Startups Promoting Entrepreneurship in Rural India

Professor R. S. Sengar

Innovation and entrepreneurship have been the backbone of the rural economy. The startup culture has developed new business models in the rural parts of the country. This journey of technology- and information-driven entrepreneurship extends beyond agricultural startups. While ensuring the availability of many daily-use goods and services, these startups are entering new information- and technology-based sectors.Entrepreneurship is a vital economic and social activity. Even the ancient Rigveda states: "Work is accomplished through effort, not mere wishes" (Udyamen hi siddhyantikaryaninamanorathah). From ancient and medieval times to the modern era, entrepreneurship forms the foundation of the Indian economy. Rural India is no laggard in entrepreneurial innovations. Entrepreneurship-based ventures, services, and products simplify people's lives and serve as powerful means of livelihood. Inspired by entrepreneurship, innovations play a key role in job creation in both urban and rural areas. Supportive policy initiatives by the central and state governments arefostering an ecosystem that strengthens employment generation, supply-demand chains, self-employment, and the vision of Aatmanirbhar Bharat.

Startup Village Entrepreneurship Programme

A key component of the DeenDayalAntyodayaYojana-National Rural Livelihoods Mission (DAY-NRLM), launched by the Ministry of Rural Development, is the Startup Village Entrepreneurship Programme (SVEP) alms to assist rural entrepreneurs in establishing inclusive local systems for production, distribution, and exchange. Under this programme, 3,02,825 enterprises have created approximately 6,26,848 jobs opportunities.The Ministry of Agriculture and Farmers Welfare provides financial and technical support to agricultural startups. Since 2018-19, the "Innovation and Agripreneurship Development" programme under the RashtriyaKrishiVikasYojana (RKVY) has been implemented. 5 Knowledge Partners (KPs) and 24 RKVY Agribusiness Incubators (R-ABIs) have been appointed till date for training, incubation, and programme implementation. Under the programme, agri-entrepreneurs and startups receive up to 5 lakh at the idea/pre-seed stage and up to 25 lakh at the seed stage to market their products, services, business platforms, and scale operations. Self-Help Groups (SHGs) and their family members also receive support to establish small non-farm enterprises under SVEP.

NIDHI-PRAYAS Programme

The Department of Science and Technology (DST)'s NIDHI-PRAYAS programme plays a crucial role in strengthening the startup ecosystem and promoting entrepreneurship in rural India. It supports early stage innovators, including those developing agri-tech solutions for rural districts, at the national level. The programme converts innovative ideas into working prototypes, promotes rural technology adoption, and facilitates commercialization through a network of PRAYAS centres in technology business incubators across rural, semi-urban, and urban India. Key features include prototype development funding, incubation infrastructure, and business plan support for youth aspiring to launch startups. Startups are trained and incubated by appointed Knowledge Partners (KPs) and RKVY Agribusiness Incubators (R-ABIs). Supported agricultural startups contribute to economic growth by directly or indirectly creating jobs.

Institutional Training at the District Level

Training and courses play a pivotal role in fostering entrepreneurship through startups. Under Rural Self-Employment Training Institutes (RSETIs), entrepreneurial light has illuminated the lives of rural youth from one to another village. Today, rural youth are becoming successful entrepreneurs through RSETI's various courses. One RSETI has been established in every district of the country. Each RSETI conducts 30-40 skill development programmes annually, lasting from one week to six weeks. These cover agriculture and allied activities such as dairy farming, poultry, beekeeping, horticulture, sericulture, mushroom cultivation, floriculture, and fisheries.Production-oriented programmes include dress designing, rexine products, agarbatti making, football manufacturing, bags, bakery products, leaf-based cups, and recycled paper initiatives for men and women. Additionally, youth are trained in repairing two-wheelers, radios/TVs, motor rewinding, electrical transformers, irrigation pump-sets, tractors and power tillers, mobile phones, beauty courses, photography and videography, screen printing, household electrical repairs, and computer hardware/DTP-blending traditional and modern skills. At least 70% of trainees must be from rural BPL categories. Certificates issued by RSETIs are recognized by all banks for loan purposes, enabling trained rural youth to access credit from any scheduled bank.

The agriculture sector in India offers boundless entrepreneurial opportunities. The Government of India has launched the NABARD's Agri-SURE initiative to promote growth in agri-startups and enterprises for:

• Creating an investment-friendly environment for startups in agriculture and allied activities.
• Increasing and sustaining sector-specific capital commitments to enable equity support for agri and agri-tech startups serving farmers, FPOS/FPCs, and primary cooperatives.
• Encouraging entrepreneurs to adopt modern technologies in agriculture and agri-tech.

State Policy Initiatives Building the Entrepreneurship Ecosystem

States like Gujarat and Karnataka exemplify technology-driven best practices in creating new employment opportunities in rural areas through startups. In Gujarat, agritechstartups use IT andemerging technologies to boost productivity, optimize resource use, and improve farmers' decision-making statewide. Under the Industrial Policy-2020, the state government provides financial aid via the Startup Innovation Assistance Scheme. The Student Startup and Innovation Policy (SSIP) 2.0 offers creation grants to promote innovation at educational levels.Karnataka has launched its own initiative in startups. Its AVGC-XR Policy opens new doors for youth in animation, visual effects, gaming, and extended reality. First introduced in 2012 Karnataka is the only state to launch a five-year AVGC-XR Policy for the third consecutive term.Easy and affordable internet access has laid the foundation for India's creative economy. Millions of youth now provide content creation and digital services. The creator economy energizes efforts to build a $5 trillion economy. The rise of short-video platforms in non-metro areas has added new dimensions to content consumption. Local enterprises and multinational companies alike recognize the creator economy's power. FMCG, automobile, and service sectors leverage local platforms. Renowned stage OTT platforms are offspring of India's startup innovation ecosystem, blending technology with heritage to transform entertainment potentials into opportunities. This OTT platform offers web series, films, and original content in dialects like Haryanvi, Rajasthani, and Bhojpuri.

The Madhya Pradesh government has implemented the Startup India Policy-2022 to inspire rural youth toward startups and innovation. In Chhindwara district's Rajakoh village, four women launched a startup making cookies and biscuits from mahua flowers which is now in demand nationwide. Inspired, many other village women have joined them. Prime Minister praised this innovation in Mann Ki Baat. Uttar Pradesh's Startup Policy 2020 (first amendment 2022) targets at least one incubator per district, totaling 100. It provides capital grants of 1-1.25 crore to incubators in Purvanchal/Bundelkhand for technology infrastructure. Lifestyle changes and climate crises have heightened health awareness, boosting demand for organic products. In Rajasthan's Sri Ganganagar, Naturaland Organic startup directly links with 10,000 farmers. Among i-Start registered startups, over 2,600 are led by women and 288 by young students. Student registrations on i-Start exceed 1,16,000. Atal Innovation Studios and Acceleratorsare being established to create opportunities in new technologies.

Entrepreneurship Creating Jobs in Tribal Areas

Best practices in rural entrepreneurship via startups are being written in tribal-dominant states like Chhattisgarh. In Dhamtari district, farmers are inspired toward medicinal farming entrepreneurship, especially women, for agri-based ventures. NRLM has motivated 300 SHG (Bihan) members to cultivate medicinal crops on 130 acres in areas like Kurud, Kuhkuha, Gudguda, and Magarlod. Crops like bach, khas, patchouli, sindoor, brahmi, and lemongrass are successfully grown. ~4,000 medicinal plants have been planted along the Mahanadi riverbanks, promising significant income growth. This medicinal crop-based model exemplifies livelihood enhancement. The Medicinal Plants Board provides eligible farmers with grants, training, and seed links.

Startups Promoting Eco-Tourism

Tourism and services offer new opportunities for rural entrepreneurship-based startups. In Chhattisgarh's Bastar, homestay services like DhurwaDera are gaining popularity, attracting domestic and international tourists. Notably, Dudhmaras in Chhattisgarh is among 60 global sites selected for the UN Tourism Village Upgradation Programme. Bastar Food startup processes forest produce into products like mahualaddus, mahua tea, and tamarind pickle, creating local jobs.

Social Entrepreneurship through Entrepreneurship

The UN Development Programme (UNDP) advances entrepreneurship in rural India via startups. In partnership with Atal Innovation Mission since 2019, it launched Digi-Swasthya in Bihar, linking telemedicine (phone/video consultations) to communities. Now active in six states, it has delivered over 80,000 tele-consultations. Gurugram's Dump-in-Bin startup promotes entrepreneurship via plastic waste management, converting it into cement-free, eco-friendly building materials. It has recycled over 700 tons of plastic and established a pilot facility.

Conclusion

Success stories of entrepreneurship in India go beyond metros. Youth in small towns and villages are accelerating the economy through startups and innovation. Notably, rural initiatives generate employment and livelihoods while addressing challenges like cleanliness, plastic waste, and climate crises-fostering social enterprises.

Writer: Professor R. S. Sengar, Director Training and Placement, Sardar Vallabhbhai Patel University of Agriculture and Technology, Modipuram, Meerut.