Question map
With reference to 'Stand Up India Scheme', which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs. 2. It provides for refinance through SIDBI. Select the correct answer using the code given below.
Explanation
The correct answer is option C because both statements are correct.
Statement 1 is correct as the Stand-up India portal, launched in 2016, provides a digital platform based on three pillars to support enterprises promotion for SC, ST [1]and women entrepreneurs. The scheme is aimed at promoting entrepreneurship and job creation at the grassroots level, especially keeping in mind the SCs/STs and women.[2]
Statement 2 is also correct. The scheme provides for refinance through[3] SIDBI. There is a refinance window through Small Industries Development Bank of India (SIDBI) with an initial amount of Rs. 10,[4]000 crore.
Since both statements accurately describe key features of the Stand Up India Scheme, option C (Both 1 and 2) is the correct answer.
Sources- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > STAND-UP INDIA > p. 401
- [2] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.8 Start-ups and Policy Enablers for Innovation > p. 239
- [4] https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=134220
PROVENANCE & STUDY PATTERN
Full viewThis is a classic 'Flagship Scheme' question. The pattern is predictable: Statement 1 asks 'Who is it for?' (Beneficiary) and Statement 2 asks 'Who backs it?' (Financial Architecture). To crack these, you must move beyond the slogan and study the funding mechanism (Refinance/Nodal Agency) found in the PIB launch document.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Explicitly describes the Stand‑up India portal as supporting enterprise promotion for SC, ST and women entrepreneurs.
- Mentions the portal's functions (digital platform, links to SC/ST corporations, handholding) which align with promoting entrepreneurship among these groups.
- States Stand Up India is aimed at promoting entrepreneurship and job creation at the grassroots level, especially for SCs/STs and women.
- Directly links the scheme's objective to the named beneficiary groups (SC/ST and women).
- Explicit statement in the passage directly says the scheme provides refinance through SIDBI.
- This is a clear, unambiguous assertion tied to the Stand Up India Scheme description.
- Lists SIDBI as the refinancing agency for the Stand Up India Scheme.
- Confirms the role of SIDBI in refinancing loans under the scheme's description.
- Specifies a 'Refinance window through Small Industries Development Bank of India (SIDBI)'.
- Mentions an initial amount of Rs. 10,000 crore for the SIDBI refinance window, indicating operational refinancing provision.
Defines SIDBI's core role: it 'mainly extends indirect financial assistance (by way of refinance) to financial institutions for onward lending to MSMEs.'
A student could note that if Stand Up India loans count as MSME lending by banks, they might be eligible for SIDBI refinance and then check scheme rules or lender channels to confirm.
States SIDBI began 'as a refinancing agency to banks and State-level financial institutions for their credit to small industries' and also provides direct credit to SMEs.
Use this pattern to investigate whether Stand Up India financing is routed through banks that could obtain refinance from SIDBI.
Describes Stand-up India as a platform to support SC/ST and women entrepreneurs including loan handholding, implying loans are disbursed via lending institutions.
Combine with SIDBI's refinance role to ask whether those lending institutions are the ones SIDBI refinances (i.e., banks/SLFIs).
Notes that special refinance facilities were provided to All-India Financial Institutions including SIDBI 'for lending and refinancing.'
A student could infer that SIDBI had funds earmarked for refinancing MSME lending during that period and check if Stand Up India lending fell within that lending activity.
Contains an examination-style item that explicitly pairs the Stand-up India Scheme with the claim 'It provides for refinance through SIDBI' (presented for correctness checking).
Treat this as an indicator the relationship is questioned in exam sources; the student should verify official scheme documents or RBI/SIDBI notifications to settle it.
- [THE VERDICT]: Current Affairs Sitter. The scheme was launched in April 2016; the exam was in August 2016. It was the headline event of that year.
- [THE CONCEPTUAL TRIGGER]: Financial Inclusion & Entrepreneurship (GS-3 Economy). Specifically, credit flow to vulnerable sections.
- [THE HORIZONTAL EXPANSION]: Memorize the 'Stand Up' constraints: 1) Loan size: ₹10 Lakh to ₹1 Crore. 2) Condition: 'Greenfield' enterprises only (first-time venture). 3) Mandate: At least one SC/ST and one Woman borrower per bank branch. 4) Repayment: 7 years + moratorium. 5) Guarantee: CGFSI (Credit Guarantee Fund for Stand Up India).
- [THE STRATEGIC METACOGNITION]: When a scheme involves loans, always ask: 'Who provides the money?' (Banks) and 'Who backs the banks?' (Refinance Agency). For small business schemes, if the option says SIDBI, it is highly probable. If it says RBI, it is likely a trap (RBI regulates, it rarely refinances specific schemes directly).
Both references explicitly tie the scheme's objective to promoting entrepreneurship among SCs, STs and women.
High‑yield for UPSC: questions often ask scheme objectives and beneficiaries. Mastering this helps answer direct scheme‑based prelim and mains questions and to compare social‑inclusion oriented economic measures. Prepare by making concise notes listing objective, beneficiaries, launch year and delivery features.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > STAND-UP INDIA > p. 401
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.8 Start-ups and Policy Enablers for Innovation > p. 239
The evidence contrasts Stand Up India (SC/ST/women focus) with Start Up India (broader startup finance focus).
Frequently tested pattern: UPSC asks differences between schemes with similar names. Learning to contrast aim, target groups and instruments avoids confusion in prelims and forms strong mains answers. Use tabular comparisons and one‑line memory anchors.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > 7.8 Start-ups and Policy Enablers for Innovation > p. 239
Reference notes a digital portal, links to central/state SC/ST corporations and handholding support as part of Stand‑up India.
Understanding delivery mechanisms (e‑governance, handholding, institutional linkages) is useful for questions on implementation and effectiveness of schemes. UPSC often probes how schemes are implemented; note mechanisms and institutions involved for analytical answers.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > STAND-UP INDIA > p. 401
Reference [9] describes Stand-Up India as a 2016 portal supporting SC/ST and women entrepreneurs with pre-loan handholding and operations support.
High-yield for UPSC: schemes' target groups and core functions are frequently asked. Understanding beneficiaries (SC/ST, women), the digital/handholding nature, and launch context helps answer scheme-identification and objective-based questions. Study approach: memorise scheme features, compare with similar MSME schemes, and practice direct‑function questions.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 12: Indian Industry > STAND-UP INDIA > p. 401
References [2] and [3] state SIDBI mainly provides refinance/acts as a refinancing agency to banks and state institutions to support MSME credit.
High-yield: questions often probe financial institutions' mandates (refinance vs direct lending). Knowing SIDBI's primary functions (refinance, promotion, and later direct finance) helps link policy measures to implementing agencies. Preparation: learn mandates of SIDBI, NABARD, NHB and contrast refinance/credit roles.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 15. Small Industries Development Bank of India (SIDBI): > p. 84
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 7: Money and Banking > Small Industries Development Bank of India > p. 182
References [6] and [8] note government/RBI provided special refinance facilities and funds to institutions including SIDBI for sectoral lending and refinancing.
Important for UPSC: shows how macro‑policy (RBI/Government) supports development institutions during crises or policy drives. Useful for questions on crisis measures, institutional finance, and sectoral credit flow. Preparation: map recent refinance measures, amounts, and target DFIs; relate to credit delivery mechanisms.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 21: Sustainable Development and Climate Change > VII. Distribution of Dividend by Banks > p. 612
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > Steps taken by RBI under Aatma Nirbhar Bharat > p. 248
The 'Greenfield' Trap. The next logical question would swap 'Greenfield' with 'Brownfield' or 'Existing businesses'. Stand Up India is strictly for Greenfield (new) projects. Also, the 'One per branch' mandate is a unique administrative target often missed.
Institutional Logic: If you forgot the fact, look at the sector. 'Stand Up India' is for small entrepreneurs. Which institution handles small industries? SIDBI (Small Industries Development Bank of India). NABARD is for rural/agri, NHB for housing. The pairing of Small Biz + SIDBI is logically consistent.
Links to GS-2 (Social Justice): This represents a shift from 'Entitlement-based Welfare' (subsidies) to 'Empowerment-based Agency' (entrepreneurship). Use this as an example of 'Affirmative Action in Economics' in Mains answers.