ASPIRE Scheme

The ASPIRE Scheme is an acronym for A Scheme for Promotion and Innovation, Rural Industries & Entrepreneurship. This initiative introduced by the Ministry of MSME aims to promote entrepreneurship through technology.

It sets up incubation and technology centres in rural industries, especially in the agriculture sector. The right technological support helps boost entrepreneurship in the country and reduces unemployment.

This scheme is designed to improve skills and enhance entrepreneurship in the country. Here are some main features:

• Cultivate entrepreneurship throughout India by encouraging individuals to start innovative ventures

• Promote job creation and reduce unemployment by establishing new businesses 

• Strengthen local economies by focusing on economic development at the district level

• Enhance the competitiveness of the Micro, Small, and Medium Enterprises (MSME) sector for economic growth

• Facilitate the development of innovative business solutions that address social requirements

The technical support that this scheme aims to provide can be used for various purposes. Check out a few essential points:

• Enhancing the value of agricultural and forest yields 

• Implementing automated techniques in agricultural practices 

• Creating business frameworks to increase value and pool resources in rural regions

• Focusing on social benefits and creating employment opportunities

• Repurposing agricultural pre- and post-harvest waste

This scheme comes with a wide range of benefits for entrepreneurs. Here is a quick snapshot:

• Financial Support

It provides financial grants to establish TBIs and LBIs, which helps cover expenses related to infrastructure, equipment, and training

• Skill Development and Upgradation

The scheme provides training to equip early-age entrepreneurs to run businesses

• Employment Generation

It helps generate new job opportunities in rural regions, which helps reduce unemployment and poverty

• Market Connectivity

It provides links between entrepreneurs and markets to support business establishment and growth

To benefit from this scheme, you need to meet the eligibility criteria set by the Indian Government. The following entities are eligible to obtain the benefits of the scheme:

• Government agencies at both central and state levels

• Existing training centres that ministries and departments operate, industry associations, and academic institutions

• Not-for-profit private organisations running successful incubation and skill development programs

The MSME Ministry approved the continuation of the ASPIRE Scheme from the financial year 2021-22 to 2025-26. The Indian Government allocated a budget of ₹194.87 Crores for this scheme.

The Ministry of MSME has entrusted SIDBI to manage the ASPIRE Fund, which has a corpus of ₹310 Crores. This fund supports various Alternative Investment Funds (AIFs). These funds invest twice the amount contributed by SIDBI. It contributes to various MSMEs and start-ups in rural and agricultural sectors.

The objectives of SIDBI under this scheme include:

• Providing accelerator support in agro-based sectors to stimulate growth in the rural economy

• Supporting start-ups and enterprises involved in innovation and entrepreneurship

• Creating links across value chains in manufacturing and service delivery

As the scheme promotes grassroots economic development, applying for one can help you reap benefits. Follow these points:

• Submit your application to the ASPIRE Scheme Steering Committee under the Ministry of MSME

• This committee will oversee the overall policy, including its management and coordination

• The Secretary of the Ministry of MSME will serve as the chairperson of the council