North East Startups- Top Schemes for MSMEs and Entrepreneurs

The North East region of India refers to the easternmost part of the country, comprising eight states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura. Due to its geographical location and historical factors, the region has faced various challenges in terms of infrastructure development, connectivity, economic growth, and social development. In order to promote growth and entrepreneurial talent, the Government of India has launched several programs to promote regional economic development in the North East.

In this post, Compliance Calendar compiles a list of top schemes every entrepreneur and MSME operating or planning to set base in the North East of India should watch out for.

Entrepreneurship in the Northeast - key statistics

• As per DPIIT, there are over 3865 registered startups from the Northeast of India

• The DPIIT report shows, MSMEs have received financial assistance worth over INR 645 crores between 2014-21.

• North eastern states connectivity : Over INR10,000 crores have been spent for developing power infrastructure, especially hydroelectric dams.

• With over 17 airports in the Northeast, all capital and major cities of North Eastern states are being connected by air.

• There are 18 national waterways in the Northeast region. These provide not just internal connectivity between states, but also serve as water routes to neighbouring countries like Bangladesh and Myanmar.

PM-Devine - Top schemes for MSMEs for north eastern region

• The PM Devine scheme, involving an outlay worth INR 6600 crores was approved last year (2022) for projects with impact on infrastructure, social development and livelihood sectors.

•  It aims to fund projects until the year 2025-26 for pillars of the Atmanirbhar Bharat program.

•  A minimum amount of INR 20 crores and a maximum of INR 500 crores would be sanctioned for one scheme, intervention or project.

•  The projects eligible for funding must create tangible socio-economic impact.

North East Venture Fund

• The North East Venture Fund aims to invest in enterprises and provide resources for entrepreneurs by way of capital grants. The objective of the fund is to promote entrepreneurship and to maximise returns.

• NEDFi Venture Capital Limited (NVCL), a wholly owned subsidiary of NEDFi is the managing agency that invests by way of equity, debt and convertible shares.

•  Ministry of Development of North Eastern Region (M-DoNER) and North Eastern Development Finance Corporation Limited (NEDFi) act as the anchor investors

• Investment size ranges between INR 25 lacs to INR10 crores.

Mission Organic Value Chain Development for Northeastern Region

This mission was launched with the aim of developing certified organic produce to link growers with customers. It aims to support Agri-entrepreneurs in their efforts towards the entire value chain consisting of input seeds, certification, collection, marketing, branding etc. Diverse products like Kiwi wine, pickles, fruit candies, herbal tea, packaged spices, black rice products, sauces, fruit juices have been promoted under the scheme.

Agri-Clinics & Agri-Business Centres Scheme

This is a welfare scheme by the Ministry of Agriculture that aims to supplement efforts of agricultural development to farmers. It creates self employment opportunities for a business model of agripreneurs based on local needs, and affordability of the target group of agriculturists.

In order to promote technology upgrade in MSMEs, the state governments in North East provide financial assistance equal to 90% of the cost of machinery, equipment and buildings, up to a maximum of INR10 crores.

North East Special Infrastructure Development Scheme

Under the North East Special Infrastructure Development Scheme (NESIDS), financial assistance is given to businesses engaged in projects that help create physical infrastructure. More than 1600 projects for water supply, power, connectivity to promote tourism; and for projects of social sector for creation of infrastructure for primary and secondary education and health have been granted funds in the past, with over INR 13,000 crores of funds issued.

North East Region Vision 2035

The North Eastern Region Vision 2035, was released last year. The vision aims to transform the region into a vibrant and economically developed region of India by the year 2035.

Some of the key focus areas under the North Eastern Region Vision 2035 include:

• Infrastructure Development: Improving transportation networks, including roads, railways, airports, and waterways, to enhance connectivity within the region and with the rest of the country.

• Power and Energy: Promoting the development of power generation projects, both conventional and renewable, to ensure a reliable and adequate supply of electricity.

• Tourism Development: Tapping into the rich cultural and natural heritage of the region to promote tourism and generate employment opportunities.

• Education and Skill Development: Enhancing educational facilities and promoting skill development programs to empower the youth and improve human resource capabilities.

• Horticulture and Agriculture: Encouraging the development of horticulture and agriculture sectors to increase productivity, income generation, and rural employment.

• Industrial Development: Promoting industrial growth and investment in the region to create job opportunities and boost the economy.

minerals, forest resources, tea, pharmaceuticals, textiles etc., under the India-ASEAN Free Trade, SAARC Free Trade and BIMSTEC agreements (with our neighbouring countries), north eastern trade ports, processing centres services are slated to play a big role.

The North East Entrepreneurship Fellowship

• The North East Entrepreneurship Fellowship, created by NorthEast Leaders Connect in collaboration with the IEF Foundation and YouthNet, aims to nurture entrepreneurship in Northeast India.

• It brings together talented and high-potential entrepreneurs from all eight states of the North East with the one year-long fellowship program providing a space for knowledge sharing and exposure.

• Entrepreneurs can learn from experienced mentors, industry experts, and fellow entrepreneurs, gaining insights and skills that can contribute to their personal and professional development.

• Financial access - Through partnerships and collaborations, the program may offer funding opportunities, access to investors, or assistance in securing financial resources for the entrepreneurs' ventures.

These initiatives and programs aim to address the developmental gaps in the “Ashtalaxmi states” (Vision 2035). The eight North East states in India possess immense entrepreneurial potential. Compliance Calendar aims to promote inclusive entrepreneurship and make hassle free legal compliance available to every startup. If you’re an entrepreneur, connect with our legal and financial experts to access the best advice on doing business in northeast India.