What sectors does the Aspire scheme focus on?

It focuses on agro-industry, rural enterprises, and small businesses.

What support does Aspire provide?

The govt scheme offers financial support, incubation, and mentoring for rural entrepreneurs.

Who can apply for the Aspire Scheme?

Rural entrepreneurs, start-ups, and MSMEs involved in innovation and agro-based industries can apply.

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Aspire Scheme - Promoting Innovation, Rural Industries, And Entrepreneurship In India

Q: What is the Aspire Scheme?

The Aspire Scheme aims to promote entrepreneurship, innovation, and job creation in rural India through start-ups and small industries.

Alankar Mishra

Author

Updated: 28-01-2025 at 7:00 AM

Aspire Scheme - Promoting Innovation, Rural Industries, And Entrepreneurship In India

A government scheme for the Promotion of Innovation, Rural Industries and Entrepreneurship formally called as ASPIRE scheme, was launched in the year 2015 by the Government of India to supplement the rural entrepreneurial ecosystem.

Directly focused on enhancing the innovative potential of agricultural/rural industries through the creation of a demand for technology and incubation centres, which provide all necessary technologies, skills and funds for the new MSMEs & startups. As every country wants to be innovative to create employment opportunities for its citizens, the ASPIRE scheme comes in handy in fostering creativity to ensure every individual enjoys the economy.

Key Details	ASPIRE Scheme
Full Form	A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship
Launch Year	2015
Administered by	Ministry of MSME, Government of India
Initial Budget	₹200 Crore
Primary Focus	Rural Entrepreneurship, MSME Development, Innovation in Agriculture
Key Components	Livelihood Business Incubators (LBI), Technology Business Incubators (TBI), SIDBI Support

What Is The ASPIRE Scheme?

The ASPIRE programme is a special central government scheme which talks about the creation of use awareness and using and improving technology and innovations in agriculture and rural areas. In India, farming is one of the paramount sectors wherein 58 per cent of the population is engaged.

This plan was intended to be for new units, small medium & micro enterprises and businessmen to make sure that all the resources available to them are properly used. With the help of incubation and technology centres set under the ASPIRE scheme, there is an integration of modern technologies and innovative models of conducting businesses in the agriculture sector leading to increased employment opportunities and poverty alleviation.

Features

The ASPIRE scheme aims to promote and sustain innovation in rural industries, particularly in agriculture. Its main features are:

Creating Jobs: Creating job opportunities and eliminating joblessness in non-urban centres.
Fostering Innovation: Promoting the spirit of entrepreneurship and innovation in agriculture and rural sectors.
Grassroots Economic Development: Supporting economic growth by developing local enterprises.
Strengthening MSMEs: Encouraging innovation in MSMEs by facilitating them to go global in terms of competition.
Sustainable Growth: Motivating and promoting companies whose social and environmental concerns are directed towards rural areas.

Benefits

The ASPIRE scheme provides several benefits to farmers, entrepreneurs, startups, and MSMEs in rural areas. Let us have a look at these benefits carefully.

Support for Agricultural Technology: Assisting farmers in adopting more efficient farming practices.
Composting and Recycling: Promoting composting, recycling farm waste, and sustainable animal farming for business growth.
Processing of Agricultural Products: Supporting the processing of forest and farm produce.
Incubation Support: Offering incubation centres, training programs, and funding for business expansion.
Employment Opportunities: Boosting employment and local businesses in rural regions.

Components Of The Scheme

1. Livelihood Business Incubation (LBI):

The primary objective of LBIs is to support rural entrepreneurs through training, incubation, and funding. The objective is to create viable businesses in rural areas that generate employment.

A grant covering the entire cost of fixed capital (plant and machinery) of up to ₹100 lakh is offered for the establishment of LBIs.

2. Technology Business Incubation (TBI):

TBIs promote innovation and technology-based solutions in agriculture-related industries. Such incubators aim to develop inventions into successful business structures by commercialising technology.

For new TBIs, the current grants can go up to ₹100 lakh; whereas, for existing TBIs, there is a provision of support of ₹30 Lakh.

3. SIDBI Funding Initiatives:

The Small Industries Development Bank of India (SIDBI) assists in commercialising entrepreneurial concepts that are centred around agribusiness, entrepreneurship development, and agricultural advancements.

A sum of ₹60 crore has been earmarked by the Government of India to SIDBI to facilitate rural innovation and enterprise development.

Nature Of Assistance Under ASPIRE

A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship is an initiative to promote innovation and entrepreneurial development in rural The ASPIRE initiative is to foster innovation and entrepreneurial development. Through funding and access to resources, ASPIRE seeks to incubate new businesses, particularly in agro-based industries. The scheme provides resources of different kinds for agri-entrepreneurs to start, expand and make the business sustainable, in the rural region. Here are the forms of assistance provided under the ASPIRE framework:

Full Financial Coverage: Covering the cost of plant and machinery, up to ₹100 lakh for LBIs and ₹30-100 lakh for TBIs.
Support for Incubation Centers: Assisting both new and existing incubation centres to help entrepreneurs start and grow ventures in rural areas.
Support for Technology and Market Linkages: Providing technology and market connections to ensure businesses can thrive beyond the early stages.

Funding Pattern

In the year 2015, the initial outlay under the ASPIRE scheme was ₹200 crore. In the year 2019-20, the government proposed the establishment of 80 LBIs and 20 TBIs with an expenditure of ₹62.5 crore on LBIs and ₹61.5 on TBIs.

Item	Amount Allocated
Creation and maintenance of technology centres	₹2 crore
Capacity building and consultancy support	₹17.75 crore
Fund for setting up Livelihood Business Incubators	₹62.5 crore
Fund for setting up Technology Business Incubators	₹61.5 crore
Administrative Costs	₹6.25 crore
Fund for Startups (via SIDBI)	₹60 crore

Eligibility Criteria

The ASPIRE scheme is designed to empower rural entrepreneurs by offering support to various individuals and organizations. Its eligibility criteria allow both individual entrepreneurs and institutions to access resources and assistance provided by the program. This focus on inclusivity encourages innovation and growth in rural areas, helping to improve agro-based industries and create sustainable businesses. Below are the detailed eligibility criteria for the ASPIRE scheme:

People who are above the age of 18 with an intent to initiate a new enterprise and who are especially attracted towards the rural or farming zones.
Higher education institutions, research institutions and technological colleges oriented towards agriculture or rural-based industries.
Micro, Small, and Medium Enterprises (MSMEs) registered under Udyam.
Government and non-government institutions working in rural development, entrepreneurship, or business promotion.
Both new and existing incubators, especially those focused on agro-businesses.

Application Process

To make the ASPIRE scheme's application process easier, eligible candidates can apply through the Ministry of MSME's Steering Committee. This committee reviews applications and offers the support needed to start or grow rural and agro-based businesses. Here’s how to apply:

Submit Applications to the Steering Committee: Eligible applicants should send their applications to the Ministry of MSME's Steering Committee, which checks if the proposals align with the scheme’s goals.
Visit the Official Website: Go to the official ASPIRE website at aspire.msme.gov.in to find more information and application forms.
Application Review and Support: The Steering Committee will review your application and provide help to ensure your project is implemented successfully.

MSMEs In India And Government Aid

MSMEs are called as lifeline of the Indian economy as they are employed worldwide and also add significantly to the GDP of any country. To foster the growth of these small industries, the government, through programs of the nature of ASPIRE, renders financial support, and incubation assistance, and promotes technology utilization.

Conclusion

The ASPIRE scheme has also contributed significantly towards creating an ecosystem that encourages rural entrepreneurship, innovation and technology in the Country. It gives financial support, conducts skills training and provides incubation to entrepreneurs and MSMEs to help them build viable businesses that have a positive impact on rural society.

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