Government Schemes for MSMEs in India

Under the Chairmanship of Hon'ble Prime Minister Shri Narendra Modi, the Ministry of Micro, Small and Medium Enterprises (MSME) implements various programmes/ MSME schemes for the development and promotion of MSMEs across the country.

Moreover, the Government of India has been really proactive to ensure that all the benefit of these MSME schemes reaches to the MSMEs in time. To provide immediate relief to the MSME sector, various announcements (in addition to the various MSME schemes) have been made under the Atmanirbahar Bharat Package. The most important ones also included:

INR 3 lakh crore collateral-free automatic loans for MSMEs to buy raw material, meet operational liabilities and restart businesses
Revision of MSME definition to extend maximum benefits to the sector
Disallowing global tenders in procurements upto INR 200 cr to create attractive opportunities for domestic players
Clearing of MSME dues by the Government and Public Sector Units (PSUs) within 45 days

Note from the CEO

Every tomorrow of India is better than today, and India is rolling out the red carpet to welcome investors to its shores. Invest India will be your trusted partner at every step throughout your investment journey in India.

Shri Deepak Bagla
MD & CEO, Invest India

About MSMEs

MSMEs have played crucial role in generating huge employment opportunities at comparatively lower capital cost than large industries. Moreover, they have helped in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth.

Revised Classification applicable w.e.f 1 July 2020
Composite Criteria: Investment in Plant & Machinery/equipment and Annual Turnover
Classify	Micro	Small	Medium
Manufacturing Enterprises and Enterprises rendering Services	Investment in Plant and Machinery or Equipment: Not more than INR 1 cr and Annual Turnover; not more than INR 5 cr	Investment in Plant and Machinery or Equipment: Not more than INR 10 cr and Annual Turnover; not more than INR 50 cr	Investment in Plant and Machinery or Equipment: Not more than INR 50 cr and Annual Turnover; not more than INR 250 cr

Scheme 1: Prime Minister Employment Generation Programme and Other Credit Support Schemes

Prime Minister Employment Generation Programme (PMEGP)

PMEGP scheme aims to create employment opportunities for the MSMEs in the country. This MSME scheme is being managed by Khadi and Village Industries Commission (KVIC) at the national level and being implented by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks at the state and districts level

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)

Ministry of MSME and SIDBI has jointly established the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement Credit Guarantee Scheme for MSEs. The corpus of CGTMSE is contributed by GoI and SIDBI.

Interest Subsidy Eligibility Certificate (ISEC)

The Interest Subsidy Eligibility Certificate (ISEC) Scheme has been introduced to mobilise funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from budgetary sources.

Read more about the MSME scheme

Scheme 2: Development of Khadi, Village and Coir Industries

Market Promotion & Development Scheme (MPDA)

This MSME scheme is an amalgamation of different MSME schemes implemented by the Khadi sector including publicity, marketing, market promotion and marketing development assistance.

Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

The main objectives of the SFURTI scheme is to organise traditional industries, provide sustained employment, enhance marketability, equip traditional artisans and further boost the governance cluster systems.

Coir Vikas Yojana (CVY)
- Coir Industry Technology Upgradation Scheme (CITUS)
- Science and Technology (S&T) for Coir
- Skill Upgradation & Mahila Coir Yojana (MCY)
- Export Market Promotion (EMP)
- Domestic Market Promotion Scheme (DMP)
- Trade and Industry Related Functional Support Services (TIRFSS)
- Welfare Measures (Pradhan Mantri Suraksha Bima Yojana (PMSBY))

CVY aims to promote skill development of artisans for modernization, upgradation and establishment of new units under Coir Industry Technology Upgradation Scheme (CITUS) and further promotion of the domestic as well as export market.

Read more about the MSME scheme

Scheme 3: Technology Upgradation and Quality Certification

Financial Support to MSMEs in ZED Certification Scheme

The scheme aims at supporting & promoting the Make in India initiative, achieving Zero Defect & Zero Effect practices in manufacturing processes and ensure continuous improvement.

A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

This MSME scheme aims to create new jobs and reduce unemployment, promote entrepreneurship culture in India, boost economic development, facilitate innovative business solution for un-met social needs, and promote innovation to further strengthen the competitiveness of the MSME sector.

National Manufacturing Competitiveness Programme (NMCP)
- Credit Linked Capital Subsidy for Technology Upgradation
- Marketing Support/Assistance to MSMEs (Bar Code)
- Lean Manufacturing Competitiveness for MSMEs
- Design Clinic for Design Expertise to MSMEs
- Technology and Quality Upgradation Support to MSMEs
- Entrepreneurial and Managerial Development of SMEs through Incubators
- Enabling Manufacturing Sector to be Competitive through QMS&QTT
- Building Awareness on Intellectual Property Rights (IPR)

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Scheme 4: Marketing Promotion Schemes

International Cooperation

This MSME scheme covers activities such as visiting of MSME delegations to other countries for exploring new areas of technology infusion/upgradation, participating in international exhibitions, trade fairs and buyer-seller meets in foreign countries

Marketing Assistance Scheme

This MSME scheme provides assistance for the activities such as organising exhibitions abroad and participating in international exhibitions/ trade fairs, organising buyer-seller meets, intensive campaigns and other marketing promotion activities

Procurement and Marketing Support Scheme (P&MS)

This MSME scheme aims to encourage MSEs to develop domestic markets and promotion of new market access initiatives, to facilitate market linkages for effective implementation of Public Procurement Policy for MSEs and educate MSMEs on various facets of business development.

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Scheme 5: Entrepreneurship and skill Development Programme

Entrepreneurship Skill Development Programme (ESDP)

This aims to organise Entrepreneurship Development Programmes on a regular basis to nurture the talent of youth by bulding their capacity on various aspects of industrial activity required for setting up MSEs.

Assistance to Training Institutions (ATI)

This MSME scheme aims to provide capital grant to the training institutions at country level which are operating under the Ministry of MSME for the purpose of creation and strengthening of infrastructure and support for entrepreneurship and skill development training/ capacity building programmes.

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Scheme 6: Infrastructure Development Programme

Micro & Small Enterprises Cluster Development (MSE-CDP)

This MSME scheme provides financial assistance for establishment of Common Facility Centres (CFCs) for testing, training centres and other R&D and to create/ upgrade infrastructural facilities (IDs) in the new/ existing industrial areas/ clusters of MSE’s.

Read more about the MSME scheme