Top Indian Government MSME Schemes for Entrepreneurs

Introduction: What is the MSME Scheme?

In India, there are almost 6.3 crore Micro, Small and Medium Enterprises (MSMEs) that are making their active contribution in raising the GDP rate of India by getting involved in the business of trade both at the national and international level. MSMEs have been considered the country’s backbone for improving economic development. Understanding the significance of MSMEs, the Indian government has designed various MSME schemes for new entrepreneurs of the country.

Best MSME Schemes for Entrepreneurs

Prime Minister Employment Generation Scheme: Best Central Government Subsidy Scheme for Small-Scale Industries

The MSME Yojana has been introduced by the Khadi and Village industries commission at the national level for budding entrepreneurs. The aim of introducing this government scheme for MSME is to offer financial assistance to new businesses and existing businesses belonging to the servicing or manufacturing sector by providing subsidy assistance in the bank. The government scheme for entrepreneurs is introduced in the collaboration of KVC directorates, State Khadi and Village industries, and all the states’ banks. If you are in a new business, you are eligible for a subsidy as a loan for new business of up to Rs 10 Lakh. If you start any project under the manufacturing sector, you become eligible for a subsidy of up to Rs 25 Lakhs.

The eligibility criteria to apply for the PMEGP government scheme for MSME is as follows:

• The minimum age to apply for an MSME loan is 18 years.
• The maximum cost of the project must not exceed Rs. 25 Lakhs.
• Only new projects are eligible to avail the benefit of MSME registration scheme.
• If you are starting a new project in the manufacturing sector, it should not exceed Rs. 10 lakh.

Who is eligible for the PMEGP Scheme?

• Self-help groups
• Production cooperative societies
• Charitable trusts
• Institutions registered under Societies Registration Act (1860)

Development of Khadi Village and Coir Industries

There are mainly three MSME government schemes for small-scale industries under this one scheme:

Market Promotion & Development Scheme (MPDA)

This scheme for MSME is a combination of various other schemes implemented by the sector of Khadi. It includes marketing, promotion, publicity, getting assistance in setting up marketing, and market promotion.

Fund Regeneration Scheme of Traditional Industries (SFURTI)

The primary objective of implementing the revamped scheme is to create employment opportunities, equipping traditional artisans, boosting the cluster system of governance, and enhancing marketability.

• Skill Upgradation & Mahila Coir Yojana (MCY)
• Domestic Market Promotion Scheme (DMP)
• Export Market Promotion (EMP)
• Trade and Industry Related Functional Support Services (TIRFSS)
• Coir Industry Technology Upgradation (CITUS)
• Science and Technology (S&T) for Coir industries
• Pradhan Mantri Suraksha Bima Yojana
• Coir Industry Technology Upgradation (CITUS)

The government’s objective for introducing the Coir Vikas Yojana scheme is skill development of artisans and setting up new units in the coir industry. It helps in promoting exports and the domestic market.

Technology Upgradation and Quality Certification – Best MSME Program

The government introduced the MSME scheme to help MSME entrepreneurs keep track of the quality of their products and services. With the help of this scheme, a proper channel is being created to certify the quality and ensure reliable outcomes of the product manufacturing each time. The scheme helps all those looking for upgrading the product concerning resources, technology, and marketing. Under this, there are many sub-schemes for paving the right path in terms of technology and upgrade.

ZED Certification Scheme – Best scheme to offer financial support to MSME in India

The “Make in India” scheme supports local artisans. It helps them get the financial assistance to establish their traditional MSME business in India without compromising the quality of the outcome. The sub-scheme main focus is creating flawless products without reducing any of the waste. It proves to be a great help for MSMEs to increase productivity and ensure the quality of new tools and systems so that quality standards are not compromised at any cost. As far as the MSME registration process is concerned, a manufacturing sector must have a Udyog Aadhaar Memorandum under this scheme.

A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE) – MSME government scheme for small-scale industries

It has been introduced to create new jobs, reduce unemployment, promote the culture of entrepreneurship in India, boost the country’s economic development, and promote innovation that helps strengthen MSME sectors all over the country.

National Manufacturing Competitiveness Programme (NMCP)

• Creation of awareness regarding Intellectual Property Rights (IPR)
• Helping the manufacturing sector to become competitive through QMS & QTT
• Managerial and Entrepreneurial Development of SMEs through Incubators
• Technology and Quality Upgradation Support to MSMEs
• Credit Linked Capital Subsidy for upgrading technology
• Designing of Clinic for Design Expertise to MSMEs
• Leaning of the Manufacturing Competitiveness for MSMEs
• Marketing Support/Assistance to MSMEs (Bar Code)

Under the credit-linked subsidy scheme of the technological upgrade, the government is offering 15% of the assistance on the total cost of investment made in upgrading technology. The investment should not be more than Rs. 1 Crore. More than 7500 products or services related to technology upgrades are part of this government scheme.

Marketing Schemes for MSME

International Cooperation

The MSME business scheme’s main focus is on promoting activities that help the MSME delegates visit other countries to find new areas to expand the business. They may delegate technology upgrades and participate in international exhibitions, buyer-seller meets, and trade fairs.

Marketing Assistance Scheme

The scheme helps MSME entrepreneurs who wish to organise exhibitions or trade fairs outside the country.

Procurement and Marketing Support Scheme (P&MS)

The scheme is introduced to encourage MSEs to develop domestic markets and promote the new initiatives that make market access easier. This scheme helps in better market linkages and the effective implementation of public procurement policies for MSEs, which aids the better development of the business.

Infrastructure Development Programme: Micro & Small Enterprises Cluster Development (MSE-CDP)

This MSME scheme provides financial assistance for establishing the common facility centres, training centres, testing centres, and other R&D required for upgrading the infrastructural facilities.

Entrepreneurship and Skill Development Programme

Under this MSME scheme, the government has started many entrepreneurship development programmes for promoting youth talent so that they are motivated to explore their business skills. It offers skill development training to entrepreneurs.

Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT SME): Best MSME Government Business Loan Scheme

It is one of the most popular schemes launched by the government for MSMEs. Under this scheme, a start-up can get financial assistance up to Rs. 1 crore at the best MSME loan interest rates to establish the business at the national and international levels. The loan is disbursed under the name of trust approved by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and supported by the Ministry of MSME and Small Industries Development Bank of India (SIDBI).

Women Entrepreneurship Scheme

The MSME government scheme is designed especially for women entrepreneurs who want to start their businesses and seek moral and financial support. The government under this scheme will help the women in every aspect, whether by offering women entrepreneur loans, providing training, or giving them tips to manage their business in India.

Pradhan Mantri Mudra Yojana: Popular Central Government Subsidy Scheme for Small-Scale Industries

It is one of the biggest financial assistance schemes launched by the government for entrepreneurs. The MUDRA banks offer an MSME business loan at low rates to micro, small, and medium enterprises. The scheme was introduced in 2015 and within two years, online instant business loans up to 1.8 crore entrepreneurs availed of the benefit under this scheme. Under this scheme, one can apply for business loans up to Rs. 10 lakh.

The Pradhan Mantri Mudra Yojana is divided into three categories:

• Shishu Loan: Loan for new business up to Rs. 50,000
• Kishor Loan: Loan for business up to Rs. 5 lakhs
• Tarun Loan: Avail financial assistance up to Rs. 10 lakhs

Who can apply for the Pradhan Mantri Mudra Yojana?

• Small Manufacturing Units
• Retailers
• Wholesalers
• Artisans

Conclusion

Micro, medium, and small enterprises are gradually boosting India’s economy. The Government of India is working hard to ensure that entrepreneurs get easy and hassle-free business loans in India. Almost Rs. 3 lakh crore collateral-free business loans are given to budding entrepreneurs. MSME schemes play a significant role in boosting the importance of the MSME sector worldwide. With the help of these schemes, now MSMEs do not have to face constraints in getting funds for the smooth running of business operations.