The Indian government has launched multiple schemes for medium and small enterprises that will help them to boost their growth. As SMEs have gone through a rapid transformation due to the influx of information technology — they need to get on the bandwagon to remain afloat in the market. So, to fulfill the vision, GOI has launched MSME schemes that will affect their working capital to their inventory base.
MSME Schemes for the Indian Businesses
Indian MSMEs contributed 33 percent to the GDP in the fiscal year of 2022-2023. Thus, if the nation wants to be a 5 trillion dollar economy in the upcoming years, we have to invest in the schemes targeted for the MSMEs.
MSME Schemes You Need To Follow
Here are some of the schemes that, as an MSME, you should look out for to grow and support your operations:
1. Digital MSME Scheme:
For the rapid adoption of information communication technology, the GOI has launched this government scheme that will boost the implementation of newer technologies in their respective organization. Therefore, it aims at raising awareness for the MSMEs to adopt and implement ICT technologies to gain an edge in domestic and international markets. All the MSMEs registered under the Udyam scheme are eligible for this scheme. Provision of subsidies and innovation schemes are made available for the easy adoption of the cloud infrastructure for MSMEs. So, a series of knowledge transfer sessions in the form of workshops are conducted to give more information about ICT to MSMEs.
2. Credit Guarantee Fund Scheme For Micro And Small Enterprises:
To strengthen the credit lending system, the Government of India they have launched this scheme because the biggest woes of the MSMEs are due to the lack of credit within the MSME sector. SIDBI created a trust t that will help MSMEs to gain collateral-free loans for their business expansion known as Credit Guarantee Fund Trust for Micro and Small Enterprises. The package for the MSMEs is Rs. 2000 crore as part of the corpus fund.
3. MSME Cluster Development Program:
The government of India launched this scheme for MSMEs to take the cluster approach for the development of this sector: a few of the MSMEs grouped based on similar characteristics. Therefore, it would make it easier to distribute technology for the MSMEs, and skill development will be easier because the individual needs are similar for each organization sharing similar characteristics. It will result in the formation of self-help groups, associations, etc.
4. Prime Minister’s Employment Generation Program:
For every entrepreneur who wants to set up an MSME in the non-farm sector, it will be eligible for the bank-financed subsidy. Also, the margin money is only between 15 to 20 percent for projects up to Rs. 50 Lakhs in manufacturing and Rs. 20 Lakhs in the service sector.
5. National Skill Development Corporation Scheme:
In this government scheme, all the MSMEs registered under the MSME Act are eligible for various courses and counseling. Therefore, it will help in upskilling the existing MSMEs and make them globally competitive. It will create a holistic environment for growth.
These are some of the schemes launched by the Indian government which you can take advantage of and make your business globally competitive.
So Indian government is pretty serious about the upliftment of the Indian MSMEs. They can pave the way for the trillion-dollar economy India Inc. wants in the upcoming future.