India is at the forefront of a startup boom and this has picked up a relentless pace since mid-2018. With the BJP government’s stance fostering the startup culture; the Startup India- Standup India action plan has become a blessing for the Indian entrepreneur/ retailer.

A fervor that was unveiled in 2016; most startups today are in the midst of exponential growth with innumerable opportunities. The business, therefore, has boomed and the government policies have boosted the growing startup ecosystem.

For a budding entrepreneur, this is probably the best time for you to kickstart your venture and make it happen.

In the past few years, the government of India has initiated several schemes and programs, with an objective to help startups and give a gentle push to the ‘culture’ of entrepreneurship among Indians. Here are the top five government shop schemes for the retail business.

Also Read: Tips For Better Offers To Give To Customers For Retail Shops

1) Multiplier Grants Scheme (MGS) for IT Research and Development

Started by the Department of Electronics and Information Technology (DeitY), MGS has been meticulously introduced to ‘encourage collaborative R&D between industry and academics/ R&D institutions for the development of products and packages.’

MSME loan for Wholesalers

Valid until March 31st, 2020, the scheme holds a corpus of Rs 36 crore for Startups, incubator/academia/accelerators engaged in electronics and information technology domain.

This is mainly applicable for industries that deal with Artificial Intelligence, Technology, Hardware, Internet of Things, IT Services, Enterprise Software and Analytics.

Also Read: Best Ways To Bring Your Business Online For Retail Shops

2) Credit Guarantee Fund Scheme for Micro and Small Enterprises

Initially launched in the year 2000, the CGMSE scheme was created as a monetary support scheme for micro and small enterprises.

Offering collateral-free credit for both new and existing business units, this scheme is intended to provide a loan of up to Rs ten lakhs without any collateral.

For all those who seek a higher loan, to the tune of Rs ten lakhs scaling up to Rs one crore; these are available on primary security or mortgage of land and the relevant building associated with it. 

These are eligible accounts, covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The asset created through the credit facility, (associated with the business unit) is also considered as security when the loan amount exceeds Rs ten lakhs.

These business loans are financed by various public and private sector banks covered under the scheme.

Also Read: Best Mobile Apps To Manage Trade And Payments For Retail Shops

3) Credit Guarantee Fund Trust for Micro and Small Enterprises

A unique scheme initiated by the government is the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Launched with a view to assist retailers, educational institutes, self-help groups, farmers and SMEs alike; the government has floated this unique scheme to encourage entrepreneurs to take collateral-free loans for starting businesses without the fear of defaulting.

The trust fund has the facility to reimburse the lending institution up to a certain limit, in case the borrower defaults. This scheme attempts at smoothing the credit delivery system, with a guarantee cover up to 85% for loans up to Rs five lakh.

Documents Required

  1. Business Registration Certificate
  2. Bank Account Details
  3. PAN Card details of the business
  4. Aadhaar card
  5. Details of Collateral
  6. Business Plan
  7. MSME Certificate
  8. Income Tax Return for Past 3 years
  9. Project Report
MSME loan for Wholesalers

Also Read: Best Ways To Organically Reach Customers For Retail Shops

4) Raw Material Assistance Scheme

National Small Industries Corporation or NSIC has launched Raw Material Assistance scheme, which aims to assist manufacturers and MSMEs with procuring raw materials, both indigenous & imported.

As per the Government Schemes helps the manufacturer’s to focus on the quality of their products, as they can avail low-interest loans and financial help to get raw materials.

Also Read: Tips On How To Maintain Best Mix Of Stock (Retail-Mobile)

5) Infrastructure Development Scheme

The National Small Industries Corporation (NSIC) has launched this scheme for helping startups in establishing their own offices and infrastructure.

The process will be applicable to only those companies that fall under the official definition of startups, as highlighted by the Ministry of Micro, Small and Medium Enterprises.

The startups unregistered with the Software Technology Parks Of India Scheme can avail office space ranging from 467 sq.ft. to 8,657 sq.ft. To promote this scheme even further, a clause of no lock-in period has also been applied for all industries.

Documents Required

  1. Business Registration Certificate
  2. Bank Account Details
  3. PAN Card details of the business
  4. Aadhaar card
  5. Quotation of Machinery Tools
  6. Business Plan
  7. MSME Certificate
  8. Income Tax Return for Past 3 years
  9. Quotation of Machinery/Tools
  10. Technical Specifications
  11. Quality Certificates (ISO or BIS)

Also Read: Best Practice For Mobile Shops


Micro-units Development and Refinance Agency (MUDRA) is an organization established by the government of India for providing business finance to micro-business units.

The loans under the scheme are given on the pretext of ‘funding the unfunded’. This refers to those companies that are so far awaiting the appropriate funds for their businesses.

Since small companies and startups find it challenging to finance their venture, the government of India has created the concept of low-cost credit for such undertakings.

MUDRA Loans can also be understood as refinanced business loans, approved and disbursed through public sector banks, private sector banks, co-operative societies, small banks, scheduled commercial banks, and rural banks that fall under the scheme.

Documents Required

  1. Business Registration Certificate
  2. Bank Account Details
  3. PAN Card details
  4. Aadhaar card
  5. Quotation of Machinery Tools
  6. Business Plan
  7. MSME Certificate
  8. Income Tax Return for Past 3 years


Indifi identifies the relevant applications to multiple lenders, increasing their chances to secure a loan and creates a choice for lenders to pick the ones they wish to support.

The approach thus makes the loan process smarter by minimizing risks, reducing paperwork and its associated costs while providing a simple and hassle-free experience setting the businesses on the path to growth.

Apply For Retail Business Loans


Is the GST composition scheme better than the regular scheme for retailers?

GST Composition SchemeRegular Scheme
1)Designed for small businesses with an annual turnover below a certain threshold (e.g., INR 1.5 Crore in India).1) Applicable to businesses of all sizes, regardless of turnover
2) Simplified tax compliance with a fixed rate of tax on turnover.2) Allows for the full utilization of input tax credit, enabling businesses to offset taxes paid on inputs against taxes collected on sales.
3) Limited input tax credit availability, meaning taxes paid on inputs cannot be claimed as credit against output tax liability.3) Requires more comprehensive compliance, including filing detailed tax returns and maintaining proper records.
4) Ideal for retailers with relatively lower profit margins and minimal interstate transactions.4) Suited for retailers with substantial turnover, interstate transactions, or those wanting to claim input tax credit to reduce tax liability.
Also Read:- Advantages and Disadvantages of GST in India

What are government schemes available for retailers in India?

Various government schemes cater to retailers in India, including the Pradhan Mantri Mudra Yojana (PMMY), Startup India, Standup India, Pradhan Mantri Rozgar Yojana (PMRY), and the GST Composition Scheme.

What is the Startup India scheme, and how does it support retailers?

Startup India aims to promote entrepreneurship by providing various benefits to startups, including easier compliance, tax exemptions, and access to funding. Retailers with innovative business ideas or technology-driven solutions can avail of these benefits.

Are there any specific schemes for rural retailers in India?

Yes, various government schemes target rural retailers, including the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), which provides support for rural micro-enterprises, including retail ventures, through skill development, access to credit, and market linkages.

By indifi

3 thoughts on “Top Government Shop Schemes in India”

Leave a Reply

Your email address will not be published. Required fields are marked *