Maharashtra, often described as the engine of India’s economy, has been a leader in the field of development and inventions for a long time. The state government has initiated various measures to promote the growth of young and new entrepreneurs, thereby establishing a conducive environment for conducting business activities. In this article, we shall discuss the different government schemes for entrepreneurs, the financial assistance schemes, and the policies aimed at the development of the industries and the promotion of entrepreneurs in Maharashtra.
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Maharashtra Industrial Policy 2019-2024
In order to update the state’s economic structure, the Maharashtra Industrial Policy is drawn from 2019 to 2024. The ambition of this policy is to transform Maharashtra into a Trillion Dollar economy by the year 2025. This all-encompassing policy is aimed at improving the manufacturing environment almost via each aspect of fiscal and non-fiscal policies adjustments including better Doing Business Index.
The policy has the following fundamental goals:
- To increase industrial investments
- To enhance MSME (Micro, Small and Medium Enterprises) Development
- To generate more jobs
- To encourage industrialization which is geographically inclusive, and, eco-friendly
In order to accomplish these objectives, the policy provides for a number of enablers:
- Infrastructure development
- Focus on thrust sectors
- Fiscal support for women entrepreneurs, SC/ST, and less developed regions
- Critical Infrastructure Fund
Financial Assistance for Startups
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Maharashtra extends different financial assistance for the startups and entrepreneurs to help develop and innovate. These schemes are to ensure availability of funds and assets critical for business expansion.
Seed Money Scheme (SMS)
The Seed Money Scheme is a financial scheme targeted toward the small and medium enterprises or businesses in order to help them grow with their own identity. This scheme is especially useful in case of projects worth upto Rs. 25 lakhs as it provides the entrepreneurs a chance to implement their thoughts.
District Industries Centre Loan Scheme
This initiative encourages entrepreneurship among rural and semi urban regions. It is primarily aimed at extending credit to borrowers who have exposed their existing plant and machinery in the range of Rs. 2 lakhs so as to make those in the less developed regions earn and augment the economy.
Maharashtra State Innovation Society Support
The Maharashtra State Innovation Society is giving Rs. 5 crore or more for incubation centers. They also offer seed capital grants as well as accelerator support for startups so as to avail the innovators the requisite resources for carrying out their activities.
Innovation and Transformation Capital Fund
Using IDBI Capital and the World Bank as partners, Maharashtra launched two dedicated funds for the start-up enterprises –
- Maharashtra Entrepreneurship and Transformation Capital: A Rs. 100 crore fund which is in collaboration with SIDBI for the purpose of funding such creative initiatives.
Government Schemes for Entrepreneurs
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The government of Maharashtra is also committed to providing a conducive business climate by implementing various government schemes for the entrepreneurs.
Prime Minister’s Employment Generation Programme (PMEGP)
This scheme is implemented through the Khadi and Village Industries Commission (KVIC). The objective of the scheme is to promote self-employment and provide employment through the provision of finances. Accordingly, the PMEGP adds to the initiative by providing funds for new businesses aimed at increasing the productivity of the state.
Chief Minister Employment Generation Program
This particular program is designed for unemployed persons aged 18 to 45 years. It gives them training and encourages them to be self-employed. The scheme provides equity which is converted into back-end subsidy for the beneficiary against the loans taken from the bank, project costs are related to manufacturing sector upto Rs. 50 lakh and Rs. 10 lakh for business/service sector.
Stand Up India Scheme
This scheme provides financial assistance to entrepreneurs belonging to scheduled castes, scheduled tribes and women in the form of loans ranging from Rs. 10 lakh to more than Rs. 1 crore. This attempt aims at ensuring diversity and enabling the growth of all the sections equally irrespective of their background.
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Industrial Infrastructure Support
The State of Maharashtra has crafted its industrial infrastructure with the objective of catering to diverse industries such as IT, industrial production, and the Over the Top sector.
IT Parks and IT-ITES Units
The government of the state of Maharashtra encourages the development of integrated information technology estates, private information technology parks and IT-ITES units in zones such as residential zones and green belts. This is aimed at enhancing the IT landscape in the state.
Data Center Parks
Maharashtra Industrial Development Corporation (MIDC) also assists in the development of data center parks by providing the essential infrastructure and utilities. This involves development of roading, provision of power and water, and establishment of connectivity to enable the data centers to function optimally.
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Sector-Specific Initiatives
Manufacturing Sector Focus
The Maharashtra Industrial Policy 2019-2024 encourages growth in the range of industrial activities, with particular emphasis on the manufacturing industry. And it is no surprise that this particular aspect has registered a considerable increase, with the gross value added by the sector increasing from 46 billion dollars in fY14 to 64 billion dollars in fY22. The government’s aspirations of building a solid manufacturing base in the state can easily explain such increased performance.
AVGC Industry Support
For niche sectors such as Animation, Visual Effects, Gaming and Comics (AVGC), the government provides subsidies of up to INR 250 million or 25% of the capital expenditure. This has ensured that creative industries flourish in the state of Maharashtra.
Emerging Technologies
The policy has a scheme of capital support dealt in a more focused manner for some recent technologies like AI, cloud computing etc. The organization will set up a Centre of Excellence to build the industry ecosystem for such frontier technologies, enabling enhanced innovation and growth.
Ease of Doing Business Initiatives
Single Window Clearance
All IT Projects and IT-enabled services approvals in the state run under a single window clearance mechanism managed by the state’s industrial department. This encourages entrepreneurs as it cuts down on the bureaucratic process and facilitates faster approvals of projects.
Maharashtra Information Technology Interface (MAHITI Portal)
This portal offers clearances of a limited period for projects, units registration, and incentives making it easy for entrepreneurs and start-ups. The Maharashtra government is improving the business engagement between the state and the entrepreneurs by adoption of technology.
MSME Support
M-Hub Initiative
The government has sanctioned 5 billion INR for setting up the Maharashtra hub (M-Hub) to help the growth of innovation of micro, small and medium enterprises , start-ups and incubation facilities in the new technology areas. The goal of this initiative is to develop a community of entrepreneurs that can utilize each other’s resources and expertise.
Procurement Support
As per the 2016 public procurement policy, the government provides support to procurements made by startups up to 10% of work orders placed by the relevant government departments, without the requirement of Earnest Money Deposit. This situation allows for the possibility of government procurements for attitudes within the start-up ecosystem, thereby supporting their survival and growth.
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Conclusion
The industrial policy of Maharashtra favours the entrepreneurs and start-ups. Initiatives of the government are provided for the establishment and promotion of start-ups. It includes key sectors such as manufacturing, information technology and emerging technologies. The state invests in innovative development and industrialisation.
The government provides funding and sets up infrastructure to favour the establishment of start-ups. This way, Maharashtra aims to become a trillion-dollar economy by 2030. Policies that are business friendly have made Maharashtra an attractive state for entrepreneurs to establish their businesses.
Such strategies facilitate entrepreneurship and industrialisation in Maharashtra. The support mechanisms drive growth for entrepreneurs and start-ups. Maharashtra is reinforcing its position as an industrial hub.
This financial assistance and schemes promote entrepreneurial culture among the people. Such plans are beneficial for both the individuals and the national economy as a whole.
