Small, and Medium-Sized Businesses (SMBs) are vital to the continuing growth and success of the Indian economy. These businesses grow, create employment, and contribute to the vision of Viksit Bharat by 2047 through several initiatives run by the Ministry of MSME and its subsidiary organizations. Providing financial assistance, training for employees, technology upgradation, quality improvement, marketing support, and infrastructure development helps MSMEs and SMBs grow and become more competitive.

Here are some important schemes, their benefits, subsidies, and incentives available under each of the schemes for MSMEs:

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

• Benefit: Provides financial assistance to set up new micro-enterprises in the non-farm sector.
• Subsidy: Subsidy up to 35% of the project cost (up to 25% for urban areas) for general category, and up to 50% (up to 40% for urban areas) for special categories like SC/ST, women, and others.
• Other: Credit linkages with banks, reducing financial hurdles for entrepreneurs.
  Website: [PMEGP] http://www.kviconline.gov.in/pmegpeportal/

2) 2nd Loan for Upgradation of Existing PMEGP/MUDRA Units

• Benefit: Provides additional funding to existing PMEGP or MUDRA units for upgrading and expanding their business.
• Subsidy: Interest subsidy on the loan amount, promoting modernization.
• Other: Encourages the adoption of new technologies and infrastructure. 

   Website: [PMEGP] http://www.kviconline.gov.in/pmegpeportal/

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

• Benefit: Provides collateral-free loans for MSMEs and SMBs, reducing the burden of a mortgage.
• Subsidy: 75% credit guarantee for MSMEs and SMBs with loans up to Rs. 2 crore.
• Other: Guarantees enhance the creditworthiness of small businesses and facilitate easy access to bank finance. 

   Website: [CGTMSE] https://www.cgtmse.in/

4). Micro & Small Enterprises Cluster Development Programme (MSE-CDP) 

• Benefit: Provides financial assistance to SMB clusters for infrastructure development, technology upgradation, and market support.
• Subsidy: Up to 90% subsidy on project cost for infrastructure and technology development.
• Other: Helps to improve production capacity and market reach for small businesses in a cluster. 

   Website: [MSE-CDP] https://www.msecdp.gov.in/

5). Entrepreneurship Skill Development Programme (ESDP) 

• Benefit: Provides training and development programs to help individuals start and manage businesses effectively.
• Subsidy: Financial support for training institutions conducting programs for entrepreneurs.
• Other: Skill development for sustainable self-employment and increasing entrepreneurship awareness. 

   Website: [ESDP] http://www.msme.gov.in/

6). Assistance to Training Institutions (ATI) Scheme 

• • Benefit: Supports institutions offering skill development programs for MSME and SMB employees and entrepreneurs.
  • Subsidy: Financial assistance up to 75% of the cost of setting up training centres.
  • Other: Helps MSMEs and SMBs to upgrade the skills of their workforce, improving productivity. 

   Website: [ATI] http://www.msme.gov.in/

7). Coir Vikas Yojana

• • Benefit: Focuses on the development of the coir industry through financial assistance for technology upgradation, product diversification, and infrastructure improvement.
  • Subsidy: Subsidies for setting up modern coir production units and enhancing the infrastructure in coir-producing areas.
  • Other: Enhances employment opportunities in rural areas, particularly for women. 

   Website: [Coir Vikas Yojana] https://coirboard.gov.in/

8). Procurement and Marketing Support (PMS) Scheme

• • Benefit: Assists in marketing MSME products both domestically and internationally, increasing their market reach.
  • Subsidy: Financial assistance for participating in trade fairs, exhibitions, and promotional activities.
  • Other: Helps MSMEs establish a brand identity and boosts sales through market exposure. 

   Website: [PMS Scheme] https://www.msme.gov.in/

 

9). International Cooperation (IC) Scheme 

• • Benefit: Supports MSMEs and SMBs in international trade by assisting with participation in global events and establishing foreign partnerships.
  • Subsidy: Financial assistance for travel, trade fair participation, and business meets.
  • Other: Promotes export-oriented growth for MSMEs and SMBs and enhances global competitiveness. 

   Website: [IC Scheme] http://www.msme.gov.in/

10). National SC-ST Hub Scheme

• • Benefit: Facilitates the growth of MSMEs and SMBs owned by Scheduled Castes and Scheduled Tribes by offering access to credit and markets.
  • Subsidy: Access to various incentives like credit guarantee schemes and direct procurement from government entities.
  • Other: Focuses on entrepreneurship development and capacity building for SC/ST entrepreneurs. 

   Website: [SC-ST Hub] https://www.msme.gov.in/

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

• • Benefit: Provides financial assistance to rural entrepreneurs for setting up innovative businesses.
  • Subsidy: Grant assistance for infrastructure and technical support to boost rural industries.
  • Other: Encourages rural youth to take up entrepreneurship, promoting innovation in rural areas. 

   Website: [ASPIRE] https://www.msme.gov.in/

12). PM Vishwakarma - Enabling Artisans and Craftspeople to Build Enterprises

• • Benefit: Aim to provide financial and skill development support to artisans and craftspeople.
  • Subsidy: Financial support for modernizing their craft and enhancing product quality.
  • Other: Empowers artisans to expand their reach, innovate, and grow their businesses. 

   Website: [PM Vishwakarma] https://www.msme.gov.in/

13). Tool Rooms and Technical Institutions - A Component of Infrastructure Development & Capacity Building Scheme 

• • Benefit: Provides access to high-end technology, machinery, and training to SMBs.
  • Subsidy: Financial assistance to upgrade tool rooms and technical institutions for better training and production.
  • Other: Aims to develop SMBs by offering cutting-edge technical resources. 

   Website: [Tool Rooms] http://www.msme.gov.in/

14). MSME Champions Scheme

• • Benefit: A multi-faceted scheme that promotes sustainable, innovative, and competitive SMBs through certifications, incubation, and lean practices.
  • Subsidy: Incentives for SMBs to obtain ZED (Zero Defect Zero Effect) certification and improve their operations.
  • Other: Helps SMBs boost productivity and competitiveness, and gain a strong market presence. 

   Website: [MSME Champions] https://www.msme.gov.in/

15). Self Reliant India (SRI) Fund

• • Benefit: Provides financial assistance to MSMEs and SMBs for capital investment in innovative projects and strengthening the local supply chain.
  • Subsidy: Interest rate subsidies and financial assistance for expanding manufacturing capacities.
  • Other: Focuses on making SMBs more competitive by increasing their production capabilities and product quality. 

   Website: [SRI Fund] https://www.msme.gov.in/

16). Raising and Accelerating MSME Performance (RAMP)

• • Benefit: Supports SMBs and MSMEs in upgrading technology, skills, and management processes.
  • Subsidy: Financial assistance for digital transformation, technology adoption, and management improvements.
  • Other: Helps SMBs and MSMEs enhance their competitiveness and become more resilient in a rapidly changing market environment. 

   Website: [RAMP] https://www.msme.gov.in/

17). Design Scheme Under MSME Innovative Scheme

• Benefit: Supports MSMEs with design-related aspects like new product development and improving existing products.
  Subsidy:
• Design Projects: Financial assistance covering 75% (Micro) and 60% (Small & Medium) of costs up to ₹40,00,000, in three stages: strategy (40%), detailed design (30%), and final prototype (30%).
• Design Awareness Program: Workshops and seminars to raise design awareness.
• Other: Helps MSMEs enhance product design capabilities and market competitiveness.
  Website: [Design Scheme] https://innovative.msme.gov.in/

18). Intellectual Property Right (IPR) Scheme

• Benefit: Provides support to MSMEs for intellectual property filings (patents, trademarks, copyrights, designs) and offers advisory services.
  Subsidy:
• Grant of up to ₹1,00,00,000 for setting up IP Facilitation Centres (IPFC).
• Reimbursement for IP registration:
  • Foreign Patent: ₹5,00,000
  • Domestic Patent: ₹1,00,000
  • GI Registration: ₹2,00,000
  • Design Registration: ₹15,000

• Other: Aims to protect MSMEs' innovations and support commercialization through IP.

         Website: [IPR Scheme] https://innovative.msme.gov.in/

19). MSME SAMADHAAN – Delayed Payments to Micro and Small Enterprises

• Benefit: Resolves delayed payments to MSMEs under the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006.
• Subsidy: Not applicable, but helps MSMEs by providing a platform to lodge complaints regarding delayed payments.
• Other: Ensures faster resolution of payment disputes, thus improving cash flow for MSMEs.
  Website: [SAMADHAAN] https://samadhaan.msme.gov.in/

20). TReDS – Bill Discounting Platform

• Benefit: Facilitates MSMEs to unlock working capital by converting their receivables into cash through invoice discounting.
• Subsidy: Not applicable, but provides liquidity support to MSMEs.
• Other: TReDS connects buyers, sellers, and financiers for quick and easy access to working capital.
  Website: [ RXIL ] https://www.rxil.in/

[ INVOICEMART ] https://www.invoicemart.com/

For assistance, MSMEs can contact our SMB Connect office. We’re here to support your growth on a pro bono basis.

This writeup was contributed by CEngg. Shreekant Patil.  Shreekant Patil is a Founder, Consultant, Startup India Mentor (Govt of India Initiative)