What Is Multiplier Grants Scheme? | Government's Scheme for Supporting Startups in India

Kinnary Nensee Kinnary Nensee
Aug 30, 2022 5 min read
What Is Multiplier Grants Scheme? | Government's Scheme for Supporting Startups in India

India is a hub of untapped potential. It is also a land of commercial possibilities that can be realized with the correct tools. The Indian government realizes this talent pool and has taken various initiatives to tap, encourage and help this talent in a bid to build a strong economy.

The government has created 50 startup programs to aid the country’s startup mission and address young entrepreneurs and small and medium enterprises.

The Department of Electronics and Information Technology (DeitY) has established the Multiplier Grants Scheme in an effort to bridge the gap between commercialization and R&D.

What Is Multiplier Grants Scheme?
MGS Objectives
MGS Implementation Process
Who is Eligible for Multiplier Grants Scheme?
Benefits of Multiplier Grants Scheme
MGS and Its Terms and Conditions

Best 10 Government Schemes for Startups in India

What Is Multiplier Grants Scheme?

The Multiplier Grants Scheme (MGS) intends to stimulate collaborative Research and Development between industries and academics and R&D organisations. The functional aspect of the MGS Scheme revolves around industries contributing to R&D to create items for commercialization at the institutional level. The attraction of participation comes in the form of the government contributing the same amount as given by the industry if the proposal is accepted. However, a combined proposal made by industry and R&D institutions has to be submitted for approval of financial assistance to the government.

Value of Startup Funding Across India from 2015 to 2021
Value of Startup Funding Across India from 2015 to 2021

MGS Objectives

There are a number of things that the Indian Government hopes to accomplish through this scheme:

  • Establish, nurture and deepen the ties between research institutes and the industry.
  • Encourage and focus on industry-oriented research and development to boost trade.
  • Speed up the development of indigenous goods and services.
  • Commercialization and Globalisation through collaborative work.

MGS Implementation Process

To make it effective and efficient MGS has made a few suggestions about its implementation process:

  • Academic or R&D institutions should submit project proposals in collaboration with industry or industry consortiums. The suggestions for such collaborative research should come from the industry or industry consortium.
  • Depending on the availability of funds, proposals could be invited for up to 3 times in a year.
  • A working group within the department will examine and evaluate the proposal and may invite additional domain experts depending on what idea is under consideration. This group will make a recommendation for appropriate budgetary support.
  • The project's financial and technical progress will be reviewed regularly by a Project Review and Steering Group (PRSG). PRSG will also have an industry partner on the panel. This group may also recommend grant release, continuity, extension, short-closure or even a new project.
  • Specified terms and conditions will apply to the proposed scheme’s grants.

List Of Government Schemes for Startups in India
The Indian government is doing a lot to encourage and promote entrepreneurship. This StartupTalky post discusses some of the schemes launched to support Indian startups.

Who is Eligible for Multiplier Grants Scheme?

  • The idea and proposal for collaborative research should be industry-specific and presented jointly by the industry or industry consortium and R&D institution. This project proposal should be submitted to DeitY under the MGS program.
  • The application of such a proposal must be for E&IT innovation in modules, products, packages or services. Due consideration and evaluation will also be given to projects that include prototypes and packaging for commercialization.
  • The proposal’s focus must be the primary business of the industry.
  • The chosen institute must have the necessary skills and experience in the suggested field of research. The factors to be taken under consideration are:
  1. The number of professional courses offered by the institution
  2. History of prior research work and projects completed
  3. Number of papers published
  4. Any industry collaborations
  5. Institute’s existence for at least 5 years
  • The project submission should include market research on modules, products, packages and services to be created. The innovation’s output should be technically and commercially viable.
  • Some necessities that are must-haves for the industry are:
  1. Staff and technology absorption capacity.
  2. Existing or detailed plans for procurement of Infrastructure for in-house production.

Benefits of Multiplier Grants Scheme

The Government of India has initiated this scheme with expectations to derive benefits that will positively affect the growth of the nation and contribute immensely to the economic development of the country.

  • All projects undertaken will be focused towards market-oriented R&D.
  • Improvement in the relevance of education and training.
  • Industry will be aided towards mobilization of technology and building skills.
  • Indigenous new products will be cost-competitive and able to respond quickly to market demands.
  • Incentives and royalty sharing will contribute towards recruiting and retaining qualified personnel in academia and R&D labs.
  • Close collaboration between industry, academia and R&D may contribute to a rise in the number of entrepreneurs.

MGS and Its Terms and Conditions

Largely, the MGS’s focus is to improve the entrepreneurial scene in the country and to boost the country’s economy through collaborative innovation and growth. There are other terms and conditions of the scheme that ensure that its benefits and resources give the country an edge on the international stage.

  • Greater support will be given to innovations that are a breakthrough rather than incremental.
  • The innovations generated through these projects must be kept in India by the corporations.
  • The IPR must be located in India so that the country has access and control over it in the event of a national emergency.

Conclusion

With this level of support and encouragement from the Indian Government through the MGS Scheme, progress and growth are on a fast track and new innovations are a near-future reality. The new and budding entrepreneurs have a base support system to build innovation-led businesses that are technologically and commercially viable.

FAQs

What is Multiplier Grants Scheme?

Multiplier Grant Scheme intends to stimulate collaborative Research and Development between industries and academics and R&D organisations. The functional aspect of the MGS Scheme revolves around industries contributing to R&D to create items for commercialization at the institutional level.

How do I apply for a Multiplier Grants Scheme?

The idea and proposal for collaborative research should be industry-specific and presented jointly by the industry or industry consortium and R&D institution. This project proposal should be submitted to the Department of Electronics and Information Technology under the MGS program.

What are the government schemes for startups?

Some of the most popular government schemes for startups are:

  • Pradhan Mantri Mudra Yojana (PMMY)
  • Multiplier Grants Scheme (MGS)
  • SAMRIDH Scheme
  • Startup India Seed Fund
  • The Venture Capital Assistance Scheme (VCA)
  • Stand Up India Scheme
  • High Risk - High Reward Research

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