Banks sanctioned INR 25,586 Cr to approximately 1,14,322 beneficiaries under the Stand Up India program
The initiative helps women and socially backward groups like SC and ST categories to start entirely new businesses
It also offers loans to non-individual companies, of which 51% of the control must be held by SC / ST and / or a woman entrepreneur.
Even though questions are being raised about the effectiveness of the disbursement of funds under the Startup India program and the success of the Digital India mission, the Ministry of Finance said on Sunday April 4 that the banks had sanctioned 25,586 INR for about 1 14,322 beneficiaries. as part of the Stand Up India program.
The program, which was introduced on April 5, 2016 and ended over five years, aims to promote entrepreneurship and job creation among women and other marginalized segments – scheduled castes (SC ) and the listed tribes (ST). Under this program, bank loans worth INR 10 Lakh to INR 1 Cr are offered to at least one SC / ST borrower and at least one female borrower per bank branch of planned commercial banks.
The initiative was launched to help women and socially disadvantaged groups start new micro, small and medium enterprises in the trade, manufacturing and service sectors. He claims to have aid 93,094 women entrepreneurs to date, with outstanding loans worth INR 21,200 Cr as of March 23 of this year. About 16,258 SC category entrepreneurs received loans worth INR 3,335.87 Cr and 4,970 ST category entrepreneurs received loans worth INR 1,049 Cr, according to shared data by the Ministry of Finance.
The program, which has been extended until 2025, covers local entrepreneurs over the age of 18 from the aforementioned groups. Stand Up India also offers loans to non-individual companies, where 51% of the shareholding and majority stake is held by this category of entrepreneurs. In addition, borrowers should not be in default with a bank or financial institution.
Women run less than 13% of small businesses
According to a report by the gender research and advocacy organization, Initiative for What Works to Advance Women and Girls in the Economy (IWWAGE), reportIndia was 70th out of a ranking of 77 countries in the Female Entrepreneurship Index, as only seven of India’s 100 entrepreneurs are women. In addition, nearly half of these women go into business out of necessity rather than aspiration.
Meanwhile, the International Finance Corporation (IFC) report on “Financial inclusion of micro, small and medium enterprises (MSMEs) owned by women in India” adds that only 33% of start-ups in India are women, noting that India ranks third among countries reporting a gender gap in business.
According to an IndiaSpend report According to a survey, women entrepreneurs in India find it more difficult to access institutional finance and have little clarity on special programs and initiatives introduced by the government to encourage women entrepreneurs.
The report notes that there are three government loan programs available to small businesses under the Government’s Micro-Unit Development and Refinancing Agency (Mudra) – Shishu, Kishor and Tarun. These offer loans ranging from INR 50K to INR 10 Lakh. The report notes that women are the main beneficiaries (70%) of the Mudra program because it does not require any guarantees.
Has the Modi government done enough to stimulate entrepreneurship?
Besides Stand Up India, the Indian government has also launched several other initiatives to boost entrepreneurship and job creation. The two major initiatives of these departments are the Startup India and Digital India initiatives, which are widely regarded as progressive policies. However, these missions were not able to have the same impact that the government had initially expected, especially due to implementation problems.
According to a Inc42 More special report, the Indian government announced a fund of funds (FoF) with a corpus of INR Cr 10,000 to be disbursed by March 31, 2025, as part of the Start Up India initiative. However, the government has committed to invest 3,798 Cr INR and has only disbursed 10% or 1,050 Cr INR of the FoF, as of March 31, 2020.
Likewise, the Digital India initiative lacked a commitment to protecting individuals’ personal data, our report notes. Initially, the Digital India campaign did not mention anything regarding digital privacy and it was only after the Supreme Court declared privacy to be “our fundamental right granted under Article 21 of the Constitution”, the government has formed a committee under the leadership of Judge BN Srikrishna to draft a bill aimed at securing his digital privacy.
Read more about the failed Indian government policy in the Inc42 Plus report: 6.5 years later, Modi Govt’s promises couldn’t keep startups haunted, industry growth