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Close to 1 crore MSMEs are registered on the Udyam portal today, employing more than 7.5 crore people, contributing to 45 per cent of India’s exports and roughly 36 per cent of manufacturing. That is how big the Indian MSME Ecosystem is.
To boost it further, the Indian government continues to introduce multiple programmes, grants, schemes, and initiatives, and helps small businesses to grow. If you are a small business in need of knowing the schemes that are right for you, you are at the right place. Here are some of the most impactful schemes that MSMEs can benefit from.
For Funding:
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Pradhan Mantri Mudra Yojana (PMMY): It provides collateral-free loans up to ₹10 lakh to non-corporate, non-farm small enterprises. These MSME loans are categorized into three types: Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh), catering to different stages of business growth.
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Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE): This program provides credit guarantees for collateral-free loans of up to ₹5 crore, a significant relief for small businesses struggling to secure funding. It eliminates the need for third-party guarantees, making it easier for eligible MSMEs to access credit from financial institutions.
- 59-Minute’ MSME Loan Scheme: It helps in getting approval for MSME loans of ₹1 lakh to ₹5 crore in under an hour via the modern PSB portal. No more waiting weeks for business finance.
For Skill development:
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Credit Linked Capital Subsidy Scheme (CLCSS): For businesses looking to upgrade their technology and enhance competitiveness, this is a game-changer. It offers a 15% capital subsidy for loans up to ₹1 crore, encouraging the adoption of modern, state-of-the-art machinery and equipment. This helps MSMEs improve productivity and meet global standards.
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Entrepreneurship and Skill Development Programme (ESDP): The Ministry of MSME offers this program to motivate young people to choose self-employment and entrepreneurship as a career option. It includes Entrepreneurship Awareness Programmes and Management Development Programmes to upgrade the skills of existing and potential entrepreneurs.
- PM Vishwakarma Yojana: It is a comprehensive support for artisans and traditional craftspeople, from easy credit to technology, skill upgradation, and market access.
To further enhance skill development, the Indian government is working on programmes such as Atal Tinkering Labs to foster critical thinking and problem-solving skills essential for the 21st century, setting up National Centres of Excellence for Skilling and centres for Excellence in AI for education to help the sector and youth further.
The Udyam Registration, a simplified and fully digital process, is the gateway to unlocking the benefits of these and many other government schemes. By registering, MSMEs gain official recognition and can seamlessly access a wide range of support programs designed to foster their success.