Business Subsidy provided by Government of India is in the nature a 'Free of cost' grant i.e. neither the interest amount nor the principal amount is required to be repaid.
Without drawing any line between existing and new businesses, the Government of India provides a golden opportunity to both Existing as well as New business units to avail the benefits of its subsidy schemes.
On getting Government subsidies, business units are able to cover their costs without making their products unaffordable, thereby increasing the business's competitive edge in terms of prices and subsequently increasing its overall profitability.
To promote diverse types of industries (majorly manufacturing units and some service-rendering businesses), the Government of India fuels industrial growth in our country by offering various financial incentives.
By providing initial financial assistance to small-scale industries, the Government of India has taken a big leap in encouraging many prospective entrepreneurs across the country to start their own business without worrying about the initial funding problems.