like CATIA (Computer-
Aided Three-Dimensional Interactive Application), Master CAM,
Unigraphics, Solid Edge,MDT, Inventer etc. are
conducted in suitable batches.

SISI
• 17) Biotechnology Cell : Biotechnology cell
is set up to provide guidance on
biotechnology project
18) Toy Designing Cell : is set up to provide
technical assistance / guidance to SSI
Entrepreneurs to design better quality
toys.

The National Institute For
Entrepreneurship and Small Business
Development
NIESBUD

NATIONAL INSTITUTE FOR ENTREPRENEURSHIP AND
SMALL BUSINESS DEVELOPMENT (NIESBUD)
• The National Institute for Entrepreneurship & Small
Business Development (NIESBUD), was set up in
1983 as an apex institution in the field of
entrepreneurship development to promote,
support and sustain entrepreneurship and small
business through training, education, research and
consultancy services.
• NIESBUD registred as a society under Govt. of India
Societies Act ( XXI of 1860) started functioning from
6th july, 1983.

Objectives of the NIESBUD
• To accelerate the process of entrepreneurship
development .
• To help /support institutions/agencies in
carrying out activities relating to
entrepreneurship development .
• To evolve standardized process of selection,
training support and sustenance to potential
entrepreneurs enabling them to set up and
run their enterprise successfully.

Objectives of the NIESBUD
• To provide vital information support to
trainers, promoters and entrepreneurs by
organizing documentation and research work
relevant to entrepreneurship development.

Functions performed by NIESBUD
• To serve as an apex national level institute
• To organize and conduct training programmes
• To coordinate the training activities of various
institutes and organizations imparting training in
entrepreneurship
• To affiliate institutes and organizations
conducting entrepreneurship training.
• To identify , train and assist potential in setting
up self employment ventures in small industries
including service industries.

• To hold examinations and tests and confer
certificates and diploma on the trainers as
well as trainees
• To conduct workshops ,seminars and
conferences,etc for promotion and
development of entrepreneurship in small
scale industries and small business.
• To publish literature for entrepreneurship and
small business development.

• To assist in setting up of regional and state
level training institutes for entrepreneurship
and small business development
• To provide a forum for interaction and
exchange of view with agencies engaged in
various aspect of entrepreneurship in small
industries.

A national resource institution committed to promoting
entrepreneurs through education, training, research and
institution building
Set up in 1983 by National Financial Institutions viz. IDBI, ICICI,
IFCI & SBI
Recognized as a ‘ Centre of Excellence for HRD Research &
training’ by UNESCAP
Has established centers in Cambodia, Laos, Myanmar, Saudi
Arabia, Vietnam, Sudan and Mozambique. Setting up ED
Centers in Uzbekistan and Kazakhstan
ABOUT EDI
Offers 2-year Post Graduate Diploma in Entrepreneurship,
besides a well established distance learning programme in
Entrepreneurship
Focuses research through it’s ‘Center for Research in
Entrepreneurship Education and Development’ (CREED)

The Entrepreneurship Development
Institute of India (EDII),
• The Government of Gujarat pledged twenty-
three acres of land on which stands the
majestic and sprawling EDI campus.

• To augment supply of new, competent and globally
competitive entrepreneurs through education,
training & research
• To increase competitiveness of SMEs
• To contribute to the dispersal of business ownership
and thus expand social base of entrepreneurial class
• To contribute to creation & dissemination of
knowledge in entrepreneurial theory & practice
and undertake policy advocacy to create a conducive
environment wherein SMEs could germinate and grow.
EDI’s Mandate/ objectives
• To promote inter-firm cooperation and
collaboration to achieve competitive edge through
cluster, value chain and local area development

EDI FOCUS ON
• Entrepreneurship Education
• Micro-enterprise & Micro-finance Development.
• Performance Improvement & Growth of Existing
Entrepreneurs
• ED Organisations and Support System
• Cluster and value chain development.
• Social Entrepreneurship
• Women Entrepreneurship
• Research in Entrepreneurship Education and
Development

Entrepreneurship development
institute of india (edii)
• EDII, Ahmadabad is an autonomous non-profit
institution, set up in 1983.
• Sponsored by: IDBI, IFCI, ICICI, and SBI
• Govt of Gujarat has also provided assistance for
the setting up of EDII.
www.resourceforu.blogspot.com

Aim behind edii
• EDII has been spearheading (leading) an
entrepreneurship movement throughout the
nation with a belief that Entrepreneurs need not
necessarily be born; they can be developed
through well – conceived and well- directed
activities.

Training programmes
• Entrepreneurship in education
• Micro finance and Micro enterprise
development
• Performance and growth of existing
Entrepreneurs.
• Performance improvement of ED institutions
and programmes.

How the Entrepreneurs are Developed?
Persons in the age group of 18 to 45 years are preferred
THE EDI PROGRAMME PACKAGE
(i) Identifying and selecting those who can be developed as
entrepreneurs
(ii) Developing their entrepreneurial capabilities.
(iii) Ensuring that each potential entrepreneur has a viable
industrial project
(iv) Equipping them with basic managerial understanding
(v) Helping them secure financial, infrastructural and related
assistance

National Entrepreneurship Development Board
(NEDB)
• Scheme Objectives :
The main objective of the National
Entrepreneurship Development Board (NEDB)
Scheme is promotion of entrepreneurship for
encouraging self-employment in small scale
industries and small business.

Role (NEDB )
• (i) To identify and remove entry barriers for potential
entrepreneurs (first generation and new entrepreneurs)
including study on entrepreneurship development.
• (ii) To focus on existing entrepreneurs in micro, tiny and
small sector and identify and remove constraints to
survivals, growth and continuously improve performance.
• (iii) To facilitate the consolidation, growth and
diversification of existing entrepreneurial venture in all
possible ways.
• (iv) To support skill upgradation and renewal of learning
processes among practicing entrepreneurs and managers
of micro, tiny, small and medium enterprises.

Salient Features / Role (NEDB )
• (v) To sensitize to support agencies in the area of
entrepreneurship about the current requirement of
growth.
• (vi) To act as catalyst to institutionalize entrepreneurship
development by supporting and strengthening state level
institutions for entrepreneurship development as most
entrepreneurship related activities take place at the grass
root level and removing various constraints to their
effective functioning.
• (vii) Setting up of incubators by entrepreneurship
development institutions and other organizations devoted
to the promotion of entrepreneurship development.

Entrepreneurship Development Program (EDP)
• Entrepreneurial development is an act of encouraging
people for entrepreneurial career and making them
capable of exploiting business opportunities.
• It is not simply a training task.
• It is the act of motivating and developing skills of
potential entrepreneur and helping them in developing
their own ventures.
• ” Entrepreneurial Development Programme (EDP) may
be defined as “a programme designed to help an
individual in strengthening his entrepreneurial motive
and in acquiring skill andcapabilities necessary for
playing his entrepreneurial role effectively.”

Need for Entrepreneurship Development
Program
• 1) For Rapid Industrial Development
• 2) For Rapid Economic Development
• 3) For creation of new sources of income for government
• 4) For Progress and Expansion of Social Wealth.
• 5) For Socio-economic Development
• 6) For development of Managerial skills.

Unit -4
•Introduction to various
incentives, subsidies and
Grants by Government

4. Introduction to various incentives, subsidies
and Grants by Government
• Government schemes for businesses in India mainly
focus on providing the much needed capital for
investment at subsidised interest rates, which in turn
encourages people to realise their dreams with their
own ventures.
• Although there are tons of schemes available, here’s
looking at 10 of the most viable startup schemes.

1) MUDRA
• 1) MUDRA – The Micro Units Development and
Refinance Agency or MUDRA, is a flagship program by
the government of India to provide funds to micro and
small enterprises.
• What sets MUDRA apart from other loan schemes is
the fact that no collateral is required to avail this loan.
• It is applicable for manufacturing, trading, and even
allied agricultural services. It has 3 modules, Shishu
(loan up to 50,000), Kishor (Loan between 50,000 and
5 lakh) and Tarun (Loan between 5 lakh and 10 lakh

2) NABARD
• 2) NABARD – The National Bank for Agriculture And Rural
Development, or NABARD, for short, is primarily aimed
towards providing credit benefits to agriculture as well as
other cottage and village industries.
• It also provides finance to lending institutions in villages.
With schemes for food processing plants and integrated
rural development, NABARD works in conjunction with
the RBI to implement and regulate financial assistance in
rural areas.
• Its Dairy Entrepreneurship Development scheme offers
up to 90% of the project cost (minimum 10 lakhs to
maximum 150 lakhs) to budding entrepreneurs.

3) Credit Guarantee Scheme
• 3) Credit Guarantee Scheme – The CGTMSE (Credit Guarantee Fund
Trust for Micro and Small Enterprises) was set up by the
Government of India to provide business loans to micro and small
industries, with zero collateral.
• This means that new and upcoming startups can avail loans at
highly subsidised interest rates without providing any security.
• Working along with SIDBI (Small Industries Development Bank of
India), the government provides a maximum amount of up to 100
lakhs under this scheme, for boosting new enterprises as well as
rehabilitating existing ones.
• Primarily for manufacturing units, this loan can be availed in the
form of working capital or term loan.

4) Stand Up India Scheme
• 4) Stand Up India Scheme – Launched in 2016, this scheme was
implemented to cater to women entrepreneurs, as well as those
from SC and ST communities.
• Ranging from 10 lakh to 100 lakh, it is available for Greenfield
ventures in manufacturing, trading, and service units.
• Under this scheme, it is mandatory for every bank to lend money
to at least one woman entrepreneur and one SC/ST unit per
branch.
• In case of non-individual businesses, the woman entrepreneur
must hold at least a 51% stake in the unit.
• The loan can be provided as working capital with a maximum
return period of 7 years.

5) NewGen IEDC
• 5) NewGen IEDC – Introduced last year, the
NewGen Innovation and Entrepreneurship
Development Centre is applicable to industries
like healthcare services, chemicals, hardware,
aeronautical/defense, IT, AR/VR, construction,
design, food and beverages, textiles,
nanotechnology, and renewable and non-
renewable energy sources, among others.
• It provides a one-time non-recurring loan of up to
25 lakhs to finance startup units.

6) AIC
• 6) AIC – Headed by the Atal Innovation Mission, the Atal
Incubation Centres provide grant-in-aid of Rs. 10 Cr to
every AIC.
• The duration of the grant is a maximum of 5 years.
• Set up under the NITI aayog, the purpose of AICs will be to
provide financial aid and infrastructure assistance to different
startups. (in sectors like chemicals, technology hardware, healthcare & life
sciences, aeronautics/aerospace & defence, agriculture, AI, AR/VR (augmented +
virtual reality), automotive, telecommunication & networking, construction, design,
non-renewable energy, renewable energy, green technology, fintech, Internet of
Things, nanotechnology, and food & beverages, among others.)
• Conducting training and entrepreneurship workshops,
organizing inspirational programs, enabling access to
necessary infrastructure, prototyping or research facilities, as
well as creating a group of mentors to guide the
entrepreneurs, are some of the tasks that an AIC is expected

7) CLCSS
• 7) CLCSS – Under MSME, the Credit Linked Capital
Subsidy Scheme is a means to provide subsidy to
manufacturing units who have upgraded their machinery
with state-of-the-art equipment.
• This scheme is meant to encourage manufacturing units
to buy the latest equipment, and facilitate technology
upgradation.
• The way this works is that any SSI unit which has
upgraded its machinery can apply for a 15% subsidy on a
loan amount of up to 1 Cr.

8) SMILE
• 8) SMILE – The SIDBI Make in India Soft Loan Fund for
Micro, Small, and Medium Enterprises provides soft
loans to MSME units at reasonable terms, to meet
the debt-equity ratio of a unit or to help in its growth
and expansion.
• The loan is applicable for a maximum period of 3
years. The amount disbursed varies on the category
the unit falls under, with 10% or a maximum of 20
lakhs for General category, and 15% or a maximum of
30 lakhs for SC/ST, PwD, and women.

9) Loan for Rooftop Solar PV Power Projects
• 9) Loan for Rooftop Solar PV Power Projects – Headed
by the Indian Renewable Energy Development Agency
(IREDA),
• this scheme promotes renewable energy development
by providing support for solar PV projects on rooftops.
• The IREDA will provide 70% of the project cost, while
the entrepreneur will contribute the remaining 30% of
the amount.
• In some projects, where the unit has great track record,
higher benefits, and more productivity, the IREDA may
extend the loan amount to 75% of the project cost. The
loan has to be repaid in a maximum of 9 years.

10) M-SIPS
• 10) M-SIPS – The Modified Special Incentive Package
Scheme provides capital subsidies to manufacturing
and electronic units in sectors of technology
hardware, IoT, automotive, renewable and non-
renewable energy sources, nanotechnology, green
technology, and aerospace and defense industries.
• Under this scheme, there’s a provision for 20%
capital subsidy in SEZ, and 25% in non-SEZ, for
business units in manufacturing and electronics.

DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION
MINISTRY OF COMMERCE AND INDUSTRY
GOVERNMENT OF INDIA

THE CHALLENGES
• Grow at 10% for 3 decades
• Ease of doing business
• Making India a part of global supply chain
• Boosting domestic businesses
• Developing India to a manufacturing based economy
• Young India – skilling the nation and creating
opportunities
• Making India hub for R&D
• Urbanization – a unique opportunity

MAKE IN INDIA INITIATIVE
New Processes
Ease of Doing Business
is one of the most crucial
factors to promote
India as a preferred
manufacturing
destination
Ease of Doing Business
Improved business
processes and procedures
open up new avenues of
opportunities and create
confidence among
entrepreneurs

New Sectors
New sectors opened up to
provide impetus to
domestic industries
Major FDI reforms
and inflows
FDI stimulates country’s
economic development
and creates more
conducive environment for
the industry to grow

New Approach
National initiatives to
showcase manufacturing
prowess and opportunities
along with developing
talent and
entrepreneurship
Make in India
Digital India
Skill India

MAKE IN INDIA
4.25
Million
Facebook Fan
2.38
Million Twitter
Followers
23.8
Million pages views
Social
Media
Statistics/
Reach
Make in India
has alleviated India
as a manufacturing
destination on the
world stage. India
has become 6th
largest
manufacturing
country in the
world from 9th after
Make in India
Narendra Modi
Prime Minister of India

MAKE IN INDIA
▪ Objective is to promote India as the most
preferred global manufacturing destination
▪ MII Action Plan prepared in 2014 for 21
focus sectors drawn in consultation with
state governments, union ministries and
industry stakeholders
▪ Under the MII Action Plan, a total of 57
short term Action Plans & 65 Medium
Term action plans were formulated
▪ 73% implementation has been achieved
for short term action 34%
implementation for medium term

MAKE IN INDIA
Another milestone in improving the ‘Ease of Doing Business’ in India. Designed to attract more German companies
to India by making the market entry of Mittelstand companies a smooth process. This will be replicated across
other identified countries
Taking MII to Global Arena - Make in India Mittelstand (MIIM)
Service
Offerings
Strategic Consulting
Operational market entry support
Financial Services
Location Services
Facilitation of approval from
Central & State agencies
Merger & Acquisition
Advice
Tax & Legal
Support
Project
Finances
Technology
Collaboration
Access to government agencies

New Infrastructure
Infrastructure
development to facilitate
manufacturing and
urbanization
Industrialization
Urbanization
Drive economic growth
and improve the quality of
life of citizens by enabling
industrial and urban
infrastructure
development

New Design,
Innovation and R&D
Establishing an ecosystem
to boost design,
innovation and R&D
Innovation
Startup India
Intellectual Property Regime
Investment in innovation and
R&D offers large payoffs in
terms of economic growth and
competitiveness in global
economy

New Mindset
In order to partner with
industry in economic
development. Government
shall act as facilitator and
not regulator
From red tape
to red carpet
Create a encouraging
business ecosystem
enabling government
and private sector work
in tandem towards a
common goal of
economic development

Shriram edpm chapter-3

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Shriram edpm chapter-3