Top schemes of government for MSME you need to know

Business Finance

MSMEs are considered to be the backbone of the Indian economy. The MSME sector is approximately one-third of the country’s GDP (Gross Domestic Product). According to government data, it employs 11 crores of Indians. It also contributes to nearly half of the country’s manufacturing output. For this reason, the government of India runs many schemes to help the MSME sector thrive.

If you are someones who runs an MSME, or works in one, this is for you. Take a look at government schemes for MSME which help in skill development or provide financial aid. In this article, we are going to take a look at 10 such government schemes for MSME.

Top 10 Government Schemes For MSME

1. Prime Minister Employment Generation Programme (PMEGP)

The PMEGP scheme provides financial assistance for self-employment. Its goal is to create sustainable employment opportunities. The unemployed youth and traditional artisans in rural and urban areas of India can benefit from this scheme. If you qualify under this scheme, the government will provide subsidized loans to you. The government will also provide EDP training, awareness camps, etc. to you.

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

Under this scheme, you, as an entrepreneur, can get a loan of up to INR 2 crores without any third-party guarantee or collateral. This is meant to motivate first-generation entrepreneurs to create self-employment opportunities.

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

This scheme leverages common facility centers to create better infrastructure for clusters of MSMEs. It addresses advancement in green technology and promotes sustainability. It provides financial assistance of up to INR 15 crores for infrastructural development.

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

This scheme is trying to set up traditional artisans and industries into clusters. In the long run, this is supposed to help them self-sustain. A financial support system of up to INR 5 crores has been set up in place for this scheme. If you are one such organization, you can use this money to upgrade to modern machinery, buy raw materials, and even digitize your business. Furthermore, an additional INR 25 lakh is provided for training purposes.

5. Entrepreneurship and Skill Development Programme (ESDP) Scheme

This skill will help you in capacity building for your MSME. It is particularly designed to help minority communities such as SC/STs, women, the differently abled, ex-servicepersons, those living below the poverty line, etc. It is one of the few schemes that apply to agro-based industries as well. If you run an agro-based MSME or one that deals with food processing, etc. this scheme can help you.

6. Assistance to Training Institutions (ATI) Scheme

This scheme helps build training institutes that will further empower you to improve your MSMEs. These institutes provide training for skill development for people that work in the MSME sector. The programs are designed by the MSME ministry. Financial assistance of up to INR 300 lakhs is also a part of this scheme.

7. Procurement and Marketing Support (PMS) scheme

If you find it difficult to market your products, this scheme is for you. It aims to improve the marketability of MSMEs. Under this scheme, MSMEs participate in international fairs, trade fairs, exhibitions, etc. Thus, they can take their products directly to consumers and increase their business.

8. International Cooperation (IC) Scheme

This scheme is similar to the last one, but it’s mainly aimed at improving exports. It will help you participate in trade fairs, expos, etc. abroad. Thus, you can market your product outside of India. By competing with organizations worldwide, you will also learn about newer technologies and processes. This will help you advance the workings of your own MSME.

9. ZED Certification Scheme

ZED stands for Zero Defect & Zero Effect. This is one of those government schemes for MSMEs that looks at the bigger picture. Zero defect here means your MSME will manufacture quality products. Zero effect here means it will do so without damaging the environment. An individual or organization that earns this certification will be awarded many benefits including a joining bonus and subsidies. This scheme aims to take the Make in India initiative forward sustainably.

10. Lean Manufacturing Competitiveness for MSMEs

Lean manufacturing techniques include better productivity, good management systems, reducing waste, and maintaining continuous improvement. This scheme uses the application of these techniques to encourage competitiveness between MSMEs. You may also have to compete with others to qualify for one of these government schemes for MSME.

11. MSME – Innovative (Incubation, IPR and Design)

This scheme aims to promote innovation. It does so by developing better designs for marketing and production. It helps you commercialize your product while maintaining your intellectual rights over them. It is one of those government schemes for MSME that connects academia to industries, thus pushing for innovation. It encourages students and funds their projects. The scheme subsidizes patenting innovation and makes the entire process smoother overall.

12. Digital MSME

This scheme will help you adapt to the new digital age. It encourages you to adopt new digital tools and processes. The adoption of new digital technologies often helps reduce costs and improve efficiency. This scheme provides access to new software. It helps in the automation of processes involved.


The Government of India is betting large on the MSME sector. To ensure it succeeds, there are many more government schemes for MSMEs that are currently active. In this article, you have been introduced to the top 12 run by the central government. However, many state government schemes for MSMEs are also there which you can leverage.

If you do not qualify as an MSME but still require financial assistance, a personal loan may be the best option for you. Piramal Finance is one such organization that can help you acquire such a loan. To further learn about the process, please visit the personal loan section on their website.