SCHEMES FOR MSMEs

1Introduction

The ‘Make in India’ initiative and the ‘Atmanirbhar Bharat Abhiyaan’ (Self Reliant India Campaign) have played a key role in promoting business and local manufacturing in the country, giving special thrust to Micro, Small and Medium Enterprises (MSMEs), also referred to as the backbone of Indian economy.

The central government has also taken immediate response measures in the form of the Atmanirbhar Bharat Package to ensure continuity of businesses during the COVID-19 pandemic.

Along with these measures, the main governing body for MSMEs in the country, i.e., the Ministry of Micro, Small and Medium Enterprises (M/o MSMEs) also has numerous schemes in place to support the budding manufacturing units across the country.

2Prime Minister Employment Generation Programme and Other Credit Support Schemes

Prime Minister Employment Generation Programme (PMEGP) - Setup with an aim to create employment opportunities for MSMEs in the country, the PMEGP is implemented by Khadi and Village Industries Commission (KVIC) at the national level while at the state and districts level, it is implemented by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE) - Established by M/o MSME and Small Industries Development Bank of India (SIDBI) to provide collateral free loans (up to INR 1 cr) to individual Micro and Small Enterprises (MSEs).

Interest Subsidy Eligibility Certificate (ISEC) - The scheme was introduced as a funding mechanism for khadi programme undertaken by khadi institutions in the country. It mobilises funds from banking institutions with an aim to fill the gaps between availability of funds from budgetary sources and the actual fund requirements.

Source: 1

3Development of Khadi, Village and Coir Industries

Several schemes have been launched for the development of MSMEs operating under the Khadi, Village and Coir Industries in the country. These include the following:

Source: 1

4Technology Upgradation and Quality Certification

Financial Support to MSMEs in ZED Certification Scheme - Supporting the ‘Make in India’ initiative, the aim of the scheme is to inculcate Zero Defect & Zero Effect (ZED) practices in manufacturing done by Indian MSMEs. Under the scheme, the Government of India (GoI) provides up to 80% subsidy to MSMEs.

A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE) – The main objectives of the scheme are to:

National Manufacturing Competitiveness Programme (NMCP) - An umbrella scheme which aids MSMEs through the following sub schemes:

Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
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 Quality Management Standards (QMS) and Quality Technology Tools (QTT)
Building Awareness on Intellectual Property Rights (IPR)

Source: 1

5Other Schemes and Programmes

The M/o MSME also covers many other aspects such as Marketing & Promotion, Skill Development, Infrastructure Development and Policy Research for providing a wholistic framework of schemes to aid MSMEs. This includes the following:

Source: 1