National Schemes to Support MSMEs in India


The Ministry of MSME (Micro, Small & Medium Enterprises) implements a varied range of schemes or programs for the development and promotion of MSMEs nationally under the chairmanship of Hon’ble Prime Minister Shri Narendra Modi. Additionally, the Government of India has been very proactive in ensuring that all the benefits of these schemes reach out to the MSMEs on time. Numerous announcements (in addition to several MSME schemes) have been made under the Atmanirbahar Bharat Package to offer immediate relief to the MSME sector. The following were also among the most important:

  • MSMEs can borrow up to Rs. 3 lakh crores in collateral-free automatic loans to restart their businesses, buy raw materials, and meet operational liabilities.
  • Amendment of MSME definition to ensure that the sector receives the most benefits.
  • For offering attractive chances for domestic players, global tenders in procurements up to Rs. 200 crores are prohibited.
  • The Government and Public Sector Units (PSUs) must clear MSME debts within 45 days.

The schemes implemented by M/o MSME & its organizations:

  1. Prime Minister’s Employment Generation Programme (PMEGP): The objective is to provide financial assistance to self-employment ventures to generate employment opportunities for unemployed youth and traditional artisans.
  2. 2nd Loan for Up-gradation of the Existing PMEGP/MUDRA Units: The scheme intends to offer expansion aid to the existing units, including financial assistance to well-established performing teams. Furthermore, it will assist entrepreneurs in the present unit with automation and new technology modernization.
  3. Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE): This scheme provides credit guarantee money for third-party guarantee-free/collateral-free loans. It also intends to encourage first-generation entrepreneurs to pursue self-employment.
  4. Credit Linked Capital Subsidy Component (CLCS & TU Scheme): By providing a 15% upfront capital subsidy, the scheme intends to facilitate technology up-gradation in MSEs with state-of-the-art technology, with or without growth, as well as for new MSEs that have set up their facilities (on institutional finance of up to Rs. 1 crore availed by them).
  5. Procurement and Marketing Support (PMS) Scheme: The scheme intends to improve the MSME sector’s marketability of services and products by increasing access to information and raising awareness of several marketing-related subjects. It also raises awareness of e-marketing, the GeM site, GST, and other connected themes, among other things.
  6. International Cooperation (IC) Scheme: The scheme intends to enhance MSMEs’ ability to adapt to technological changes to better market and produce products.
  7. Micro & Small Enterprises Cluster Development Programme (MSE – CDP): The scheme aims to help MSMEs expand by addressing advancements in sustainable and green manufacturing technology, market access, skills & quality, and other factors. It also develops infrastructure in MSE clusters and industrial areas that already exist.
  8. Scheme of Fund for Regeneration of Traditional Industries (SFURTI): The initiative intends to group traditional artisans and industries into clusters to help them achieve long-term sustainability goals by making them more competitive.
  9. Tool Rooms and Technical Institutions- A Component of Infrastructure Development & Capacity Building Scheme: The institutions aim to assist MSMEs by facilitating integrated development of the appropriate industry sector. In total, 18 MSME Tool Rooms & Technical Institutions have been created across India, serving industries like general engineering, foundry & forging, electronics, fragrance, glass, sports goods & footwear, and many others.
  10. Agarbatti Making Project under Gramodyog Vikas Yojana (GVY) Scheme: The initiative intends to revitalize the country’s Agarbatti industry by increasing domestic output and minimizing imports.
  11. Beekeeping Activity under Gramodyog Vikas Yojana (GVY) Scheme: The objective is to provide an additional source of income for beekeepers & farmers, utilize the available natural resources in beekeeping, create sustainable employment for them, and increase public awareness of honey & other hive products, as well as the advantages of beekeeping in cross-pollination.
  12. Pottery Activity under Gramodyog Vikas Yojana (GVY) Scheme: The scheme aims to increase the income of pottery artisans by enhancing production and technical know-how by offering the latest equipment and skill development training. It also lowers production costs and develops market links with exports & large buying houses.

For detailed information on more schemes, please click here.


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