Production Linked Incentives Schemes in 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 generate employment opportunities in both rural and urban areas for the MSMEs through setting up of new self-employment projects in the country. This MSME scheme is being managed by Khadi and Village Industries Commission (KVIC) at the national level and being implemented 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 the Government of India and SIDBI.

  • Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)

To facilitate technology to MSEs through institutional finance for induction of well established and proven technologies in the specific and approved 51 sub-sector/products. Both upgradation projects (with or without expansion) and new projects are eligible.

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)

Read more about the MSME scheme

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.

Read more about the MSME scheme

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.

Read more about the MSME scheme

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

Scheme 7: Scheme of Surveys, Studies and Policy Research

  • Access revised guidelines of scheme of SS&PR effective from 15 October 2018 here

Scheme 8: National SC-ST-HUB

  • Access the National SC-ST-HUB guidelines here

Scheme 9: Scheme of Information, Education and Communication

  • Access the guidelines of IEC Scheme here

Scheme 10: Scheme of Fund for Regeneration of Traditional Industries (SFURTI) 

  • The major objectives of the SFURTI scheme are to organize the traditional industries and artisans into clusters, provide sustained employment, enhance marketability of products, strengthen the cluster governance system, make a paradigm shift from a supply driven selling model to a market driven model and make substantial investment in the area of product design and quality improvement. Access the revised guidelines for SFURTI here

Scheme 11: A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)

  • The major objectives of the ASPIRE scheme are to set up business incubation centres to set up business and innovation incubators, promote entrepreneurship and generate employment. A fund of funds has been setup for investing in startups and early stage enterprsies to promote innovation. Access the revised guidelines for ASPIRE here