Yojana Magazine Gist for UPSC Exam: April 2023 Issue

Yojana Magazine is an important source of material for the UPSC exam. The monthly magazine provides details of major government schemes and programmes in various domains. Moreover, coming from the government, it is an authentic source of information for the UPSC Exam. Here, we provide the Gist of Yojana, exclusively for the IAS Exam.

TABLE OF CONTENTS

1. Opportunities for Youth in the Startup Ecosystem
2. Startup India Action Plan
3. Startup20 Empowerment Group
4. Agri-Startups
5. Women entrepreneurship in MSME Sector
6. Opportunities for MSMEs in ‘Amrit Kaal’
7. Startups-reaching last mile
8. Antyodaya and Mass Media
9. Incubators-the growth enablers

Chapter 1: Opportunities for Youth in the Startup Ecosystem

Introduction:

India is home to one of the largest youth populations in the world. According to the United Nations, India has over 356 million young people aged between 10-24 years, which accounts for over 27% of the country’s total population.
In contrast, developed countries such as the United States and Japan have significantly smaller youth populations, with 64 million and 22 million young people, respectively.
This demographic advantage presents several opportunities for the Indian startup ecosystem.

New India: Opportunities for Youth:

The Union government has launched several initiatives to promote entrepreneurship and innovation in the country.
The ‘Startup India’ initiative, launched in 2016, aims to create a conducive environment for startups to thrive in India.
- The initiative provides several benefits to startups, including tax exemptions, access to funding, and simplified regulations.
Out of the $950 billion in FDI received since independence, $532 billion came since 2015 from 162 countries in 61 sectors to the 31 states & UTs.
With the initiatives like Digital India, broadband connectivity in villages drove the growth of the startup ecosystem.
‘MAARG’ portal is helping innovators and startups from remote areas to get access to crucial opportunities and funding ecosystems.

Image Source: Yojana

Knowledge based Digital Economy:

In the Union Budget 2023-24, the Union Finance Minister talked of making India a knowledge-based digital economy.
The Government of India is moving towards 100 percent digitisation of government processes to make them more citizen-centric.
Under this, a Digital Public Infrastructure will be developed for the farmers of the country.
ICMR labs will also be made available to private medical colleges and private sector R&D companies to promote health-based research.
A new programme will be started through the Centre of Excellence to promote research and innovation in pharmaceuticals.
District Institutes of Education and Training Centres will be developed for revolutionary change in the training of teachers. A National Digital Library will also be built.
Under the Pradhan Mantri Kaushal Vikas Yojana, skills and training will be given for artificial intelligence, coding, 3D printing Things.

National logistics policy and startups in India:

India recently launched its National Logistics Policy in 2022, which aims to create an integrated and efficient logistics ecosystem in the country.
The policy has several provisions that could benefit startups in the logistics sector.
For instance, it encourages the development of logistics parks and multimodal logistics hubs, which could provide startups with access to better infrastructure and facilities.
It also promotes the use of technology in logistics operations, which could help startups streamline their processes and reduce costs.
The policy also emphasises the importance of skill development and training for the logistics sector, which could benefit startups by providing them with a pool of trained professionals to hire from.

Startups in Defense and Space Sectors:

India’s defence and space sector is a critical area of national importance, and the government has been actively promoting entrepreneurship in this field through various initiatives.
Startups in the defence and space sector can play a significant role in innovation, technology development, and job creation.
One of the key initiatives is the Defense India Startup Challenge (DISC), which aims to encourage startups to come up with innovative solutions to meet the requirements of the defence sector.
- Under the DISC program, startups can get funding, mentoring, and other support from the government to develop their products and services.
The government has also launched the Space Entrepreneurship and Enterprise Development (SEED) program to support startups in the space sector.
- The program provides funding and other support to startups working on space-related technologies and applications.
In addition, the government has established a Defense Innovation Fund (DIF) to provide funding and other support to startups working on innovative solutions in the defence sector.
- The fund aims to promote research and development in critical technology areas such as artificial intelligence, robotics, and autonomous systems.
Several startups have already made significant progress in the defence and space sector in India.
- For instance, AgniKul Cosmos, a Chennai-based startup, is working on developing low-cost launch vehicles for small satellites.
- Another startup, Tonbo Imaging, is working on developing advanced imaging and sensing technologies for defence and security applications.

Chapter 2: Startup India Action Plan

Introduction:

From about 500 startups in 2016 to over 92,000 recognised startups in February 2023, India’s startup ecosystem growth story has become a globally renowned case of a structured development and evolution of an ecosystem and community.
In 2023, India has at least one recognised startup in every State and UT spread across over 660 districts and diversified in more than 55 sectors.
About 47% of recognised startups have at least one woman director which highlights the inclusiveness and diversity of the Indian startup ecosystem.

Differentiated approach:

Recognising the potential and importance of the startup ecosystem in the economic growth of the country, the Hon’ble Prime Minister on 16 January 2016 unveiled the Startup India Action Plan 2016.
The complex opportunity of the Indian startup ecosystem lies in the standard lifecycle of a startup; ideation, validation, early traction and scaling Each of these stages has a different set of stakeholders or beneficiaries.
Accordingly, the key pillars of Startup India Action Plan were envisaged to be executed in a phased manner with differentiated approaches.
The Action Plan comprises 19 action items spanning across areas such as ‘Simplification and handholding’, ‘Funding support and incentives’, and ‘Industry-academia partnership and incubation’.
Key features of the action plan includes,
Simplification and Handholding: The government pledged to simplify the regulatory environment for startups, reducing the time and cost of compliance with a startup hub to provide a single-point contact for startups to access information on various schemes and services.
Funding Support and Incentives: A fund with an initial corpus of INR 2,500 crore was set up to provide funding support for startups.
Industry-Academia Partnership and Incubation: The government promoted industry-academia partnerships to foster innovation and support the creation of incubation centres to provide physical infrastructure, mentorship, and other support services for startups.
Innovation and Entrepreneurship Development Programs: The government created entrepreneurship development programs to help entrepreneurs build the skills and knowledge they need to succeed.
Intellectual Property Rights (IPR) Protection: The government provides a legal support system to help startups protect their intellectual property rights, including patents, trademarks, and copyrights.

Chapter 3: Startup20 Empowerment Group

Introduction:

Startup20 aspires to create a global narrative for supporting startups and enabling synergies between start-ups, corporates, investors, innovation agencies and other key ecosystem stakeholders.
A two-day inception meeting of the Startup 20 Engagement Group was held in Hyderabad, on January 28-29, 2023.
Startup 20 is an important group of the G20 to generate more entrepreneurs from developing nations.
The group will also bridge the knowledge gap between the startup ecosystems of G20 member countries and emerging economies through partnerships with enablers such as incubators and government agencies.
The Startup 20 summit will be held in Gurugram in the month of July 2023.
The opportunity comes at a time when India’s startup ecosystem has grown to become the world’s third largest, with over 92000 startups, 108 Unicorns, and more than USD 40 billion in investment in 2022.
During Turkey’s presidency of the G20 in 2015, there was a Task Force on Small and Medium Enterprises (SME) and Entrepreneurship. Subsequently, in Japan (2019), there was the Young Entrepreneurs’ Alliance; in Italy (2021), the Innovation League; and in Indonesia (2022), the Digital Innovation Network, which is being continued during India’s presidency.

Objectives of Startup20:

The overarching goal of Startup20 is to propose a policy framework that achieves two objectives simultaneously:
- (a) harmonisation of global startup ecosystems to facilitate their collaboration, and
- (b) doing so without compromising the national ecosystems’ freedom to grow in whatever way they see fit.
To accomplish its goals, Startup20 has formed three Task Forces that focus on critical areas vital to the development of a thriving startup ecosystem.
Foundation and Alliances, Finance, and Inclusion and Sustainability are among the Task Forces.
The Foundation and Alliances Task Force seeks to foster a global community of knowledge sharing among startup ecosystems, as well as to bridge the knowledge gap between G20 member countries, startup ecosystems, and emerging economies.
The Finances Task Force aims to increase access to capital for early-stage startups by providing financing and investment platforms tailored to their needs.
- This Task Force is primarily responsible for bringing stability to startup investments at the global, regional, and national levels, identifying triggers that lead to investment fluctuations and minimising such risks for startups, mitigating funding imbalances in critical sectors such as agriculture, healthcare, and climate resilience, developing congruence between societal, corporate, and areas of global interest to develop equal funding opportunities.

The Inclusion and Sustainability Task Force seeks to create equal opportunities for startup founders regardless of gender, race, class, or creed, as well as to create a conducive environment for startups building inclusive communities to drive equality and global economic growth.
Objectives of this task force include,
- Increase support for women-led startups and organisations
- Promote startups working on making communities more inclusive
- Enable more investors to invest responsibly in startups built upon sustainable practices
- Encourage mentorship support to the startup ecosystems of the G20 member countries and emerging economies
- Promote startups working on SDGs in areas of global interest

Conclusion:

As the world continues to face economic and technological challenges, startups and entrepreneurship have a crucial role to play in driving growth and innovation. India has a thriving startup ecosystem with a large pool of talented entrepreneurs and investors, therefore Startup20 is also looking at ways to showcase the most successful startups to the world and move in a direction where these startups could set an example around the globe.

Chapter 4: Agri Startups

Introduction:

Agri startups shall play a critical role in making India a knowledge-based and technology-driven economy.
Due to a very unique agricultural ecosystem, there are vast potential and ample opportunities for the development of agri-startups.
India’s arable land area of 156,06 million hectares (2019) is the world’s second-largest after the United States.
It has an incredible diversity of climate and soil types (15 agro-climatic zones, 8 major soil types), making it suitable for growing a wide range of field crops, fruits, vegetables, and so on.
India is currently the world’s largest producer of milk, pulses, millets, and jute, as well as the world’s second-largest producer of rice, wheat, and fruits and vegetables.
India has recently emerged as a leading exporter of agricultural and livestock products.
However, the agricultural sector is also lacking several complex problems and challenges.
- The shrinking size of operational landholdings is a major source of concern, as small landholdings raise transaction costs, making it difficult to adapt to several modern technologies.
- It also becomes difficult to use inputs and natural resources efficiently, many farmers do not have easy access to timely information about sod, weather, markets, advisories, and other topics.
- In general, such issues result in higher costs of cultivation, wastage of resources, crop losses and a smaller scale of production.
Agri-startups strive to provide solutions through innovations, technology interventions or business models specific to the needs of farmers mostly on a real-time basis.
As a result of the Government of India’s ongoing efforts, our country now has 3,000 agri-startups operating in various agricultural fields and allied sectors.

Agri Startups:

Startup India Action Plan 2016 resulted in a massive increase in the creation of startups across almost every industry, including agriculture.
In terms of geographical distribution, nearly 60% of agri-startups are based primarily in Tier l and II cities in a few states.
Agri-startups are further classified based on their focus areas, such as agri-tech, animal husbandry, precision farming, organic agriculture, mechanics, advisories, etc.
Agri startups typically operate at one or more stages of the agricultural value chain, and on this basis have been classified into seven broad categories:
- providing output market linkages; facilitating input supply; enabling mechanisation and irrigation; offering a financial solution (credit and insurance); helping quality maintenance and traceability; post-harvest management; logistic services (warehousing and cold chains); and supporting animal husbandry activities.
These startups provide solutions to farmers by utilising various types of innovations and technologies. They create products and/or services to improve efficiency at various stages of the value chain, such as infrastructure farm automation, precision agriculture, input delivery, advisory market linkages, and so on.
In recent years, some notable business models in the agricultural space have emerged, including the ‘farm to fork’ supply chain model, loT (Internet of Things) or big data-led innovation model, and the upstream marketplace model.

Policies and Promotions:

The Government of India has launched several initiatives to facilitate and promote agri-startups, with the goal of creating a robust ecosystem for the creation and development of agri-startups.
The Agri-Business Incubator (ABIs) Centres were established in various parts of the country, primarily in R&D institutions, in 2015-16.
- ABIs identify and mobilise emerging entrepreneurs, facilitating their growth through a variety of services including shared facilities (workspaces, infrastructure, etc.) and equipment, business development, technology, finance, mentoring, and networking.
In India, there are over 100 agri-focused incubators, most of which are housed in academic and research institutions such as the Indian Council of Agricultural Research (ICAR) and agricultural universities, Startup India, the Atal Innovation Mission, the Department of Science and Technology (DST), and the Ministry of Agriculture and Farmers Welfare also support these incubators.
In 2019-20, the Department of Agriculture, Cooperation, and Farmers Welfare has added a new component called the ‘Innovation and Agri-Entrepreneurship Department’ to its flagship scheme. the ‘Rashtriya Krishi Vikas Yojana’ (RKVY-RAFTAAR).
- Under this programme, a selected startup is eligible for maximum financial assistance of Rs. 5 lakh at the ideal pre-seed stage and a maximum financial assistance of Rs. 25 lakh at the seed stage.
The Union Ministry of Agriculture and Farmers Welfare hosts an annual event called ‘Agri-Hackathon,’ where agri-startups can provide viable and innovative solutions to identified challenges and problems.
As the apex body of agricultural R&D, ICAR has taken the lead by establishing 50 Agri-Business incubators in institutes across the country.
ICAR-ABIs, which were launched under the National Agriculture Innovation Fund project (2016-17), provide technical support and incubation services to startups providing solutions in various fields of agriculture and allied sectors.
The Department of Science and Technology has set up 25 Technology Innovation Hubs (TIH) in premier institutes of national importance across the country.
Since 2016, the DST has been implementing an umbrella programme called NIDHI (National Initiative for Developing and Harnessing Innovations) to promote S&T-based entrepreneurship and startup ecosystems in the country.
- NIDHI operates through its various components which are designed to support ideators and innovators from the beginning of their journey and link them to the entire market value chain.
- For example, NIDHI-PRAYAS provides technical and financial support to innovators and startups from the idea stage to the prototype stage.

Recent policies:

Engagement of agri-tech startups and companies in public-private partnerships was announced for the Union Budget 2022-23 to deliver the latest technology education to farmers and aid in implementation.
- Other policies and government-sponsored funds for agri-tech startups in drones and farming as a service were also announced.
NABARD is facilitating a fund with blended capital raised through a co-investment model to finance agri-tech startups and rural farming enterprises. This scheme provides funding to startups that support food producer organisations, farm rental services, and technology incorporation.
The Government announced an agricultural-focused accelerator fund in the current Budget (2023-24) to encourage agri-tech startups in rural areas of the country.
- The Fund is aimed at building innovative and effective agri-tech solutions for farmers so as to improve access to market linkages and yields. It will also introduce cutting-edge technology to transform agricultural practices and boost productivity and profitability.
According to the Economic Survey (2022-23), agri-tech startups have raised approximately Rs. 6600 crore from private equity investors over the last four years, representing a growth rate of more than 50% per year.

Chapter 5: Women Entrepreneurship in MSME Sector

Introduction:

According to the Registrar General of India, the work participation rate for women stands at 25 percent which is one of the lowest in the world.
Emerging reports show a growing decline in women’s participation in the workforce.
Frequent reports indicate a lack of safe and quality childcare support a major contributing reason for this decline.
In addition to this, there is a lack of infrastructural facilities for women at workplaces e,g. proper crèche facilities and their maintenance with decent infrastructure and other resources needed for the same.
The Report of the Expert Committee on Micro, Small and Medium Enterprises (2019), constituted by the Reserve Bank of India, has identified a lack of access to credit as one of the major constraints faced by the MSME Sector.
A 2022 report by the International Finance Corporation (IFC) has identified the lack of access to credit as an important constraint being faced by women entrepreneurs in India.

Women in MSME Sector:

The MSME sector offers multiple opportunities to empower women by promoting entrepreneurship and plays a crucial role in the process of economic and social development through value addition, employment generation, equitable distribution of income, and removal of regional disparities.
Women-owned enterprises account for approximately 18.67% of the total MSMEs registered on the Udyam Registration Portal, over the last three years.
Similarly, the share of women employed by the MSMEs registered on the Udyam portal, in around two and a half years, is 23.59% out of the total employment by the MSME registered units during this period.
The Ministry of MSME is continuously making efforts to encourage women’s empowerment through various interventions.
- The Public Procurement Policy for Micro and Small Entrepreneurs Order, 2012 (as amended in 2018), mandates that 3% of the total annual procurement by Central Ministries/ Departments/CPSEs shall be from women-led Micro and Small Enterprises (MSEs).
- The Ministry has launched the National Scheduled Caste Scheduled Tribe Hub, to promote inclusivity and entrepreneurship.
- Under the Prime Minister’s Employment Generation Programme (PMEGP), 2.59 lakh women entrepreneurs out of a total 8.37 lakh entrepreneurs have been provided credit support with the subsidy for setting up new micro-enterprises, thereby generating employment opportunities, primarily in rural areas.
Khadi and Village Industries Commission (KV1C), has engaged 3.99 lakh women artisans (80%), out of a total of 4.97 lakh artisans in the country, under its Khadi Programme.
In addition, KVIC, through its various skill development training programmes in disciplines like – Beekeeping, Pottery, Leather Goods, Fruits and Vegetable Processing, Bakery courses, Tailoring and Embroidery, Soap and Detergent making, Beautician course, etc., has been skilling women across the country.
- During the last six years, a total of 1.81 lakh women have been skilled through these programmes.
In the coastal states of the country, Coir Board, under different schemes, imparts training to women workers on manufacturing quality coir products, thereby creating employment opportunities.

Credit Facilitation:

Initiatives for women-led enterprises: Under the Credit Guarantee Scheme Fund Trust for Micro & Small Enterprises (CGTMSE), to support Women Entrepreneurs, with effect from 1 December 2022, the concession of 10% in guarantee fee (over the normal rate) and enhanced guarantee coverage of 85% (against 75% in other cases) has been introduced in respect of loans given to women entrepreneurs.
Through the Credit Guarantee Scheme for Micro & Small Enterprises, since its inception in 2000, an amount of Rs. 53,080 crore has been guaranteed in respect of loans availed by 13.29 lakh accounts of women-led MSMEs.
Artisan-Based Cluster Development: Under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), a special focus has been given to providing sustainable livelihood to artisans through the formation of manufacturing collectives in the traditional sector.
Apart from the above, Schemes of other Ministries, like Pradhan Mantri Mudra Yojana (PMMY) and Stand Up India, etc., help women set up their own enterprises. The Pradhan Mantri Kaushal Vikas Yojana provides opportunities for training and capacity building of prospective/existing women entrepreneurs.

Chapter 6: Opportunities for MSMEs in ‘Amrit Kaal’

Introduction:

The Amrit Kaal or post-Covid-19 era is expected to bring new opportunities
for the MSMEs in India. With the government’s focus on economic revival and growth, the MSMEs are expected to play a crucial role in driving growth and creating employment opportunities.
Also, the MSMEs can leverage the Amrit Kaal by exploring new markets, embracing digital technologies, and supporting key sectors such as healthcare and renewable energy.
The Government has launched several schemes to support the MSMEs in exporting their products and services and to encourage them to adopt digital technologies.

Scope and Potential in Amrit Kaal:

Some of the key opportunities for the MSMEs in India’s Amrit Kaal are:
Digital Transformation: The Covid-19 Pandemic has accelerated the adoption of digital technologies across industries, and the MSMEs in India need to embrace this change to remain competitive.
- Also, MSMEs can leverage digital technologies to improve their operations, reach new customers, and explore new markets.
Export Opportunities: The Export Promotion Capital Goods (EPCG) scheme and the Merchandise Exports from India Scheme (MEIS) are launched to support MSMEs in exporting their products and services. The MSMEs can leverage these schemes to explore new markets and increase their revenues.
Infrastructure Development: The Government of India has announced several initiatives, such as the National Infrastructure Pipeline and the Atmanirbhar Bharat Abhiyan, to boost infrastructure development in the country.
Healthcare Sector: The Covid-19 pandemic has highlighted the importance of the healthcare sector, and the MSMEs in India can leverage this opportunity by providing goods and services to support the healthcare industry. The MSMEs can further explore opportunities in the areas such as medical devices, personal protective equipment (PPE), and healthcare IT solutions.
Green Energy: The MSMEs can play a significant role in this sector by providing goods and services to support the renewable energy industry. MSMEs can explore opportunities in areas such as solar energy, wind energy, and energy storage solutions,
MSMEs can benefit from increased availability of funding and support from various sources such as banks, venture capitalists, and government schemes. With better access to capital and resources, MSMEs can make investments in innovation and growth, thus expanding their reach and impact.
The Indian MSMEs have several opportunities in the Amrit Kaal, which is 2023 and beyond, including digital transformation, sustainable products and services, catering to the middle class, ‘Make in India: and increased access to funding and support.

Government schemes:

The Government of India has launched several flagship schemes to boost the growth and development of the Micro, Small, and Medium Enterprises (MSMEs) sector. Some of the key schemes are:
Prime Minister’s Employment Generation Programme (PMEGP): This is a credit-linked subsidy scheme that aims to promote self-employment and entrepreneurship by providing financial assistance to startups and new enterprises in the MSME sector.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): This scheme provides collateral-free credit to the M5MEs up to a certain limit. Furthermore, the scheme aims to encourage banks and financial institutions to provide lending to the MSMEs, thereby increasing their access to credit.
Micro and Small Enterprises Cluster Development Programme (MSE-CDP): This scheme aims to promote the development of the MSME clusters by providing support for infrastructure development, technology upgradation, and market access.
Technology Upgradation Fund Scheme (TUFS): This scheme provides financial assistance for the technology upgradation and modernization of the MSMEs in the textile and jute sectors.
Digital MSME Scheme: This scheme aims to encourage the adoption of digital technologies by the MSMEs by providing support for the development of digital infrastructure, capacity building, and digital marketing.
National Manufacturing Competitiveness Programme (NMCP): This scheme aims to enhance the competitiveness of the manufacturing sector, including the MSMEs, by providing support for technology upgradation, quality certification, marketing assistance, and skill development.
National Skill Development Corporation (NSDC): This scheme aims to provide skill development training to the fV1S/VIE workforce so as to enhance their employability and productivity.

MSME and Defence Manufacturing:

The defence manufacturing sector in India is a significant opportunity for MSMEs to grow and expand their businesses.
The Government of India has been focusing on indigenization and self-reliance in the defence sector, and has launched several initiatives to promote the participation of MSMEs in defence manufacturing.
Some of the opportunities for MSMEs in defence manufacturing include:
Offset Policy: Under the Offset Policy, foreign firms that win defence contracts in India must invest a certain percentage of the contract value in India’s defence manufacturing sector. This opens up significant opportunities for MSMEs to collaborate with foreign firms and participate in defence manufacturing.
Defence Procurement Procedure (DPP): The DPP encourages the participation of the MS1VIEs in defence manufacturing by providing them with preference in procurement, setting aside certain categories of products for the MSMEs, and relaxing the eligibility criteria for participation in tenders.
Innovation for Defence Excellence (iDEX): The iDEX initiative promotes innovation and indigenization in defence manufacturing by providing funding support, mentorship, and incubation facilities to MSMEs and startups working in the defence sector.
Defence Investor Cell (DIC): The DIC is a dedicated cell under the Department of Defence Production that assists and supports the MSMEs interested in making investments in the defence manufacturing sector.
Defence Industrial Corridors (DICs): The Government of India has identified six regions across the country as DICs, which are aimed at promoting the development of defence manufacturing clusters. The MSMEs can take advantage of these clusters to access infrastructure, technology, and market linkages.

FDI Advantages for Indian MSMEs:

Foreign Direct Investment (FDI) can provide several benefits to the Indian MSMEs including:
Access to Capital: FDI can provide Indian MSMEs with access to capital from foreign investors, which can be used to fund their growth and expansion plans. This can help MSMEs in overcoming the challenges of limited access to credit and high-interest rates in the domestic market.
Technology Transfer: FDI can also provide Indian MSMEs with access to foreign technologies and processes, allowing them to improve the quality and efficiency of their products. This can help Indian MSMEs become more competitive in the domestic and international markets.
Market Access: FDI can provide Indian MSMEs with access to new markets and customers, both domestically and internationally. This can assist Indian MSMEs in increasing their customer base and revenue.
Management Expertise: FDI can also bring in foreign management expertise and best practices, which can help Indian MSMEs improve their operations and management practices. This can help the Indian MSMEs become more efficient and productive.
Brand Building: FDI can also help Indian MSMEs build their brand image and reputation by associating with well-known foreign brands. This can help Indian MSMEs increase their visibility and credibility in the domestic and international markets.
Employment Generation: FDI can also help the Indian MSMEs create new job opportunities, both directly and indirectly, by supporting their growth and expansion plans. This can help in addressing the country’s unemployment problem.

Alternate Finance Opportunities:

Among the most common challenges faced by MSMEs, accessing finance from traditional sources is regarded as one of the most significant challenges faced by them.
However, there are several alternate finance opportunities available to these companies. These alternate finance opportunities are getting a great push from Government agencies and a greater pull from the MSME sector itself. This alternate finance includes:
- Non-Banking Financial Companies (NBFCs): NBFCs offer loans, lines of credit, and factoring services to MSMEs. NBFCs have more flexible lending criteria than banks and can make loans more quickly.
- Peer-to-Peer (P2P) Lending: P2P lending platforms connect MSME borrowers directly with individual lenders through an online platform. P2P lending platforms can offer lower interest rates and more flexible loan terms than traditional financing sources.
- Trade Credit: Trade credit is a form of financing where suppliers provide goods or services to these companies or credit. This can assist the MSMEs in better management of their cash flow and working capital management.
- Angel Investors and Venture Capitalists: Angel investors and venture capitalists provide funding to the MSMEs in exchange for equity in the company. They can also provide strategic advice and mentorship to the MSMEs to help them grow and expand their businesses.
- Crowdfunding: Crowdfunding platforms enable micro and small enterprises to raise funds from a large number of individual investors through an online platform.

Chapter 7: Startups-Reaching last mile

Introduction:

Entrepreneurship and innovation are essential drivers of economic growth and development. India, like many other countries, has recognised the importance of promoting entrepreneurship and innovation, and has taken several initiatives in this direction.
The Startup India initiative has three main components: simplification and handholding, funding support and incentives, and industry-academia partnership and incubation.
Under the simplification and handholding component, the government has simplified the process of starting a business in India by reducing the time and cost required to start a business. The government has also launched an online portal for startups.
The funding support and incentives component provides various incentives for startups, including tax benefits, patent registration, and funding support.
The industry-academia partnership and incubation component focuses on creating a network of incubators and accelerators across the country, which can provide mentoring, networking, and funding support to startups.

Image Source: Yojana

Impact on the Indian Economy:

The Startup India initiative has had a significant impact on the Indian economy, particularly in terms of job creation and economic growth.
According to a report by the National Association of Software and Services Companies (NASSCOM), the Indian startup ecosystem is expected to create over 500,000 new jobs by 2025.
The initiative has also attracted significant foreign investment, with the total funding raised by Indian startups increasing from $3.9 billion in 2014 to $14.5 billion in 2019.
The initiative has also encouraged the growth of innovation and entrepreneurship in India.
According to the Global Innovation Index, India’s rank in innovation has improved from 81st in 2015 to 48th in 2021.
The initiative has also encouraged the growth of startups in various sectors, including technology, healthcare, and agriculture.

Challenges and Limitations:

Raising capital is a major challenge for startups in India. Investors are often cautious and tend to invest in established companies rather than startups.
Startups in India struggle to attract and retain talent due to competition from established companies and the lack of skilled workers.
Indian startups must navigate a complex regulatory environment, which can be time-consuming and costly.
Poor infrastructure, such as inadequate transportation and power supply, can hinder the growth of startups in India.
Indian society has traditionally placed a strong emphasis on job security and stability, which can make it challenging for startups to attract employees and customers.
While India has a large population, the purchasing power of the majority of the population is low, limiting the potential market for many startups.
Many startups in India lack access to experienced mentors who can provide guidance and support.
Despite these challenges, startups in India have shown remarkable resilience and are finding innovative ways to overcome these obstacles.

Chapter 8: Antyodaya and Mass Media

Introduction:

Antyodaya refers to the concept of uplifting the last person in society.
Antyodaya was a concept that was based on the philosophy of integral humanism. While it was not coined by Deen Dayal Upadhyay, the proliferation of its popularity had him playing an integral role. He stressed Antyodaya to target the extreme poverty that lingered in India during and after the independence.
The concept of Antyodaya emphasises the need for social and economic development to reach the poorest and most marginalised people in society. In other words, it is a philosophy that emphasises the welfare of the weakest section of society.
Mass media, on the other hand, refers to the means of communication that reaches a large number of people at the same time. It includes newspapers, magazines, radio, television, and the Internet. The mass media plays an important role in shaping public opinion, educating the masses, and disseminating information to the masses.

Significance of Mass Media:

The relationship between Antyodaya and mass media is quite significant. The mass media can be an effective tool for promoting the concept of Antyodaya. The media can create awareness about the problems faced by the poor and marginalised section of society, and highlight the need for their upliftment.
The media can also bring to light the initiatives taken by the government and non-governmental organisations to promote the welfare of the poorest sections of society.
One of the key roles of mass media in promoting Antyodaya is to create awareness among the masses. Through various media platforms, the message of Antyodaya can be communicated to a large audience.
The media can highlight the need for social and economic development that benefits the poorest and most marginalised sections of society.
The media can also play a crucial role in educating people about the issues faced by the poor and marginalised sections of society. By highlighting their problems, the media can sensitise people to their plight and encourage them to take action to support their cause.
It can act as a watchdog and hold those in power accountable for their actions. By exposing corruption and malpractice, the media can create pressure on the government and other organisations to take action to promote the welfare of the poorest sections of society.

Related Links
Atal Innovation Mission	Start-Up India: A Detailed Insight
Make In India	Agri Udaan Programme
National Agriculture Market (NAM)	Swachh Bharat Abhiyan Essay

Gist of Yojana April 2023: Startup India

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