The manufacturing sector contributes 17% to the country’s overall GDP of which 45% of the manufacturing sector’s output is contributed by the SME sector alone. The SME sector forms an integral part of the Indian manufacturing sector and enjoyed a sheltered existence with a high tariff on imports, fiscal incentives and a monopoly on the manufacture of certain goods. However, the reform era beginning 1991 opened India to trade agreements with other countries that proved advantageous to organizations that held a monopoly in their respective trades. To help with this and augment the global competitiveness of the Indian micro, small and medium enterprises (MSME), the Government of India in partnership with the MSME ministry launched a set of schemes under the National Manufacturing Competitiveness Programme (NMCP). These schemes which began to be implemented in 2006 aim to give these enterprises a competitive edge to survive in a liberalised economy.
India’s startup ecosystem has seen an exponential rise since the startup culture first took over the country. The country is reported to have been teeming with close to 19,000 technology-enabled startups in the year 2016. Clearly, this number is expected to multiply by manyfold in the coming years. However, most of them fail and shut shop due to operational and financial difficulties. To help address this problem, the Government of India under the leadership of PM Narendra Modi launched the Startup India program on 16 January 2016. The program was launched with a view to promote the growth of startups in India, encourage entrepreneurship and create more jobs, thereby, contributing to the development of the Indian economy.