Introduction

In the dynamic landscape of the Indian economy, Micro, Small, and Medium Enterprises (MSMEs) are the backbone, driving innovation, employment, and economic growth. The Government of India has introduced a wide array of schemes to support, nurture, and empower this vital sector. Whether you are an aspiring entrepreneur with a new business idea or an existing enterprise looking to expand, these schemes offer crucial support in the form of credit, subsidies, technology, skill development, and market access.

This blog post provides a comprehensive overview of key schemes, offering a one-stop resource to help you navigate the opportunities available.

1. Prime Minister’s Employment Generation Programme (PMEGP)

Objective: Encourage new entrepreneurs to set up micro-enterprises through credit-linked subsidy support.

• Key Benefits: Bank-financed subsidy program for setting up new micro-enterprises in the non-farm sector. Margin Money subsidy on Bank Loan ranges from 15% to 35% for projects up to Rs. 25 lakhs in manufacturing and Rs. 10 lakhs in the service sector. For beneficiaries belonging to special categories such as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35% in rural areas and 25% in urban areas.
• Scheme applicable for: Any individual above 18 years of age, SHGs, Charitable trusts, Registered Societies, etc.
• Detailed Information: The beneficiary’s own contribution is 10% for the general category and 5% for the reserved category (SC/ST/OBC/PH/Women/Ex-Servicemen/NER). If the loan application is approved, banks sanction and release 90% to 95% of the total project cost. The online application form on the e-portal is mandatory and mobile-friendly, with SMS/e-mail alerts sent at each stage.
• How to apply: As per the scheme guidelines, you can apply through the PMEGP ePortal.

2. 2nd Loan for upgradation of the existing PMEGP/MUDRA units

Objective: Technology up-gradation and expansion of existing units through credit support.

• Key Benefits: Provides additional financial assistance for the upgradation and expansion of successful units. The maximum subsidy is 15% of the project cost (20% for NER and Hill States).
• Scheme applicable for: Existing well-performing PMEGP/MUDRA units.
• Detailed Information: The maximum project cost for up-gradation is Rs. 1.00 crore for manufacturing and Rs. 25.00 lakh for Service/Trading. The unit must have been profitable for the last three years, and the first loan must have been repaid in the stipulated time. Udyog Aadhar Memorandum (UAM) registration is mandatory. The loan should lead to additional employment generation.
• How to apply: As per the scheme guidelines, a separate application link is provided on the PMEGP e-portal to submit the application.

3. Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)

Objective: Credit support.

• Key Benefits: Provides credit guarantee for loans up to Rs. 2 crore, without collateral and third-party guarantee. Guarantee coverage ranges from 50% to 85% of the sanctioned amount.
• Scheme applicable for: Existing Entrepreneurs & Aspiring Entrepreneurs.
• Detailed Information: This scheme covers collateral-free credit facilities for new and existing Micro and Small Enterprises, including Service Enterprises, up to a maximum of Rs. 200 lakh. The guarantee cover is 85% for micro-enterprises with credit up to Rs. 5 lakhs. It is 80% for enterprises owned by women and all credit facilities up to Rs. 50 lakhs in the North East Region.
• How to apply: You can apply through Member Lending Institutions (Banks and NBFCs).

4. Interest Subvention Scheme for MSMEs-2018

Objective: Credit support.

• Key Benefits: 2% interest subvention for incremental credit to MSMEs.
• Scheme applicable for: Existing Entrepreneurs & Aspiring Entrepreneurs.
• Detailed Information: The scheme offers a 2% interest subvention on fresh or incremental loans up to a maximum of Rs. 1 crore. It covers manufacturing and service enterprises to increase productivity. SIDBI is the nodal agency for implementation.
• How to apply: SIDBI is the Nodal Agency. The scheme is implemented through Member Lending Institutions.

5. Credit Linked Capital Subsidy Component (CLCS & TU Scheme)

Objective: Technology support/Credit Support.

• Key Benefits: Facilitates the induction of established and improved technologies. Provides a 15% subsidy on institutional credit up to Rs. 1.00 crore, with a subsidy cap of Rs. 15.00 lakh.
• Scheme applicable for: Existing Entrepreneurs & Aspiring Entrepreneurs.
• Detailed Information: The scheme provides an upfront subsidy for identified sectors and technologies. To ensure fair inclusion of SC/ST category, women entrepreneurs, and entrepreneurs from NER, Hill States, and Island Territories, the subsidy is also admissible for investment in the acquisition/replacement of plant & machinery.
• How to apply: As per the scheme guidelines, you can apply through a Prime Lending Institution/Nodal Bank.

6. MSME Technology Centres (TCs)

Objective: Technology support, Skill development, and Product Development.

• Key Benefits: Provides design and manufacturing of dies and moulds using the latest technology, helps in prototyping new products, and offers skill development in various fields like Tool Design, CNC Machines, Mechatronics, CAD/CAM, etc.
• Scheme applicable for: Existing Entrepreneurs / Aspiring Entrepreneurs.
• Detailed Information: TCs offer training programs ranging from 2 weeks to 4 years. Customised training programs are also available.
• How to apply: Individuals can apply for training programs through the websites of the respective TCs. MSMEs can approach them directly for moulds, dies, and product development.

7. Procurement and Marketing Support (PMS) scheme

Objective: Marketing Support.

• Key Benefits: Supports the participation of individual MSEs in domestic trade fairs/exhibitions and organises vendor development programs. It also helps in capacity building for modern packaging techniques and the development of marketing ‘Haats’.
• Scheme applicable for: Existing Entrepreneurs.
• Detailed Information: This scheme provides budgetary support for space rent and contingency for participation in domestic trade fairs, with a maximum support of up to Rs. 1.5 lakhs. It also supports Vendor Development Programmes, with a maximum support of Rs. 10 lakhs for a National Level Vendor Development Programme.
• How to apply: Please contact your nearest MSME-Development Institute or District Industry Centre for details on how to apply.

8. International Cooperation (IC) Scheme

Objective: Marketing Support.

• Key Benefits: Provides reimbursement for participation/visit in international exhibitions/fairs and for holding international conferences and seminars.
• Scheme applicable for: Existing Entrepreneurs.
• Detailed Information: The assistance provided includes reimbursement for economy class airfare (up to Rs. 1 Lakh) and stall charges (up to Rs. 1.25 Lakh) for international exhibitions. For organising international conferences in India, the cost is supported up to a maximum of Rs. 4.50 Lakh.
• How to apply: Applications can be submitted by eligible industry associations/organisations to avail the benefits of the scheme.

9. Public Procurement Policy for MSEs Order, 2012

Objective: Providing Marketing support to the MSEs.

• Key Benefits: Provides benefits like free tender sets and exemption from the payment of Earnest Money. MSEs quoting prices within the price band of L1+15% can supply a portion of the requirement by bringing down their price to L1. There are 358 items reserved for exclusive procurement from MSEs.
• Scheme applicable for: The Public Procurement Policy mandates 25% annual procurement from MSEs by Central Ministries/Departments/Public Sector Enterprises (CPSEs).
• Detailed Information: The amended policy mandates 25% of annual procurement from MSEs, including a sub-target of 4% from SC/ST-owned MSEs and 3% from women-owned MSEs. Registered MSEs can register on the Government e-Marketplace (GeM) Portal to avail of these benefits.
• How to apply: Registered MSEs can register themselves on the GeM Portal and avail the benefits.

10. Micro & Small Enterprises Cluster Development Programme (MSE–CDP)

Objective: Technology support/Skill development.

• Key Benefits: Creation of Common Facility Centres (CFCs), including Plug & Play Facilities and Thematic Interventions like training programs and exposure visits.
• Scheme applicable for: Existing Entrepreneurs (in the form of a Special Purpose Vehicle).
• Detailed Information: Provides up to 90% Government of India assistance for a maximum project cost of Rs. 20 crore for CFCs and up to 80% for infrastructure development with a maximum project cost of Rs. 15 crore.
• How to apply: For details, you can contact your nearby MSME-Development Institute/ District Industry Centre.

11. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Objective: Organise traditional industry artisans into clusters by providing Technology Support, Marketing Support, and Skill Development.

• Key Benefits: Supports traditional artisans to provide them with sustainable employment. Government of India support is up to Rs. 2.5 crore for up to 500 artisans and Rs. 5 crore for more than 500 artisans.
• Scheme applicable for: Existing artisans from traditional industries.
• Detailed Information: The Government of India provides 90% (95% in NER, J&K, and Hill Areas) of the Hard Intervention cost and the entire cost of Soft Intervention.
• How to apply: Please contact your nearest MSME-Development Institute or District Industry Centre for details on how to apply.

12. A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)

Objective: Promote Skill Development and Entrepreneurship.

• Key Benefits: Sets up Livelihood Business Incubators (LBIs) and Technology Business Incubators (TBIs) to skill youths for their own enterprises and to promote the incubation of innovative ideas.
• Scheme applicable for: Any agency/institution of the Govt. of India/State Govt. or any Private Institution under PPP mode for LBIs. For TBIs, existing incubation centres, national/regional institutions, and new TBIs can be set up by Industry Associations, Academic Institutions, etc.
• Detailed Information: LBIs train/skill youths in various vocations in the agro-rural space, while TBIs promote youths to incubate new and innovative ideas.
• How to apply: A proposal must be submitted as per the prescribed format given on the scheme’s website.

13. Promotion of MSMEs in NER and Sikkim

Objective: Technology support/Skill development.

• Key Benefits: Supports the establishment and up-gradation of Mini Technology Centres, development of new and existing Industrial Estates, and capacity building of officers.
• Scheme applicable for: Existing Entrepreneurs / Aspiring Entrepreneurs.
• Detailed Information: Provides financial assistance of 90% of the total project cost (up to Rs. 10.0 Cr.) for setting up new and modernising existing Mini Technology Centres.
• How to apply: Proposals are submitted through the State Governments.

14. ZED Certification Scheme

Objective: Technology support.

• Key Benefits: Promotes the adaptation of Quality tools/systems and Energy-Efficient manufacturing. Financial assistance is provided to MSMEs in obtaining ZED certification.
• Scheme applicable for: Existing Entrepreneurs.
• Detailed Information: The scheme aims to encourage MSMEs to manufacture quality products using the latest technology and upgrade their processes. It also aims to develop an ecosystem for Zero Defect Zero Effect Manufacturing to enhance competitiveness and enable exports.
• How to apply: Please refer to the scheme guidelines for application details.

15. Lean Manufacturing Competitiveness for MSMEs

Objective: Technology support.

• Key Benefits: Financial assistance is provided for implementing lean manufacturing techniques, covering 80% of the cost of a lean manufacturing consultant (20% by beneficiaries).
• Scheme applicable for: Existing Entrepreneurs.
• Detailed Information: The scheme aims to enhance the manufacturing competitiveness of MSMEs by reducing waste, increasing productivity, and introducing innovative practices.
• How to apply: Please refer to the scheme guidelines for application details.

16. Design Clinic for Design Expertise to MSMEs

Objective: Technology Support.

• Key Benefits: Facilitates MSMEs in developing new design strategies and products through design interventions and consultancy. Financial assistance is provided for engaging design consultants (GoI contribution @ 75% for micro, 60% for SMEs for projects up to Rs. 40 lakh).
• Scheme applicable for: Existing Entrepreneurs.
• Detailed Information: The scheme brings the manufacturing sector and design expertise together to provide cost-effective solutions for real-time design problems.
• How to apply: MSMEs can submit their proposals to the Implementing Agency (IA) as per the scheme guidelines.

17. Digital MSME

Objective: Technology Support.

• Key Benefits: Motivates MSMEs to adopt Information Communication Technology (ICT) tools and applications in their production and business processes.
• Scheme applicable for: Existing Entrepreneurs.
• Detailed Information: The main objective is to make MSMEs digitally empowered to improve their competitiveness in national and international markets.
• How to apply: Please refer to the scheme guidelines for application details.

18. Entrepreneurial and Managerial Development of SMEs through Incubators

Objective: New Enterprise Creation.

• Key Benefits: Provides funding support up to Rs. 15 lakhs for developing innovative ideas into commercial products and seed funding support up to Rs. 100 lakhs for setting up new units.
• Scheme applicable for: Existing Entrepreneurs/Aspiring Entrepreneurs.
• Detailed Information: The scheme promotes and supports untapped creativity and helps validate ideas at the proof-of-concept level.
• How to apply: Please refer to the scheme guidelines for application details.

19. Awareness on Intellectual Property Rights (IPR)

Objective: Technology support.

• Key Benefits: Provides reimbursement for patents (up to Rs. 5.00 Lakh for a foreign patent), trademarks (up to Rs. 0.10 Lakh), and GI registration (up to Rs. 2.00 Lakh).
• Scheme applicable for: Existing Entrepreneurs.
• Detailed Information: The scheme enhances the awareness of Intellectual Property Rights (IPRs) among MSMEs and provides support for the protection and commercialisation of IP.
• How to apply: For detailed guidelines, refer to the IPR Guidelines.

20. ESDP Scheme

Objective: New Enterprise Creation and Skill Development.

• Key Benefits: Provides motivation, entrepreneurship and skill training, and management training.
• Scheme applicable for: Aspiring Entrepreneurs, Aspiring and Existing Entrepreneurs.
• Detailed Information: The scheme aims to motivate different sections of society, including SC/ST/Women and differently-abled individuals, to choose entrepreneurship as a career. It offers training in various fields like Agro-Based Products, Food Processing, and Mechanical Engineering.
• How to apply: Please refer to the scheme guidelines for application details.

21. Assistance to Training Institutions (ATI) Scheme

• Objective: Skill development.
• Key Benefits:
  • Provides support for infrastructure and capacity building to training institutions of the Ministry of MSME and existing State-level EDIs.
  • Supports skill development programs conducted by the Ministry’s training institutions.
• Scheme Applicable For: Only training institutions of the Ministry of MSME and State-level EDIs.
• Detailed Information:
  • Assistance can be provided for creating or strengthening/expanding infrastructure, including opening new branches or centres.
  • State-level EDIs can receive a maximum assistance of Rs. 250 lakh for the development of physical infrastructure, equipment, faculty training, and research capabilities.
  • A grant is provided to a State-level EDI recommended by the State Government, which must then partner with NIMSME to implement the proposal.
• How to Apply: Based on proposals received from the training institutions of the Ministry of MSME and State-level EDIs.

22. Science & Technology

• Objective: Technology Support.
• Key Benefits:
  • Modernisation of production processes.
  • Development of machinery and equipment.
  • Technology transfer, incubation, and service facilities.
• Scheme Applicable For: Existing and aspiring entrepreneurs.
• Detailed Information:
  • Individuals can access technologies available with the Coir Board by paying a nominal fee.
  • This includes training, incubation, handholding support, and assistance for setting up new units from the Board’s R&D Institutes.

23. Coir Industry Technology Upgradation Scheme

• Objective: Credit support and new enterprise creation.
• Key Benefits:
  • Helps establish new state-of-the-art coir processing units.
  • Provides modern infrastructure to production units.
  • The upper limit of financial assistance is Rs. 2.50 crore.
• Scheme Applicable For: Existing and aspiring entrepreneurs.
• Detailed Information:
  • Aims to provide assistance to entrepreneurs for upgrading or procuring eligible plant and machinery to modernise or establish a new unit.
  • Provides financial assistance of 25% of the total cost of admissible items of ‘plant and machinery’.
  • Units registered with the Coir Board under the ‘Coir Industry’ (Registration) Rules 2008 and having ‘Udyog Aadhar’ are eligible.

24. Skill Upgradation and Mahila Coir Yojana

• Objective: Skill development and new enterprise creation.
• Key Benefits:
  • Provides training to supervisors, instructors, and artisans in the coir industry.
  • Organises EDPs, workshops, and seminars for the development of the coir industry.
  • Includes financial assistance under PMEGP.
• Scheme Applicable For: Existing and aspiring entrepreneurs.
• Detailed Information:
  • Individuals can access technologies available with the Coir Board by paying a nominal fee, including training, incubation, and handholding support for setting up new units from the R&D Institutes of the Board.

25. Export Market Promotion

• Objective: Export Marketing support.
• Key Benefits:
  • Supports participation in international exhibitions and Buyer Seller Meets.
  • Provides External Market Development Assistance.
• Scheme Applicable For: Existing and aspiring entrepreneurs.
• Detailed Information:
  • Individual entrepreneurs can avail the EMDA scheme to participate in international exhibitions as per an approved calendar.

26. Domestic Market Promotion

• Objective: Domestic Marketing Support.
• Key Benefits:
  • Provides Market Development Assistance to apex bodies and PSUs in the coir sector.
  • Facilitates sales of coir products through Coir Board showrooms.
  • Supports publicity for coir products.
• Scheme Applicable For: Existing and aspiring entrepreneurs.
• Detailed Information:
  • Individual suppliers of coir products can register as a consigner to sell their products through Coir Board showrooms across India.

27. Trade & Industry Related Functional Support Services

• Objective: Data and information related support.
• Key Benefits: Dissemination of data on all aspects of the coir industry.
• Scheme Applicable For: Existing and aspiring entrepreneurs.
• Detailed Information:
  • Individuals can access Trade Information data.
  • Individual coir workers can avail of HRD training facilities.

28. Welfare Measures

• Objective: Welfare of workers in the industry.
• Key Benefits: Enrollment of coir workers under Pradhan Mantri Suraksha Bima Yojana (PMSBY).
• Scheme Applicable For: Coir workers.
• Detailed Information: Insurance coverage is extended to all individual workers under PMSBY.

29. MMDA

• Objective: Infrastructure Support, Marketing Support, and Skill Development.
• Key Benefits:
  • Reorients Khadi Institution (KI) activities to increase artisans’ earnings and ensure the quality of Khadi.
  • The Market Development Assistance (MDA) on production helps KIs maintain low inventory levels and mobilise working capital.
• Scheme Applicable For: All KIs and their artisans.
• Detailed Information:
  • MDA is provided to Khadi Institutions at 30% of the prime cost of Khadi and Polyvastra production.
  • 40% of this MDA goes to Khadi artisans and other workers engaged in production activities.

30. ISEC

• Objective: Working capital support to Khadi Institutions.
• Key Benefits:
  • Provides credit at a concessional interest rate.
  • The KI only pays a 4% interest rate, and the difference between the bank’s actual interest rate and 4% is borne by the KVIC as an “Interest Subsidy”.
• Scheme Applicable For: All Khadi Institutions registered with the KVIC or State Khadi and Village Industries Boards (KVIBs).
• Detailed Information:
  • Extends financial assistance to eligible KIs for the development of Khadi and Polyvastra programs.
  • Ensures adequate working funds and liquidity for KIs by utilising banking resources.

31. Work-Shed Scheme for Khadi Artisans

• Objective: To provide a better working environment for artisans.
• Key Benefits:
  • Provides a better workspace for spinners and weavers to work efficiently.
  • Offers more storage and working space for raw materials.
  • Helps improve the efficiency and production of artisans, increasing their earnings.
• Scheme Applicable For: Khadi/polyvastra producing Institutions and Khadi Artisans.
• Detailed Information:
  • Financial assistance is provided to Khadi artisans who belong to the BPL (Below Poverty Line) category.
  • To be eligible, artisans must work for at least 100 days a year.

32. Strengthening of the Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure

• Objective: To revive weak Khadi Institutions.
• Key Benefits:
  • Assists identified weak KIs to regain their status and revive their potential for employment generation.
  • Improves marketing of Khadi products by developing marketing infrastructure, including renovating sales outlets.
  • Aims to transform the Khadi sector and reaffirm its role as a sustainable employment provider for rural artisans.
• Scheme Applicable For: Existing ‘C’ and weak Khadi and Polyvastra Producing Institutions.
• Detailed Information:
  • A detailed study is conducted by a professional agency to ascertain the reasons for the institution’s sickness and suggest corrective actions.
  • The assistance will be implemented for institutions with revival potential.
  • The assisted institution will be tied up with a major local KI for backwards and forward linkages.

33. Rojgar Yukt Gaon

• Objective: For the development of Khadi and the creation of sustainable employment.
• Key Benefits:
  • Aims to transform socio-economically distressed villages into sustainable and self-reliant Khadi-based enterprises.
  • Introduces a business model to strengthen Khadi Institutions.
• Scheme Applicable For: New entrepreneurs or corporate entities in partnership with KIs.
• Detailed Information:
  • Aims to create an additional 12,500 direct jobs in 50 villages.
  • Develops a sustainable Khadi-based business model through a collaborative effort between the Government, businesses, and the village community.
  • Facilitates the overall development of selected villages by improving infrastructure and amenities.

34. Honey Mission Programme / Beekeeping

• Objective: Technology support, skill development, and new enterprise creation.
• Key Benefits:
  • Uplifts people in rural areas by popularising modern beekeeping techniques.
  • Creates sustainable employment and income opportunities for unemployed rural people.
  • Supplements the income of farmers and Adivasis.
• Scheme Applicable For: Farmers, unemployed youth, and interested entrepreneurs.
• Detailed Information:
  • Distributes 10 beehives and bee colonies to each beneficiary.
  • Candidates receive beekeeping training through State Beekeeping Extension Centres, Master Trainers, and CBRTI, Pune.
  • Beekeeping requires low investment and infrastructure, and can be adopted as a full or part-time activity.
  • No requirement for land.

35. Mission Solar Charkha

• Objective: Infrastructure support.
• Key Benefits:
  • 50 solar clusters will be set up with a financial outlay of Rs. 550 crore.
  • Each cluster can have a maximum of 2,000 artisans.
  • Each artisan receives two 10-spindle charkhas.
  • The maximum Government subsidy for each cluster is Rs. 9.60 crore.
• Scheme Applicable For: Promoter Agencies, such as SPV, Section 8 Company, or Producer Company.
• Detailed Information:
  • Existing Khadi and Village Industry institutions can apply if they have a positive balance sheet, an artisan base of at least 200, and a sales turnover of at least Rs. 1 crore in each of the preceding three financial years.
  • Other institutions like SPVs, Societies, Trusts, etc., can also apply if they meet specific criteria.

36. Mahatma Gandhi Institute for Rural Industrialisation (MGIRI)

• Objective: Technology support and skill development.
• Key Benefits:
  • Provides science and technology interventions and innovations for rural industries.
  • Supports networking and collaboration on R&D and technology transfer in the KVI sector.
  • Offers skill and entrepreneurship development training for enterprise development.
• Scheme Applicable For: Existing and aspiring entrepreneurs.
• Detailed Information:
  • Individual entrepreneurs can get help with technology upgradation, product quality improvement, DPR preparation, and product testing.
  • They can also get skill and entrepreneurship development training to set up a KVI enterprise.
  • Entrepreneurs can use portals like ruralhaat.com and Udyamisahayak.com for information on machinery and marketing support.
• How to Apply: You can contact them via email at [email protected].

37. National SC-ST Hub

• Objective: Marketing support.
• Key Benefits:
  • Helps achieve the 4% public procurement target from SC/ST entrepreneurs.
  • Facilitates participation in vendor development programs and provides mentoring support.
  • Distributes trade-specific toolkits to trained candidates.
• Scheme Applicable For: Existing and aspiring SC/ST entrepreneurs.
• Detailed Information:
  • The National SC-ST Hub (NSSH) provides professional support to SC/ST entrepreneurs to help them meet public procurement policy obligations.
  • It works on key areas like vendor development, public procurement participation, capacity building, credit facilitation, and marketing support through various sub-schemes.

Conclusion

The Indian government’s extensive portfolio of schemes for MSMEs demonstrates a strong commitment to fostering a vibrant entrepreneurial ecosystem. By leveraging these programs, entrepreneurs can access much-needed credit, upgrade their technology, enhance their skills, and expand their market reach, both domestically and internationally.

This guide serves as a starting point for your journey. While navigating these schemes and their application processes can be complex, you don’t have to do it alone.

This is where Sigma Solutions can be your strategic partner. With their expertise in IT software solutions, consulting, and digital marketing, they can help you streamline your operations, optimise your business for growth, and guide you through the digital aspects of scheme applications. From automating your workflows to enhancing your online presence, Sigma Solutions provides the support you need to maximise the benefits of these government schemes and propel your business towards a successful and sustainable future.