What is ASPIRE?
ASPIRE (A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship) is an initiative by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. The scheme was launched to set up a network of technology centers and incubation centers to accelerate entrepreneurship and promote startups for innovation in the agro-based and rural industries.
The scheme aims to create new jobs, reduce unemployment, and promote entrepreneurship culture in India. It focuses on innovative technology solutions for rural and agro-based industries, bridging the gap between research and development and commercialization of products and services.
Objectives of ASPIRE
- • Create jobs and reduce unemployment in rural and semi-urban areas
- • Promote entrepreneurship culture across the country
- • Facilitate innovative business solutions for rural and agro-based industries
- • Set up incubation centers for technology-based entrepreneurship
- • Bridge the gap between R&D and commercialization
- • Support grassroots innovators and traditional knowledge holders
Key Focus Areas
Agro-Based Industries
Innovations in food processing, agricultural tools, post-harvest technology, and value addition
Rural Industries
Modernization of traditional crafts, village industries, and rural entrepreneurship development
Innovation Commercialization
Converting R&D outputs into viable commercial products and services
Entrepreneurship Development
Creating an ecosystem that supports and nurtures new entrepreneurs
Scheme Components
ASPIRE operates through multiple components to create a comprehensive support ecosystem:
Component 1: Technology Business Incubators (TBIs)
TBIs support technology-based startups and innovative enterprises with high growth potential.
Features:
- • Physical infrastructure for startups
- • Access to technical and business mentorship
- • Networking opportunities with investors
- • Support for prototype development
- • IP protection and commercialization support
Component 2: Livelihood Business Incubators (LBIs)
LBIs focus on traditional skills, crafts, and rural entrepreneurship development.
Features:
- • Skill upgradation for traditional artisans
- • Design and product development support
- • Market linkages for rural products
- • Access to working capital and credit
- • Entrepreneurship training
Component 3: Seed Fund for Startups
ASPIRE provides seed funding to startups incubated in TBIs for product development and commercialization.
Funding Features:
- • Equity or convertible debt investment
- • Funding up to ₹1 crore per startup
- • Focus on innovation and scalability
- • Support for product development and market entry
Technology Business Incubators (TBIs)
TBIs under ASPIRE provide comprehensive support to technology startups:
Services Provided
Infrastructure
- • Co-working space
- • Laboratory facilities
- • Meeting and conference rooms
- • Prototyping facilities
Business Support
- • Business plan development
- • Market research
- • Financial planning
- • Legal and IP support
Technical Support
- • Technical mentorship
- • R&D support
- • Product testing
- • Technology transfer
Funding Access
- • Seed funding
- • Investor connect
- • Grant facilitation
- • Loan facilitation
Focus Sectors
Agriculture
Agri-tech, farm mechanization, post-harvest tech
Food Processing
Processing technology, packaging, preservation
Clean Energy
Solar, biogas, energy-efficient solutions
Water Management
Conservation, purification, irrigation
Healthcare
Affordable medical devices, telemedicine
Education
Ed-tech, skill development tools
Livelihood Business Incubators (LBIs)
LBIs focus on creating sustainable livelihoods through traditional skills and rural entrepreneurship:
LBI Activities
Skill Development
Training programs for skill upgradation of artisans and rural youth in traditional and modern techniques.
Design Support
Product design development keeping traditional elements while improving market appeal.
Market Linkages
Connecting rural producers with markets, including e-commerce platforms and retail networks.
Credit Facilitation
Helping artisans and entrepreneurs access working capital and term loans from banks.
Target Beneficiaries
Traditional Artisans
Weavers, potters, metal workers, wood carvers, and other craft practitioners
Rural Youth
Young entrepreneurs interested in rural and agro-based businesses
Women Entrepreneurs
Women interested in home-based and small-scale enterprises
SC/ST Entrepreneurs
Special focus on entrepreneurs from scheduled castes and tribes
Funding Structure
ASPIRE provides financial assistance for establishment and operation of incubators:
Grant for TBIs/LBIs
| Component | Maximum Grant | Duration |
|---|---|---|
| Capital Grant (Infrastructure) | Up to ₹2 crore | One-time |
| Operational Expenses | Up to ₹50 lakh/year | Up to 5 years |
| Seed Fund for Startups | Up to ₹1 crore/startup | As required |
Cost Sharing
- • Government Contribution: Up to 80% of project cost
- • Host Institution Contribution: Minimum 20% (can be in-kind)
- • In-kind Contribution: Land, building, existing facilities
- • Cash Contribution: Working capital, operational funds
Eligibility for Host Institutions
The following institutions can apply to host ASPIRE TBIs/LBIs:
Eligible Institutions
Educational Institutions
IITs, NITs, Universities, Engineering Colleges, Management Institutes with proven track record in entrepreneurship.
R&D Institutions
CSIR labs, ICAR institutes, DRDO labs, and other recognized research institutions.
Industry Associations
CII, FICCI, ASSOCHAM, and sector-specific industry associations with infrastructure and network.
NGOs and Trusts
Reputed NGOs, trusts, and foundations with experience in entrepreneurship development.
Host Institution Requirements
- • Minimum 5,000 sq ft built-up space (or land for construction)
- • Commitment to provide matching contribution (20%)
- • Availability of technical and management experts
- • Track record in entrepreneurship or relevant sector
- • Governance structure for managing the incubator
- • Network of mentors and industry connections
Application Process
The ASPIRE application process involves several stages:
Step 1: Identify Focus Area
Determine whether the incubator will focus on technology (TBI) or livelihood (LBI) and identify specific sectors.
Step 2: Institution Readiness
Ensure host institution meets eligibility criteria and has necessary infrastructure and commitment.
Step 3: Proposal Development
Prepare comprehensive proposal including objectives, infrastructure plan, operational strategy, and financial projections.
Step 4: Application Submission
Submit application through ASPIRE portal or to DC MSME with all required documents.
Step 5: Evaluation
Expert committee evaluates proposal based on merit, feasibility, and potential impact.
Step 6: Approval and Funding
Steering Committee approves and sanction letter is issued. Funds are released in instalments.