‘Make in India’ incentives for Manufacturing Startups

The opening Page of Make in India greets with the words “To facilitate investment, foster innovation and enhance Skill development” These words signify the mass inclusion of Startups, the Government intends to do in line with Main Stream Market Leaders. With India emerging as the next most important hub with global dailies of China. This is the right time to make maximum out of ‘Make in India’ incentives for Manufacturing startups.

‘Make in India’ intends to move towards a manufacturing supported Economy.


  1. Main Area of Focus-The initiative focuses on 25 sectors, from Employment Intensive to Capital Goods Industries, Industries with Strategical Significance to Small, Medium, and Public Sector Enterprises thus identifying inclusive information technology, pharmaceutical, electronics, textiles, leather, shipping, Automobile, gems, Aerospace Companies in Market.
  2. Huge Regards to Intellectual Property– Make in India intends to protect intellectual property rights which are directly correlated with protecting the bright creations of young minds and hence foster innovations brought forward by Young Talent of India. Initiatives like faster and easy IP rights filing.
  3. Skill development & thrust on education– The policy further provides for new youth-focused programs and institutions dedicated to developing specialized skills as ‘Make in India’ cannot complete without Skill India. Specific sectors are asked to access Industrial Training Institutes (ITIs) located across the country to train manpower locally as per their needs. National Skill Development Agency (NSDA) initiated work on creating a labor market information system which would help industry sourcing their manpower requirement. Hence, a better-trained worker for you and an employment opportunity for him.
  4. Ease of Business and Transparency– Under the scheme, the government has introduced new de-licensing and deregulation measures in order to reduce complexity, delays and to make system more transparent regards to doing business.

The government also has simplified regulatory environment by Introducing the feature of applying for Industrial License online on a 24×7 basis through an e-Biz portal.

The process of clearances by the central and state authorities is also to be progressively web-enabled with a strict timeline for all clearances and integrating services of Central government departments and ministries with the e-Biz, a single window IT platform for clearance of services ensure lesser hassles and no unwanted delays.

  1. Industry Specific Policies: Government is also on the steps to create Policies targeting specific Industries, as a result of which area based incentives (SEZs), state based incentives as Make in UP, and incentives for the purpose of export under foreign trade policy are helping Entrepreneurs to Bud.


  1. Ease of Doing Business:– A unique identification number has been issued to all firms and Instead of earlier 17, only three forms exists now. Moreover, the minimum capital requirement has been done away with along with the requirement of Common Seal.
  2. E-Biz Portal: The Government to Business (G2B) portal has been set up to serve as a single window for services to investors as well as to address any needs through the entire lifecycle of Business.
    The process of applying for an industrial license (IL) and industrial entrepreneur memorandum (IEM) can now be applied on a 24×7 basis at the E-Biz website. Other services of the central government are also being integrated with the portal.
  3. Environmental and forest clearances: Online submission of applications for the environment, coastal regulation zone (CRZ), and forest clearances and decentralization of decision making.
    The requirement for environment clearance has been done away with for projects such as the construction of industrial sheds which house plant and machinery, educational institutions and hostels.
  4. Infrastructure: The government is seeking to improve the physical infrastructure in the country through the PPP mode of investment. Investment in ports and airports has been increased. The development of dedicated freight corridors is being done and these corridors are expected to house industrial clusters and smart cities.
    National Investment & Manufacturing Zone are Identified and acquisition of many areas has been done or is underway. The central government will be responsible for bearing the cost of master planning, improving/providing external physical infrastructure linkages including rail, road, ports, airports, and telecom, providing institutional infrastructure for productivity, skill development and the promotion of domestic and global investments.
  5. Investment Regulations: A Liberalised Investment Policy in the following manner
  • 100% FDI under automatic route for construction, operation and maintenance of specified rail infrastructure projects.
  • FDI cap in Defence raised from 26% to 49%.
    The norms for FDI in the construction development sector are being eased.
  • Liberalization of RBI norms for banks investing in venture capital funds with a focus on SMEs, in consultation with RBI.
  • The liberalization of IRDA guidelines to provide for investments by insurance companies.
  • The inclusion of lending to SMEs in manufacturing as part of priority sector lending.
  • Easier access to bank finance through appropriate bank lending norms.
  1. Labour-sector reforms: Multiple overlapping and inflexible labor laws have been an impediment to the growth of manufacturing sector in India. The new government has initiated a set of labor reform measures such as:
  • Shram Suvidha portal for online registration, the filing of self-certified online returns, computerized labor inspection scheme, online uploading of inspection reports within seventy-two hours and timely redressal of grievances.
  • A Universal Account Number has been launched to ensure portability of Provident Fund accounts for employees.
  • To provide flexibility in working hours and increased intake of apprentices for on the job training, the Apprentices Act, 1961 has been amended. An Apprentice Protsahan Yojana has been initiated for the micro, small and medium enterprises (MSME) sector.
  1. Taxation Reliefs: -Few Tax related reliefs also provided under Make in India by following steps
  • Rollover relief from long term capital gains tax to individuals on sale of residential property in case of re-investment of sale consideration
  • A tax pass-through status for venture capital funds with a focus on SMEs in the manufacturing sector.
  1. Special Provision for Industries Going for Sustainable Growth: -In a way to ensure Green Growth, Following incentives, are provided
    • 5% interest in reimbursement & 10% capital subsidy for the production of equipment/machines/devices for controlling pollution, reducing energy consumption and water conservation.
    • A grant of 25% to SMEs for expenditure incurred on audit subject to a maximum of USD 1538.46
    • A 10% one-time capital subsidy for units practicing zero water discharge.
    • A rebate on water cess for setting up wastewater recycling facilities.
    • Incentives for renewable energy under the existing schemes.
    • An incentive of USD 3076.92 for all buildings which obtain a green rating under the Indian Green Building Council (IGBC) / Leadership in Energy & Environmental Design (LEED) or Green Rating for Integrated Habitat Assessment (GRIHA) systems.

Few Startups Who Make It Big under MAKE IN INDIA.

There are some born with the golden spoon and some achieve it by their hard work. Few startups who emerged as Market Leaders after Make in India are –

  1. Shop Clues- Brought 500 merchants on board across the country. It is also working in collaboration with government bodies to encourage local craftsmen and traders.
  2. Goqii- A Smart wearable fitness band company secured funds worth 13.2 million USD and defeated Xiaomi, Fitbit and Huawei securing top position in Indian Market as per IDC Report on Q2.
  3. Grey Orange Robotics- Company aiming to provide robots to Retail Houses, Consumer Goods and Warehouses in order to Warehouse automation has now expanded its business in Countries considered to be global Leaders in Robotics as Japan, China, and South Asia.
  4. Hike Messanger- Introduced by Soft Bank as a new way to send a text message was able to raise 175million USD in a series D Funding with its Biggest competitor being Whatsapp only with other apps far behind in popularity.
  5. Ather Energy Private Limited- A new way to ride electrical two wheelers has created a huge demand and took International as well as Domestic Buyers by storm thanks to funding it was able to generate.

We Wazzeerians are huge fans of ‘Make in India’ we have helped a good number of startups to incentivize from ‘Make in India’ we would be glad to help you too. Let’s connect!