Modi government's scheme for 1st-time entrepreneurs to create 25L jobs
What's the story
The Indian government recently launched a new initiative for first-time entrepreneurs.
The scheme, announced in the Union Budget 2025-26, is expected to create 25 lakh jobs in the next five years.
Sectors in which jobs are expected to be created include manufacturing, services, and allied agriculture.
The program is an extension of the Stand-Up India scheme and is aimed at financially aiding budding entrepreneurs from underrepresented communities.
Aid details
Financial support and credit access for new entrepreneurs
The new initiative provides term loans of ₹10 lakh to ₹2 crore for greenfield enterprises. This will allow first-time entrepreneurs to avail formal credit from banks.
The government's job creation estimate is dependent on the success of the Stand-Up India scheme, which has already offered 2.5 lakh loans of up to ₹1 crore and created 10 lakh jobs.
Empowerment goals
Scheme aims to foster economic empowerment
The scheme seeks to enhance formal credit access, reduce entry barriers for marginalized entrepreneurs, and encourage economic empowerment.
A key highlight of the initiative is a special program to support five lakh first-time entrepreneurs from women, SC, and ST categories.
"The new scheme will build on the entrepreneurial spirit kindled by the Stand-Up India scheme, leading to greater social empowerment," a senior government official said.
Implementation strategy
Scheme to provide training too
Eligible borrowers will get not only financial assistance but also training and mentoring through specialized agencies.
To ensure a smooth implementation, a credit guarantee mechanism will be offered via the National Credit Guarantee Trustee Company (NCGTC).
This measure is aimed at mitigating risks for lenders and encouraging more financial institutions to extend credit to first-time entrepreneurs.
Long-term benefits
Government's vision for inclusive economic growth
The government expects five lakh new entrepreneurs to benefit from this move in the next five years.
This move is considered key to promoting inclusive economic growth and bolstering India's entrepreneurial ecosystem.
"By providing structured credit and necessary guidance, we expect to see long-term economic benefits and enhanced self-reliance among first-time entrepreneurs," a senior government official said, emphasizing the scheme's impact on India's economy.