How Government Schemes Are Supporting Startup Exports

India’s startup ecosystem has grown rapidly, and with it, the opportunities for startups to expand beyond the country's borders. Exporting goods and services allows startups to tap into new markets, scale their operations, and contribute to the country's global trade presence. However, navigating international markets can be complex, particularly for early-stage startups. This is where government schemes and initiatives, specifically designed to support exports, come into play.

Launching Global Dreams

In an increasingly interconnected world, borders are becoming less relevant for ambitious Indian entrepreneurs. Startups today are no longer limited to domestic markets; the global stage is now within their reach. For those with the vision to go global, the Indian government is offering substantial support, helping startups turn local innovations into international success stories.

The Role of Government Schemes in Supporting Exports

Several government-backed initiatives aim to provide the tools, networks, and financial support startups need to thrive in international markets. These schemes are particularly important as Indian startups look to expand their footprint and make a mark in the global economy.

Some of the most relevant government schemes include:

1. Export Promotion Council for E-commerce (EPCES): The EPCES has been crucial in supporting startups that are looking to export products through online channels. By providing a platform for e-commerce businesses, this council helps startups reach international customers and navigate the complex legal, logistical, and regulatory aspects of global trade. The council offers a range of services, including market research, export procedures, and training programs.
   

2. Niryat Bandhu Scheme: The Niryat Bandhu Scheme, launched by the Directorate General of Foreign Trade (DGFT), is an initiative aimed at mentoring startups and small businesses on export procedures. Through this scheme, Indian startups are provided with the knowledge and resources necessary to enter global markets. The focus is on helping new exporters understand trade regulations, market dynamics, and international trade strategies.
   

3. Startup India Export Support: Under the Startup India initiative, the government has introduced specific export facilitation measures. This includes simplifying the process of obtaining export licenses, easing access to Export Credit Guarantee Corporation (ECGC) insurance, and providing financial incentives through schemes like Market Access Initiative (MAI). These efforts have led to an increased number of Indian startups successfully exporting goods and services to global markets.
   

4. SEIS (Service Exports from India Scheme): SEIS incentivizes Indian service providers, including startups, for their exports. Service-based startups in sectors like IT, fintech, healthcare, and education can earn duty credit scrips, which are beneficial for offsetting customs duties on imported goods. This scheme encourages startups to explore and expand into global service markets.
   

5. National Export Insurance Account (NEIA): The NEIA is designed to provide risk mitigation for Indian exporters, including startups, by offering credit insurance. This is particularly important for startups entering unfamiliar markets, as it reduces the risks associated with payment defaults. The government supports exporters through insurance cover, thereby promoting the growth of exports.
   
   

Success Stories: Startups Going Global

Numerous Indian startups have benefited from these government schemes and expanded into international markets.

• Oyo Rooms, one of India's largest hospitality startups, leveraged government support to expand across Europe, South America, and Asia.
  

• Zomato, the global food delivery giant, has made its mark in over 25 countries after initially benefiting from export facilitation schemes.
  

• iMerit, a data services company from Kolkata, scaled its operations globally, with clients across the United States, Europe, and Asia, with support from SEIS and other initiatives.
  

Key Takeaways for Startups, Investors, and Entrepreneurs

• For Startups: Leverage government schemes like EPCES and SEIS to ease entry into global markets. Startups should take advantage of training programs, export incentives, and risk mitigation tools like export insurance.
  

• For Investors: Global expansion presents a unique opportunity for investors to back startups with high growth potential. Investors should look for startups that are export-ready and have a clear roadmap for international expansion.
  

• For Entrepreneurs: Aspiring entrepreneurs can explore international markets early in their startup journey, benefiting from government-led mentoring programs like the Niryat Bandhu Scheme, which helps guide businesses through the complexities of exporting.
  

Embracing Global Markets

As Indian startups continue to make their mark on the world stage, government-backed schemes are proving to be a vital support system. From export credit insurance to e-commerce facilitation, these initiatives are helping Indian entrepreneurs navigate the intricacies of international trade. With a wealth of opportunities at their disposal, startups have the potential to drive India’s global economic footprint and inspire future entrepreneurs to dream bigger.

By tapping into these resources, Indian startups can break barriers, scale their businesses, and contribute to the country’s growing reputation as a hub for innovation and export excellence. The world is open—now it's time for Indian startups to take the leap.

Statistics:

• ₹7,500 crore committed by SIDBI as part of the Fund of Funds for Startups (FFS), supporting export growth.

• Over 150 startups have received tax exemptions, encouraging more export-oriented businesses to emerge.

• India’s startup exports have grown at a rate of 10% year-on-year, showcasing the increasing importance of international markets.