Government Schemes for MSME: Empowering Indian Micro, Small, and Medium Enterprises


Micro, Small, and Medium Enterprises (MSMEs) play a vital role in the economic growth and development of any country. In India, MSMEs contribute significantly to employment generation, export promotion, and overall industrial production. Recognizing their importance, the Indian government has implemented various schemes to support and empower these enterprises. In this article, we will explore some of the prominent government schemes (Learn more about MSME Act!)designed specifically for the MSME sector.

Credit Linked Capital Subsidy Scheme

The Credit Linked Capital Subsidy Scheme (CLCSS) helps MSMEs upgrade their technology and machinery. The scheme provides a capital subsidy of 15% on institutional finance availed by MSMEs for the purchase of approved machinery. This initiative aims to enhance the competitiveness of MSMEs by facilitating their access to modern technology.

Micro Units Development and Refinance Agency (MUDRA) Yojana

The Micro Units Development and Refinance Agency (MUDRA) Yojana focuses on providing financial support to micro-enterprises through various financial institutions. MUDRA offers three types of loans – Shishu, Kishor, and Tarun, catering to different stages of enterprise development. This scheme promotes entrepreneurship by extending credit facilities to the unserved and underserved sections of society.

National Small Industries Corporation (NSIC) Schemes

The National Small Industries Corporation (NSIC) offers several schemes to facilitate the growth of MSMEs. The Single Point Registration Scheme (SPRS) enables MSMEs to participate in government tenders. The Performance and Credit Rating Scheme helps MSMEs enhance their credibility by assessing their performance and providing a credit rating. Additionally, the Raw Material Assistance Scheme (RMA) supports MSMEs in procuring essential raw materials at subsidized rates.

Technology Upgradation and Quality Certification (TEQUP)

The Technology Upgradation and Quality Certification (TEQUP) scheme focus on enhancing the competitiveness of MSMEs by facilitating technological upgradation and quality certification. It provides reimbursement of expenses incurred for acquiring ISO certifications and adopting clean technologies. The scheme promotes the adoption of modern practices, thereby increasing productivity and market access for MSMEs.

Stand-Up India Scheme

The Stand-Up India Scheme aims to promote entrepreneurship among women and individuals from socially and economically disadvantaged backgrounds. Under this scheme, bank loans between INR 10 lakh and INR 1 crore are provided to at least one scheduled caste or scheduled tribe borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.


The Indian government’s focus on the MSME sector is evident through the implementation of these various schemes. By providing financial assistance, technology upgradation, market access, and entrepreneurial opportunities, these government initiatives are driving the growth of MSMEs in India. Through these government schemes for the MSME sector, it will ensure that it will bridge the credit gap in the formal lending sector. It is crucial for MSMEs to stay informed about these schemes and leverage the benefits they offer. As MSMEs continue to thrive, they will contribute significantly to the nation’s economic development, employment generation, and overall prosperity.

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