Module 4:- 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.

Role of Central Govt and State Govt in Promoting Entrepreneurship

Both central and state levels, recognizes the crucial role entrepreneurs play in driving economic growth,
job creation, and innovation. To cultivate a thriving entrepreneurial ecosystem, various initiatives and
schemes are implemented. Let's delve into the key areas where these governments provide support:
Central Government Initiatives:
• Policy Framework: The Ministry of Micro, Small and Medium Enterprises (MSME)
spearheads policy formulation to create a conducive environment for businesses. This includes
simplifying regulations, promoting ease of doing business, and establishing incubation centers.
• Financial Assistance: Schemes like the Mudra Yojana (2015) provide loans to micro and
small enterprises, while the Stand-Up India Scheme (2016) facilitates bank loans for setting
up greenfield ventures, with a focus on promoting women entrepreneurs. Additionally,
initiatives like the Credit Guarantee Fund Trust for Micro and Small Enterprises
(CGTMSE) (2000) offer partial loan guarantees, reducing risk for lenders.
• Skill Development & Training: The Skill India Mission aims to equip youth with industry-
relevant skills to be job-ready or start their own businesses. Initiatives like Pradhan Mantri
Kaushal Vikas Yojana (PMKVY) offer training programs across various sectors.
• Startup Support: The Startup India initiative (2016) fosters a nurturing environment for
startups through self-certification, tax benefits, relaxation in regulations, and easier access to
funding.

Recent Developments:
• Aatmanirbhar Bharat Abhiyan (Self-reliant India Mission) (2020): This program
emphasizes domestic manufacturing and promotes innovation in sectors like pharmaceuticals
and medical devices, creating opportunities for entrepreneurs.
• Fund of Funds for Startups (2016): This initiative provides financial support to venture
capital funds that invest in promising startups.
• Fame-II Scheme (Faster Adoption and Manufacturing of Electric Vehicles): Launched in
2019, this scheme incentivizes production and adoption of electric vehicles, opening doors for
EV-related startups.
State Government Initiatives:

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

 • State-Specific Schemes: Many states offer additional financial support, subsidies, and tax
breaks to entrepreneurs, particularly those focusing on specific sectors or regions.
• Infrastructure Development: State governments invest in infrastructure development like
industrial parks, co-working spaces, and high-speed internet, making it easier for businesses
to establish and operate.
• Regulatory Reforms: States can simplify procedures for obtaining licenses and permits,
reducing the regulatory burden for entrepreneurs.
• Focus on Innovation & Incubation: Many states set up incubation centers and research
parks to foster innovation and provide support to early-stage startups.
Recent Developments:
• Tamil Nadu Startup and Innovation Policy (2021): This policy provides comprehensive
support to startups, including incubation space, funding opportunities, and tax benefits.
• Karnataka Innovation and Entrepreneurship Policy 2021-2027: This policy offers a
single window clearance system for startups, subsidized office space, and mentorship
programs.
• Maharashtra Startup Policy 2018: This policy provides capital grants, tax exemptions, and
incubation space to promote startups in the state.

Export Oriented Units (EOUs)

Export Oriented Units (EOUs) are industrial undertakings established in India to produce
goods or render services primarily for export.
These units are set up to boost exports, generate foreign exchange earnings, and promote
economic growth.

The Directorate General of Foreign Trade (DGFT)

The Directorate General of Foreign Trade (DGFT), an attached office under the Ministry of
Commerce and Industry, plays a pivotal role in regulating and promoting India's foreign trade.

Fiscal and Tax concessions

EOUs are entitled to various fiscal and tax concessions to encourage export-oriented
manufacturing and services. Some of the key fiscal and tax concessions available to EOUs in
India include:
1. Exemption from Customs Duty: EOUs are exempt from payment of customs duty on
imports of capital goods, raw materials, components, consumables, and packing

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

 materials required for manufacturing goods meant for export. This exemption applies
to both domestic procurement and imports.
2. Exemption from Central Excise Duty: EOUs are exempt from payment of central
excise duty on the procurement of raw materials, components, and consumables used
in the manufacture of goods meant for export. They are also exempt from excise duty
on finished goods cleared for export from their premises.
3. Exemption from Service Tax: EOUs are exempt from payment of service tax on
services used for export production or services rendered for export. This includes
services like transportation, warehousing, testing, and quality certification.
4. Income Tax Benefits: EOUs are eligible for income tax benefits under Section 10B of
the Income Tax Act, which provides a deduction of 100% of export profits for a certain
period. The deduction is available for a block of five years in the initial 10 years of
operation, subject to fulfillment of specified conditions.
5. Duty Drawback Scheme: EOUs can claim a refund of customs duties and excise duties
paid on imported inputs used in the manufacture of export products.
6. Simplified Export Procedures: EOUs benefit from simplified export procedures,
including faster customs clearance and documentation processes. This helps in reducing
transaction costs and improving the efficiency of export operations.
7. Permission for Deemed Exports: EOUs are eligible to claim benefits for deemed
exports, where goods manufactured in India are supplied to specified projects or entities
within the country for certain purposes, such as government projects or projects funded
by international organizations.

Importance /Role of Export-Oriented Units (EOUs) in Boosting India's Economy

Export-Oriented Units (EOUs) are a cornerstone of India's strategy to achieve sustained
economic growth and global competitiveness. Here's a breakdown of their key contributions:
• Boosting Exports: EOUs are obligated to export their entire production (with minimal
exceptions), significantly increasing India's export volume and diversification. This
strengthens the country's position in the global trade landscape.
• Enhancing Competitiveness: The government's fiscal and tax concessions, like duty-
free imports and tax exemptions, reduce production costs for EOUs. This allows them
to offer export products at competitive prices in the international market.
• Generating Foreign Exchange: EOUs generate significant foreign exchange earnings
through their export activities. This inflow of foreign currency strengthens India's
balance of payments and contributes to economic stability.
• Attracting Foreign Investment: The EOU framework provides a conducive
environment for foreign companies to establish export-oriented units in India. This
attracts foreign direct investment (FDI), which brings in capital, technology, and
expertise, further boosting the economy.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

 • Job Creation: Setting up and operating EOUs creates employment opportunities across
various sectors, from manufacturing and logistics to IT and services. This contributes
to economic growth and poverty reduction.
• Technological Advancement: EOUs often focus on high-tech products and
manufacturing processes. This encourages technology adoption and innovation within
the Indian economy, leading to increased productivity and competitiveness in the long
run.
• Regional Development: The government might establish EOUs in specific regions to
promote balanced economic development. These units can attract investments and
create jobs in previously underdeveloped areas.
Different Types of Export-Oriented Units (EOUS) in India

Start-up India Scheme

Start-up India is a flagship initiative launched by the Government of India on January 16, 2016, aimed
at fostering a robust start-up ecosystem and transforming India into a hub of innovation and
entrepreneurship.
The initiative is designed to support entrepreneurs by simplifying the process of starting and running a
business, providing financial support, and offering various incentives and schemes. Below is a detailed
overview of the Start-up India initiative.

Objectives of Start-up India

 Foster a Culture of Innovation: Encourage the development of new and innovative business
ideas.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

  Promote Entrepreneurship: Facilitate the establishment of new businesses and foster an
entrepreneurial mindset among the youth.
 Create Jobs: Generate large-scale employment opportunities by supporting start-ups.
 Economic Growth: Contribute to the overall economic development by promoting
entrepreneurship.

Key Features of Start-up India

1. Simplification and Handholding

 Startup India Hub: A single point of contact for start-ups in India, providing guidance,
mentorship, and resources.
 Simplified Compliance: Self-certification and compliance under environmental and labor
laws.
 Startup India Portal: A dedicated online platform offering a wide range of services and
information for start-ups.
 Mobile App: A mobile application to simplify the registration process, track the status of
applications, and access a range of services.
2. Funding Support and Incentives

 Fund of Funds: A Rs. 10,000 crore fund to provide funding support to start-ups via SEBI-
registered Venture Capital funds.
 Credit Guarantee Scheme: To provide credit to start-ups through lending institutions.
3. Tax Exemptions:

 Income Tax Exemption: Start-ups are eligible for a tax holiday for three consecutive years out
of the first ten years after incorporation.
 Capital Gains Tax Exemption: Exemption on capital gains if they are invested in a Fund of
Funds recognized by the government.
 Angel Tax Exemption: Relief for start-ups on investments from angel investors.
4. Industry-Academia Partnership and Incubation

 Atal Innovation Mission (AIM): To promote a culture of innovation and entrepreneurship

through various programs and incubation centers.
 Research Parks: Establishment of research parks to facilitate R&D.
 Incubation Centers: Support for the establishment of new incubators and strengthening of
existing ones.
5. Addressing Regulatory Issues

 Faster Exit for Start-ups: Simplified procedures for start-ups to wind up operations in case of
failure.
 Patent Regime: Fast-tracking of patent applications and 80% rebate on filing patents.
 Public Procurement: Start-ups are exempt from prior experience or turnover requirements in
public procurement processes.

Benefits for Start-ups

 Access to Funding: Easier access to funding through government schemes and funds.
 Tax Benefits: Various tax exemptions and incentives to reduce the financial burden.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

  Regulatory Support: Simplified compliance procedures and easier regulatory frameworks.
 Mentorship and Networking: Access to a network of mentors, industry experts, and
incubators.
 Intellectual Property Support: Assistance with protecting and commercializing intellectual
property.

Impact of Start-up India

 Increased Start-up Activity: Significant growth in the number of start-ups across various
sectors in India.
 Job Creation: Generation of numerous job opportunities, contributing to employment growth.
 Innovation Boost: Enhanced focus on innovation, leading to the development of new products
and services.
 Global Recognition: India emerging as a significant player in the global start-up ecosystem.

Women Entrepreneur
• A woman entrepreneur refers to a female individual who starts, owns, and operates
her business enterprise.
•
• Women entrepreneurs play a significant role in
• Driving economic growth,
• Fostering innovation, and Creating
• Employment opportunities.
Reasons for low women entrepreneurs/Challenges for W.E
Several reasons for the relatively low number of women entrepreneurs:

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

 1. Societal Norms and Expectations: Traditional gender roles and societal norms often
discourage women from pursuing entrepreneurial ventures, especially in male-
dominated industries or sectors.
2. Access to Resources: Women may face challenges in accessing financial resources,
such as capital, loans, or investment opportunities, due to gender bias or discriminatory
practices in the financial sector.
3. Family Responsibilities: Women often shoulder primary caregiving responsibilities
within families, which can limit their time, flexibility, and mobility to pursue
entrepreneurial endeavors.
4. Lack of Role Models and Mentorship: The absence of visible female role models and
mentors in entrepreneurship can deter aspiring women entrepreneurs from entering the
field and seeking guidance and support.
5. Cultural and Institutional Barriers: Cultural and institutional barriers, such as legal
restrictions, lack of access to education and training, and limited networking
opportunities, can hinder women's entrepreneurial aspirations.

Notable Women Entrepreneurs in India

1. Kiran Mazumdar-Shaw: Founder of Biocon, a leading biopharmaceutical company.
2. Falguni Nayar: Founder of Nykaa, a popular beauty and wellness e-commerce platform.
3. Vani Kola: Founder of Kalaari Capital, a venture capital firm.
4. Shahnaz Husain: Founder of Shahnaz Herbals Inc., a leading herbal cosmetics brand.

Prospects or Strategies to Motivate Women Entrepreneurship in India

Despite these challenges, there are significant prospects for women entrepreneurs, and several
strategies can be adopted to motivate and support them.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

 • Education and Skill Development: Providing women with access to entrepreneurship
education, training programs, and skill development initiatives can equip them with the
knowledge, confidence, and competencies needed to start and grow successful
businesses.
• Access to Finance and Resources: Implementing gender-sensitive financial policies,
creating special loan schemes, and establishing venture capital funds targeting women
entrepreneurs can improve their access to financial resources and investment
opportunities. ( Mudra Yojana scheme for women, also known as the Mahila Udhyami
Yojana.)
• Mentorship and Networking: Facilitating mentorship programs, networking events,
and peer support groups can connect aspiring women entrepreneurs with experienced
mentors, role models, and business professionals who can offer guidance, advice, and
encouragement.
• Policy Reforms and Supportive Ecosystem: Implementing supportive policies,
regulations, and initiatives that promote gender equality, address discriminatory
practices, and create a conducive business environment can foster a culture of
entrepreneurship among women.
• Recognition and Visibility: Recognizing and celebrating the achievements of women
entrepreneurs through awards, honors, and media coverage can inspire other women to
pursue entrepreneurial ventures and showcase their contributions to the economy.
• Encouraging Entrepreneurial Culture: Promoting an entrepreneurial culture that
values innovation, risk-taking, and creativity can instill confidence and motivation in
women to pursue their entrepreneurial aspirations.
• Collaboration and Partnerships: Encouraging collaboration and partnerships among
government agencies, non-profit organizations, educational institutions, and private
sector entities can leverage collective efforts and resources to support women
entrepreneurs effectively.

A Brief Overview of Financial Institutions in India

• SIDBI (Small Industries Development Bank of India-1990)
• NABARD (National Bank for Agriculture and Rural Development-1982)
• SIDCO (State Industrial Development Corporation)
• DIC (District Industries Centre- 1970s)
• IDBI (Industrial Development Bank of India-1964)
• IIE (Indian Institute of Entrepreneurship-1993)
SIDBI (Small Industries Development Bank of India-1990)

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

The Small Industries Development Bank of India (SIDBI) is a principal financial institution in
India dedicated to the promotion, financing, and development of the micro, small, and medium
enterprises (MSME) sector. Established in 1990, SIDBI operates under the overall purview of
the Department of Financial Services, Ministry of Finance, Government of India.

Functions and Role

1. Financial Assistance: SIDBI offers tailored financial products like term loans,
working capital financing, and project financing to meet the diverse needs of
MSMEs at various stages of their business lifecycle.
2. Refinancing: Acting as a refinancing agency, SIDBI helps banks and financial
institutions increase their lending to MSMEs by refinancing term loans and working
capital facilities extended to these businesses.
3. Credit Guarantee: SIDBI provides credit guarantee schemes to banks and financial
institutions, reducing their risk when lending to MSMEs. This encourages them to
extend credit to the sector, boosting access to finance.
4. Promotional Initiatives: Through training programs, workshops, and market
linkages, SIDBI fosters entrepreneurship, innovation, and competitiveness among
MSMEs, supporting their growth and development.
5. Venture Capital and Equity Support: SIDBI promotes equity investment and venture
capital financing in MSMEs through its subsidiary, SIDBI Venture Capital Limited
(SVCL), facilitating their expansion and development.
6. Developmental Programs: SIDBI implements various programs to promote MSME
entrepreneurship, sustainability, and inclusivity, covering areas like cluster
development, rural industrialization, and technology upgradation. (For instance, SIDBI
has supported the development of textile clusters in Tamil Nadu, automotive clusters in
Maharashtra, and handicraft clusters in Uttar Pradesh through targeted interventions
aimed at improving production processes, product quality, and market access for
MSMEs within these clusters.)
7. Policy Advocacy: SIDBI engages with policymakers, regulators, and industry
associations to advocate for policy reforms that support MSME growth. It provides
inputs and feedback on policy matters affecting the sector at national and state levels.
Overall, SIDBI's multifaceted approach aims to address the diverse needs and challenges faced
by MSMEs, contributing to their inclusive and sustainable growth, and thereby fostering
economic development in India.

NABARD (National Bank for Agriculture and Rural Development-1982)

• Founded in 1982, NABARD is the apex development bank in India focused on

agriculture and rural development.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

 • NABARD provides credit and financial assistance to agriculture, rural infrastructure,
and allied sectors through a range of lending and investment programs.
• It promotes rural entrepreneurship, sustainable agriculture practices, and rural
livelihood development through various schemes, grants, and technical assistance
programs.
Functions and Role
1. Rural Credit: NABARD provides credit facilities and refinance support to financial
institutions, cooperatives, and rural banks to ensure adequate and timely credit flow to
farmers, rural artisans, and other priority sectors in rural areas. It promotes inclusive
and sustainable agricultural financing by facilitating loans for crop cultivation,
livestock rearing, farm mechanization, and allied activities.
2. Rural Infrastructure Development: NABARD funds and supports the development
of rural infrastructure projects such as irrigation systems, rural roads, bridges,
warehouses, and market yards. It provides financial assistance, technical expertise, and
capacity-building initiatives to state governments, local bodies, and rural development
agencies to improve rural connectivity, access to markets, and storage facilities for
agricultural produce.
3. Institutional Development: NABARD works towards strengthening and capacitating
rural institutions, including cooperative banks, regional rural banks (RRBs), self-help
groups (SHGs), and farmer producer organizations (FPOs). It provides training,
consultancy, and financial assistance to enhance the governance, management, and
operational efficiency of these institutions, thereby promoting financial inclusion and
grassroots empowerment.
4. Agricultural and Rural Research: NABARD supports agricultural and rural research
initiatives aimed at promoting innovation, technology adoption, and sustainable
farming practices. It funds research projects, pilot programs, and knowledge
dissemination activities to address key challenges facing the agricultural sector, such as
water management, soil conservation, organic farming, and climate change adaptation.
5. Rural Development Programs: NABARD implements and supports various rural
development programs and initiatives to address socio-economic disparities, promote
livelihood opportunities, and improve the quality of life in rural areas. These programs
cover areas such as watershed management, sustainable livelihoods, rural
entrepreneurship, women empowerment, and financial literacy.
6. Policy Advocacy and Coordination: NABARD engages with policymakers,
regulators, government agencies, and stakeholders to advocate for policy reforms and
interventions that promote rural development, agricultural sustainability, and inclusive
growth. It provides inputs, recommendations, and technical expertise to inform policy
decisions and ensure alignment with national development goals and priorities.

SIDCO: Small Industries Development Corporation

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development
SIDCO (Small Industries Development Corporation) is a government agency dedicated to the
promotion, development, and support of small-scale industries in a state. Each Indian state has its own
SIDCO with the primary objective of fostering the growth of small-scale industries (SSIs) to boost
economic development, create employment opportunities, and enhance regional industrialization.
Functions of SIDCO

 Infrastructure Development: Industrial Estates: Establishing and managing industrial estates

to provide small businesses with developed land and essential infrastructure like roads, water
supply, power, and communication facilities.
 Common Facility Centers: Creating common facility centers equipped with shared resources
and machinery to reduce operational costs for small industries.
 Financial Assistance: Subsidies and Grants: Offering financial assistance in the form of
subsidies, grants, and incentives to small industries for various projects, modernization, and
technological upgrades.
 Credit Facilitation: Assisting small industries in obtaining credit and loans from financial
institutions at favourable terms.
 Technical Support: Technical Training: Providing technical training programs and workshops
to enhance the skills of entrepreneurs and their workforce.
 Consultancy Services: Offering consultancy services in areas such as project reports,
feasibility studies, and market analysis.
 Marketing Assistance: Exhibitions and Trade Fairs: Organizing exhibitions, trade fairs, and
buyer-seller meets to help small industries showcase their products and connect with potential
customers.
 Marketing Support: Assisting small industries in marketing their products through market
research, advertising, and promotional activities.
 Raw Material Supply:
Procurement and Distribution: Procuring raw materials in bulk and distributing them to small
industries at competitive prices to ensure a steady supply and reduce input costs.
 Cluster Development: Industry Clusters: Promoting cluster development by grouping similar
industries together to benefit from shared infrastructure, resources, and collaborative growth.
 Policy Advocacy: Policy Formulation: Working with state governments to formulate policies
and schemes that support the growth of small-scale industries.
 Regulatory Support: Assisting small industries in navigating regulatory requirements and
compliance.
 Entrepreneurial Development:
Entrepreneurship Development Programs (EDPs): Conducting programs to nurture
entrepreneurial skills among aspiring entrepreneurs and support new ventures.
 Incubation Centers: Setting up incubation centers to provide start-ups with mentorship,
resources, and an environment conducive to growth.

Role of SIDCO

 Economic Development: Industrial Growth: Contributing to the industrial growth of the state
by promoting the establishment and expansion of small-scale industries.
 Balanced Regional Development: Ensuring balanced regional development by setting up
industries in less developed and rural areas.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

  Employment Generation: Job Creation: Creating employment opportunities by supporting
the establishment of new small-scale industries and the expansion of existing ones.
 Skill Development: Enhancing the employability of the workforce through training and skill
development programs.
 Promotion of Innovation: Technological Upgradation: Encouraging innovation and
modernization through financial and technical support for the adoption of new technologies.
 R&D Support: Facilitating research and development activities to improve the
competitiveness of small industries.
 Support for MSMEs: Sustainable Development: Supporting the sustainability and growth of
micro, small, and medium enterprises (MSMEs) by providing a conducive environment for
their operations.
 Capacity Building: Building the capacity of small industries to scale up and compete in both
domestic and international markets.

DIC (District Industries Centre-1978):

• DICs are decentralized agencies operating at the district level to facilitate the
development of small-scale industries (SSIs) and MSMEs in India.
• They serve as a single-window system for providing information, guidance, and support
services to entrepreneurs and small businesses.
• DICs assist in the implementation of government policies and schemes, issuance of
industrial licenses, registration of MSMEs, and resolving operational issues faced by
entrepreneurs at the district level.
Functions and Role
1. Entrepreneurship Development: DICs promote and support entrepreneurship by
providing guidance, training, counseling, and skill development programs to aspiring
entrepreneurs. They assist in the identification of business opportunities, preparation of
project reports, and access to finance and incentives.
2. Facilitation of Industrial Licenses and Clearances: DICs facilitate the process of
obtaining industrial licenses, registrations, and clearances required for setting up and
operating industrial units. They act as a single point of contact for entrepreneurs to
obtain necessary approvals from various government departments and agencies.
3. Industrial Infrastructure Development: DICs contribute to the development of
industrial infrastructure such as industrial estates, parks, and clusters to provide a
conducive environment for industrial growth. They identify suitable land parcels,
develop industrial infrastructure, and allocate plots to industrial units.
4. Implementation of Government Schemes and Incentives: DICs implement various
government schemes, programs, and incentives aimed at promoting industrial
development, employment generation, and economic growth. They provide
information, assistance, and handholding support to entrepreneurs in availing benefits
under these schemes.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

 5. Promotion of MSMEs: DICs focus on the promotion and development of Micro,
Small, and Medium Enterprises (MSMEs) by providing them with preferential
treatment, incentives, and support services. They encourage the adoption of technology,
innovation, and modernization to enhance the competitiveness of MSMEs.
6. Entrepreneurial Support Services: DICs offer a range of support services to
entrepreneurs, including market intelligence, export promotion, quality certification,
technology upgradation, and access to raw materials, machinery, and equipment. They
facilitate linkages between entrepreneurs, suppliers, buyers, and other stakeholders.
7. Monitoring and Evaluation: DICs monitor the performance and progress of industrial
units in their jurisdiction and evaluate the impact of government policies, programs,
and interventions on industrial development. They provide feedback and
recommendations to policymakers for policy formulation and refinement.

What is a single-window system? Explain.

A single window system refers to a streamlined process where entrepreneurs can access all the
necessary information and services required to start and operate a business through a single
platform or agency.
This system aims to simplify the business setup and operation process by reducing the need for
multiple approvals and paperwork from different departments and agencies.
A single window system benefits entrepreneurs:

• Centralized Information: Entrepreneurs can find all the relevant information about
starting a business, including regulations, permits, and processes, in one place.
• Efficiency: It saves time and resources as entrepreneurs do not have to visit multiple
offices or websites to gather information or submit applications.
• Ease of Doing Business: By providing a user-friendly interface and clear guidelines, it
helps in improving the ease of doing business.
• Support and Guidance: Entrepreneurs can receive guidance on the approvals required
for their specific business activities through features like the “Know Your Approvals”
module.
• Real-time Tracking: The system often includes the ability to track the status of
applications and approvals in real-time, allowing for better planning and management.

Industrial Development Bank of India (IDBI)

Established: 1964

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The Industrial Development Bank of India (IDBI) was established to serve as the principal
financial institution for coordinating, supplementing, and promoting the development of
medium and large-scale industries in India.
Functions of IDBI
Developmental Financing:
 Long-term Loans: IDBI provides long-term finance to industries for capital
investments, including the establishment of new units and expansion or modernization
of existing units.
 Project Financing: The bank funds infrastructure projects and development
initiatives that promote industrial growth.
Industrial Promotion:
 Technical Assistance: IDBI offers advisory services for project appraisal, feasibility
studies, and technical evaluations to help industries plan and execute projects
effectively.
 Industrial Growth: It supports the establishment and expansion of industries to boost
industrial production.
Resource Mobilization:
 Raising Funds: IDBI mobilizes resources from domestic and international markets
by issuing bonds, debentures, and other financial instruments.
 Developmental Bonds: The bank issues bonds to finance development projects and
industrial growth.
Sector-Specific Financing:
 Targeted Investments: IDBI provides finance to priority sectors such as agriculture,
infrastructure, and small and medium enterprises (SMEs).
 Special Schemes: It develops and implements financing schemes tailored for specific
industries and sectors.
Financial Intermediation:
 Refinancing: IDBI offers refinancing facilities to financial institutions and banks,
enabling them to lend to industries.
 Investment Banking: The bank engages in investment banking activities, including
underwriting, portfolio management, and advisory services.
Role of IDBI
Economic Development:
 Industrialization: IDBI plays a crucial role in India's industrialization by providing
necessary financial support and infrastructure.
 Economic Growth: It contributes to the overall economic growth by developing
various sectors.
Employment Generation:

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

  Job Creation: IDBI supports industries that generate employment opportunities across
different sectors.
 Skill Development: It enhances workforce skill levels through the industries it
supports.
Infrastructure Development:
 Infrastructure Projects: IDBI finances critical infrastructure projects, such as roads,
ports, and power plants, essential for industrial growth.
 Regional Development: It promotes balanced regional development by financing
projects in underdeveloped areas.
Support for SMEs:
 SME Financing: IDBI provides targeted financial assistance to small and medium
enterprises to foster their growth.
 Capacity Building: It enhances the capacity of SMEs to compete in the market
through financial and technical support.

Indian Institute of Entrepreneurship (IIE)

Established: 1993
The Indian Institute of Entrepreneurship (IIE) was established to promote and develop
entrepreneurship in India, with a particular focus on the northeastern region. It aims to
support the creation and growth of new enterprises through training, research, and
consultancy services.
Functions of IIE
Entrepreneurship Development:
 Training Programs: IIE conducts various training programs to develop entrepreneurial
skills among individuals, including aspiring and existing entrepreneurs.
 Workshops and Seminars: The institute organizes workshops, seminars, and
conferences to promote entrepreneurship and share knowledge.
Research and Development:
 Research Studies: IIE conducts research studies on various aspects of
entrepreneurship and small business management, providing valuable insights and
data.
 Policy Advocacy: The institute provides recommendations to policymakers based on
research findings to foster a conducive environment for entrepreneurship.
Incubation and Mentorship:
 Business Incubation: IIE offers incubation facilities for startups and new ventures,
providing resources, mentorship, and an environment conducive to growth.
 Mentorship Programs: The institute connects entrepreneurs with experienced mentors
who can guide them through their entrepreneurial journey.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

Capacity Building:
 Skill Development: IIE provides skill development programs tailored to the needs of
aspiring and existing entrepreneurs to enhance their capabilities.
 Enterprise Development: It offers support for the development and scaling up of
enterprises through various initiatives.
Consultancy Services:
 Business Consultancy: IIE provides consultancy services in areas such as business
planning, market research, and financial management.
 Technical Assistance: The institute offers technical assistance for project
implementation and management to ensure successful outcomes.
Role of IIE
Promotion of Entrepreneurship:
 Awareness and Advocacy: IIE promotes the culture of entrepreneurship across various
regions, especially in rural and underserved areas.
 Support Ecosystem: The institute builds a supportive ecosystem for entrepreneurs
through partnerships with government, industry, and academia.
Economic Empowerment:
 Job Creation: IIE contributes to job creation by encouraging and supporting new
business ventures.
 Income Generation: The institute enables individuals to generate income through
entrepreneurial activities.
Inclusive Growth:
 Women and Youth Empowerment: IIE focuses on the empowerment of women and
youth through specialized entrepreneurship development programs.
 Regional Development: The institute promotes entrepreneurship in backward and
remote regions to ensure balanced regional development.
Innovation and Competitiveness:
 Fostering Innovation: IIE encourages innovation among entrepreneurs through
training and support.
 Enhancing Competitiveness: The institute helps enterprises enhance their
competitiveness in the market through capacity building and technical support.

Latest Industrial Policy of India

The Landmark 1991 Industrial Policy and A Glimpse into the Potential 2024 Policy.
The 1991 Industrial Policy: Ushering in Liberalization
 India's 1991 Industrial Policy marked a turning point in the country's economic
history.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

  Prior to this, the government heavily controlled industrial activities through a
system of licensing, quotas, and public sector dominance.
 The 1991 policy aimed to dismantle these bureaucratic hurdles and create a
more market-oriented industrial environment.

key features:
• Industrial De-licensing: Many industries were freed from the requirement of
obtaining licenses from the government, allowing for greater operational
freedom for businesses.
• Reduced Public Sector Role: The policy encouraged private sector participation
in various industries, previously reserved for the public sector. This aimed to
enhance efficiency and competitiveness.
• Foreign Investment Promotion: Foreign direct investment (FDI) limits were
increased in various sectors to attract foreign capital, technology, and expertise.
• Export Promotion: Measures were introduced to promote exports and enhance
India's global competitiveness.
• Focus on Infrastructure Development: The policy recognized the importance of
infrastructure development for industrial growth and emphasized investments in
this area.
The 1991 Industrial Policy is widely credited with:
• Boosting Economic Growth: The policy helped accelerate India's economic
growth by fostering private sector investment, innovation, and global
integration.
• Increased Foreign Investment: India witnessed a significant inflow of foreign
direct investment, which provided much-needed capital and technology.
• Enhanced Competitiveness: The reduced regulations and increased competition
led to improvements in efficiency and product quality within Indian industries.

The Potential 2024 Industrial Policy: A Focus on the Future

While the 1991 policy remains the current framework, discussions and media reports
suggest a potential new policy titled "Make in India for the World" or "Draft Industrial
Policy 2023". Here's what we know about this potential policy, which is yet to be
officially announced or implemented:
• Focus on New-Age Industries: The policy might prioritize fostering new and
emerging industries like artificial intelligence, electric vehicles, and renewable
energy.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development

 • Export Promotion: Aligning with the "Make in India for the World" theme, the
policy is likely to emphasize boosting India's manufacturing capabilities for
global exports.
• Carbon Neutrality: Considering India's climate goals, the policy could prioritize
promoting sustainable manufacturing practices and technologies.
• Addressing Industry Challenges: The policy might address existing challenges
faced by established industries to improve their competitiveness in the global
market.
The Road Ahead
If implemented, the potential 2024 Industrial Policy could significantly impact the
direction of industrial development in India. It might pave the way for:
• Growth of New Industries: India could emerge as a global hub for new-age
industries with the right policy support.
• Increased Exports: Boosting exports can generate foreign exchange, create jobs,
and drive economic growth.
• Sustainable Development: Promoting sustainable practices can help India
achieve its climate goals and ensure long-term industrial growth.
• Enhanced Competitiveness: Addressing challenges faced by existing industries
can ensure they remain competitive in the global market.

Prof. Najassim pasha/AIT/MBA/Entrepreneurship Development