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Introducing MSME Subsidies: A Comprehensive Guide

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the economic growth and employment generation of any country. Recognizing their importance, the Indian Government has introduced various subsidies and support schemes to boost the MSME sector’s development and ensure its sustained progress.

These subsidies aim to promote entrepreneurship, innovation, market access, skill development, and financial assistance, among other essential aspects that contribute to the success and competitiveness of MSMEs.

In this guide, we have provided a comprehensive overview of the different MSME subsidies available to entrepreneurs, businesses, and individuals seeking to establish or grow their ventures.

From financial aid and technical assistance to capacity building and market development, these subsidies cater to a wide range of needs and help create a supportive ecosystem for MSMEs to thrive. The information presented here is intended to serve as a helpful resource for understanding the various schemes and their eligibility criteria, benefits, and application process.

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Read on to learn more about these subsidies and discover how they can help you achieve your business goals and contribute to India’s economic growth.

Subsidy NameBenefitsEligibilityHow to Apply
Prime Minister’s Employment Generation Programme (PMEGP)Financial assistance, sustainable employment, credit linked subsidyIndividuals above 18 years of age
Second Loan for upgradation of existing PMEGP/REGP/MUDRA unitsFinancial assistance for expansion and upgrading existing unitsExisting well-performing PMEGP/REGP/MUDRA units
Credit Guarantee Scheme for Micro & Small Enterprises also known as CGTMSECredit guarantee up to Rs. 2 crores without collateral or third party guaranteeExisting and aspiring entrepreneursApply through Member Lending Institutions;
Micro & Small Enterprises Cluster Development Programme Scheme (MSE CDP)Creation of CFCs, support for Infrastructure Development ProjectsExisting entrepreneurs (in the form of SPVs)
Scheme for the Regeneration of Traditional Industries Fund also known as SFURTI Up to Rs. 2.55 cr. support. Production facility with advanced machinery. Raw material support. Soft Interventions. Skills Development. Exposure Visits. BuyerSeller Meets. Marketing connections, ecommerce. Design assistance Existing artisans from traditional sectors such as Handicraft, Textile, AgroProcessing, Bamboo, Honey, Coir, Khadi, etc.Apply at
Entrepreneurship and Skill Development Programme (ESDP) Scheme Encourage new enterprises. Capacity building of existing MSMEs. Foster an entrepreneurial culture Aspiring and existing entrepreneursApply through websites of MSMEDFOs, MSMETC and other Implementing Agencies under ESDP scheme. Scheme links:.
Assistance to Training Institutions (ATI) Scheme Entrepreneurship Awareness Programme (EAP). Entrepreneurship cum Skill Development Programme (ESDP). Advance ESDP. Management Development Program (MDP). Advance MDPExisting State level EDIs and Institutions of the Ministry of MSME.Send applications to the Director/Deputy Secretary (EDI), Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, Rafi Marg, New Delhi – 110 011
Coir Vikas Yojana (CVY)Develop coir industry, improve machinery & processes, support exports, empower rural womenCoir production/processing units with valid Udyam Registration Certificate
Procurement and Marketing Support (PMS) SchemeMarket access, capacity building, retail outlet development for GI productsManufacturing/ Service Sectors MSEs with valid Udyam Registration
International Cooperation (IC) SchemeSupport participation in international events, reimburse costs for first time MSE exportersVaries by subcomponent; see guidelines for details
Khadi Udyog Yojna Subsidy on prime cost of Khadi products. Interest subsidy on loans. Workshed support Khadi Institutions (KIs). Khadi artisansApply on:
Gram Udyog Yojna Training in various industries Rural artisans. Age group: 1855 years. Aadhar Card or valid ID. One person per family. SC/ST/Women preferredApply on: http://www.kvico
National SC-ST Hub Scheme Up to 25% subsidy on plant, machinery, and equipment. Marketing and mentoring support. Reimbursements for various fees. Free skill training and trade specific tool kit distribution Aspiring and existing SC/ST entrepreneursVisit:
ASPIRE Scheme Up to INR 1 crore for plant and machinery procurement. Operational expenditure support Government/State agencies/institutions. Industry associations. Academic institutions. Not For Profit private institutions (conditions apply)Apply at:
Khadi Gramodyog Vikas Yojana Enhanced productivity and wages for Khadi artisans. Improved infrastructure for Khadi production. Increased sales and employment. Development of rural artisans and village industries. Khadi Institutions (KIs) and Khadi artisans. One person per family. Preference given to SCs/STs/women/unemployed youth/BPL individualsApply at:
Promotion of MSMEs in NER & SikkimCommon facilities, infrastructure development, support for tourism sectorState Govt. or State Govt. organizations promoting MSMEsSubmit proposals at
Tool Rooms and Technical InstitutionsAccess to tooling facilities, skilled personnel, process & product development, consultancyIndustrial units (focusing on MSME sector), individuals with varying educational backgroundsApply online at the given URL or visit the website of the concerned Tool Room & Technical institution
MSME Champions SchemeZED Certification, innovative support, lean & digital components (to be launched)All MSMEs registered with the UDYAM registration portal (of the MoMSME)Apply online at
MSME Innovative (Incubation, IPR, and Design)Financial support for incubation, design projects, and IPR registrationMSMEs, individuals, students (for incubation); registered MSMEs (for design & IPR)Apply via the MIS portal (
Credit Guarantee Scheme for Subordinate Debt (CGSSD)Subordinate debt to sustain and revive stressed MSMEsOperational MSMEs stressed and classified as NPAs as of April 30, 2020, and standard as of November 1, 2016Approach participating banks, contact loan lending bank branch, CEO, CGTMSE, SIDBI, Mumbai; or download scheme guidelines from the given URL
Self Reliant India (SRI) Fund Growth capital for MSMEs. Economic growth support. Foster national/international champions Viable MSMEs with growth plansThrough State Government/Agencies
Raising and Accelerating MSME Performance (RAMP) Technology upgradation. Market access. Credit support. Institutional strengthening MSMEs requiring market, finance, and technology accessThrough State Government/Agencies

Subsidy Name: Prime Minister’s Employment Generation Programme (PMEGP)

The PMEGP is designed to provide financial assistance for establishing self-employment ventures and generating sustainable employment in both rural and urban areas. The objective of this initiative is to generate ongoing job prospects for both rural and jobless young individuals, as well as conventional craftspeople, in order to avoid the need for occupational relocation.


  • Credit-linked subsidy program for establishing new micro-enterprises in the non-farm sector.
  • The program offers a margin money subsidy ranging from 15% to 35% of the project cost for projects up to Rs. 50 Lakh in the manufacturing sector and Rs. 20 Lakh in the service sector.
  • In the case of special category beneficiaries, the margin money subsidy is set at 35% in rural areas and 25% in urban areas, respectively.


  • Individuals above the age of 18 years can apply for the Subsidy.


  • The beneficiary’s contribution is 10% of the project cost for the General category and 5% for the Special category.
  • Approved loan applications result in banks sanctioning and releasing 90 to 95% of the total project cost for setting up units.
  • Support services include Backward & Forward Linkages through workshops, EDP training, exhibitions, etc.
  • Online applications are mandatory and available on the e-portal, which also offers Model Project Reports.
  • Measures have been taken to increase the registration of MSMEs through the adoption of the Udyog Aadhar Memorandum (UAM)/UDYAM Registration.

How to Apply:

Visit to apply.

Subsidy Name: 2nd Loan for up-gradation of existing PMEGP/REGP/MUDRA units

This scheme aims to provide financial assistance for expanding and upgrading existing units, as well as adopting new technology and automation to modernize them.


  • The maximum subsidy available for the project cost is capped at 15%, except for those in the North Eastern Region (NER) and Hill States, where the limit is set at 20%

  • The remaining project cost balance is provided by banks as term loans.


  • Existing well-performing PMEGP/REGP/MUDRA units.


  • The maximum project cost for upgrading Manufacturing and Service/Trading sectors is Rs. 1.00 crore and Rs. 25.00 lakhs, respectively.
  • To be eligible, units must be making profits for the last three years and have repaid their first loan within the stipulated time.
  • Beneficiaries can apply to the same financing bank or another bank willing to extend credit for the second loan.
  • Udyog Aadhar Memorandum (UAM)/UDYAM Registration is mandatory.

How to Apply:

Visit to apply.

Subsidy Name: Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)

The program aims to support first-generation entrepreneurs in pursuing self-employment opportunities by facilitating collateral-free or third-party guarantee-free loans to MSEs, along with credit guarantee support.


  • Loans up to Rs. 2 crores can be availed with a credit guarantee, which doesn’t require collateral or a third-party guarantee.
  • Guarantee coverage varies depending on the type of enterprise, with a maximum of 85% for micro-enterprises up to Rs. 5 lakhs, 75% for others, and 50% for retail activities.


  • Existing and aspiring entrepreneurs.


  • Collateral-free credit facilities up to Rs. 2 crore for new and existing MSEs, including Service Enterprises, are eligible for a guarantee under the scheme.
  • The program offers guarantee cover ranging from 50% to 85% of the sanctioned amount of the credit facility.
  • The trust resolves the claim for credit facilities up to Rs. 2 crore in case of default, providing coverage up to 75% of the defaulted amount.

How to Apply:

  • Apply for the program through Member Lending Institutions, including Banks and NBFCs.
  • For detailed guidelines, visit

Subsidy Name: Micro & Small Enterprises Cluster Development Programme (MSE-CDP) Scheme

The MSE-CDP aims to support the growth and sustainability of MSEs by addressing common issues such as technology improvement, skill development, quality enhancement, and market access.The program also focuses on the development and enhancement of infrastructural facilities in Industrial Areas/Clusters of MSEs, and the establishment of Common Facility Centers (CFCs) for various production processes such as testing, training, raw material depots, and effluent treatment. Additionally, the program promotes green and sustainable manufacturing technology for clusters.


  • Creation of CFCs, including Plug & Play Facilities.
  • Infrastructure Development Projects, including Flatted Factory Complexes, are eligible for support under the program.


  • Existing entrepreneurs in the form of Special Purpose Vehicles (SPVs).

Detailed Information:

  • Common Facility Centers, including Production/Processing Centers, Design Centers, and Testing Facilities, are tangible assets that are supported by the program, including Plug & Play Facilities. The Government of India provides assistance of up to 80% of the maximum project cost of Rs. 30 crores.
  • Infrastructure Development: This includes land development, road construction, drainage, and power distribution in new or existing industrial (multi-product) areas/estates/Flatted Factory Complexes. The Government of India offers assistance of up to 70% of the maximum project cost of Rs. 15 crores.

How to Apply:

Visit to apply.

Subsidy Name:(SFURTI) Scheme for the Regeneration of Traditional Industries Fund

  • The program encourages the formation of collectives for traditional industries and artisans to boost production, value addition, and competitiveness.
  • Promote traditional sectors, increase artisans’ income, and provide sustainable employment
  • Government of India support:
  • Up to Rs. 2.5 cr. for up to 500 artisans
  • Rs. 5 cr. for over 500 artisans
  • Establishment of a production facility with advanced machinery
  • Raw material support
  • Soft Interventions – up to Rs. 25 lakhs
  • Skills Development
  • Exposure Visits
  • Buyer-Seller Meets
  • Marketing connections, e-commerce
  • Design assistance

Scheme applicable for:

  • The program also supports current artisans from traditional sectors such as Handicraft, Textile, Agro-Processing, Bamboo, Honey, Coir, Khadi, etc

Detailed Information:

  • Implementing Agencies, such as State/Central Govt. organizations and NGOs, can aid artisans in creating Special Purpose Vehicles (SPVs) that offer land and 10% (5% in NER, J&K, and Hill Areas) of Hard Intervention.
  • Financial aid for Hard Intervention costs, Soft Intervention costs, Technical Agency fees, and Implementing Agency fees are provided by the Government of India at a maximum of 90% (95% in NER, J&K, and Hill Areas).

How to apply:

Subsidy Name:Entrepreneurship and Skill Development Programme (ESDP) Scheme

  • Encourage establishment of new enterprises, capacity building of existing MSMEs, and promote entrepreneurship culture in India.
  • Expand the base of entrepreneurship through development, achievement, motivation, and entrepreneurial skill for various society sections

Scheme applicable for:

  • Aspiring and Existing Entrepreneurs

Assistance to Training Institutions (ATI) Scheme

Detailed Information:

  • Entrepreneurship Awareness Program (EAP) – A one-day training course aimed at raising awareness and motivation for entrepreneurship and self-employment as career options among various segments of society, including SC/ST/Women, differently-abled individuals, ex-servicemen, and BPL persons.

  • Entrepreneurship and Skill Development Program (E-SDP) – A six-week training course that combines entrepreneurship and skill training in diverse sectors such as Agro-Based Products, Hosiery, Food & Fruit Processing Industries, Carpet Weaving, Mechanical Engineering Workshop/Machine Shop, Heat Treatment, Electroplating, Basic/Advanced Welding/Fabrication/Sheet Metal Work, Basic/Advanced Carpentry, Glass & Ceramics, and more.
  • Advanced E-SDP: A one-week specialized training program provided through renowned institutions such as IIMs, IITs, ICAR, CSIR, BARC, IISC, NIT, and Agricultural Universities of Central and State governments. The Advanced E-SDP builds upon the skills and knowledge acquired in the basic E-SDP.

  • The Management Development Program (MDP) is a one-week training course aimed at improving the managerial abilities of current entrepreneurs and their supervisory personnel. The program addresses various topics, such as Industrial Management, Human Resource Management, Marketing Management, Export Management/Documentation & Procedures, Materials Management, Financial/Working Capital Management, Information Technology, Digital Marketing,WTO, IPR, Quality Management/QMS/ISO 9000/EMS, Logistics Management, Supply Chain Management, Retail Management and more.
  • Advanced MDP: A one-week specialized training program provided through State Administrative Training Institutes (ATIs) or other reputable institutions affiliated with Central or State Governments, NITs, Regional Engineering Colleges, Agricultural colleges, or Autonomous bodies of Central/State Governments. The Advanced MDP focuses on further developing the skills and knowledge gained in the basic MDP.

Coir Vikas Yojana – Comprehensive Program

Coir Vikas Yojana (CVY) is a comprehensive initiative led by the Coir Board to foster growth in the coir industry across India. The program aims to:

  • Boost raw material usage and achieve economic production
  • Raise income for workers, entrepreneurs, exporters, and stakeholders
  • Maximize the market potential for products domestically and internationally
  • Develop advanced equipment, machinery, and new products
  • Encourage large-scale investment in the industry
  • Enhance skill development, empower rural women, and generate employment
  • Implement welfare measures for coir workers
  • Upgrade the coir industry via technological advancements and digital integration

The Coir Board oversees the following subprograms under CVY:

  1. Science & Technology: This component focuses on modernizing production processes, machinery and equipment development, product diversification, eco-friendly technology, technology transfer, incubation, and testing and service facilities.
  2. Skill Upgradation and Mahila Coir Yojana: This includes skill upgradation through Entrepreneurship Development Programs, workshops, seminars, and awareness programs. Mahila Coir Yojana aims to train and provide self-employment opportunities for rural women artisans in coconut-producing areas.
  3. Export Market Promotion: Activities include international exhibition participation, publicity, and support through Export Market Development Assistance Scheme/International Cooperation Scheme.
  4. Domestic Market Promotion: This involves showcasing and selling coir products through showrooms and sales depots, participation in domestic exhibitions, exclusive fairs, and Market Development Assistance (MDA) distribution to coir cooperatives and public-sector units.
  5. Trade and Industry-Related Functional Support Services: These activities include information gathering, analysis, and report preparation and publication.
  6. Welfare Measures: The Coir Board plans to introduce new welfare schemes for coir workers, replacing the Pradhan Mantri Suraksha Bima Yojana (PMSBY).

Eligibility: All coir production/processing units registered under the Coir Board with a valid Udyam Registration Certificate.

Application: Visit the Coir Board website at for scheme details.

Procurement and Marketing Support (PMS) Scheme

The PMS program focuses on encouraging new market access strategies, informing MSMEs about packaging, import-export regulations, the GeM portal, MSME Conclave, and other essential market access growth subjects.

Scheme Components: Market Access, Capacity Building, and Development of Retail Outlet

For detailed information, refer to PMS Scheme guidelines at

Eligibility: Manufacturing/Service Sector MSEs with valid Udyam Registration Certificate

Application: Apply at

International Cooperation (IC) Scheme

This scheme focuses on enhancing MSME capacity for export market entry by facilitating participation in international events and providing market intelligence and reimbursement for export-related costs.

This program consists of three sub-elements: Market Development Support for MSMEs, Building Capacity for First-Time MSE Exporters, and a Framework for Disseminating International Market Intelligence.

Eligible Organizations for Sub-Component-I: Qualified Organizations for Sub-Component-I include the Ministry of MSME and its agencies, state/central government organizations/institutions, and registered industry/enterprise associations.

Activities covered under Sub-Component-I: MSME delegation participation in international events (physical and virtual modes), organization of international conferences, summits, workshops, and seminars in India (physical and virtual modes), and mega international events organized by the Ministry of MSME.

Sub-Component-II: Reimbursement of incidental costs for first-time MSE exporters, including RCMC fees, export insurance premium, and testing and quality certification. The Ministry has signed MoUs with 18 Export Promotion Councils (EPCs), Export Credit Guarantee Corporation Ltd (ECGC), and National Small Industries Corporation Ltd (NSIC) as implementing agencies for these reimbursements.

For more in-depth information, refer to this guidelines at

How to apply: Apply at

National SC-ST Hub Scheme: Comprehensive Overview

The National SC-ST Hub Program aims to provide specialized guidance to Scheduled Caste and Scheduled Tribe entrepreneurs. It assists them in meeting Central Government Public Procurement Policy requirements, adopting appropriate business methods, and taking advantage of Stand-Up India initiatives.


  1. Up to 25% subsidy (or Rs. 25 lakh maximum) on plant, machinery, and equipment purchases.
  2. Marketing and mentoring support through exhibitions and vendor development programs.
  3. Reimbursement for various fees including bank loan processing, testing services, Export Promotion Council membership, and government-promoted eCommerce portal membership.
  4. SC/ST enterprise and entrepreneur information sharing with Central Public Sector Enterprises.
  5. Free skill training and trade-specific tool kit distribution under Skill Development programs.


Aspiring and existing SC/ST entrepreneurs.


Launched in October 2016, the National Scheduled Caste and Scheduled Tribe Hub (NSSH) supports SC/ST entrepreneurs in capacity building, market linkages, finance facilitation, and tender bid participation. Various sub-schemes and interventions are offered, including subsidies for plant and machinery purchases, marketing assistance, Single Point Registration Scheme with NSIC, and reimbursement for various fees.

For guidelines, visit:

ASPIRE Scheme: Comprehensive Overview
The ASPIRE Scheme aims to establish a Livelihood Business Incubators (LBIs) network, primarily in rural and underserved areas, to foster innovation and accelerate entrepreneurship. This promotes employment generation, skill development, and micro-enterprise creation in the agro-rural sector.


  1. Up to INR 1 crore for government agencies and INR 75 lakh for private agencies for plant and machinery procurement.
  2. Up to INR 1 crore for operational expenditure support towards manpower costs, incubation and skill development programs, etc.


Government of India/State government agencies/institutions, existing training centers, industry associations, and academic institutions. Not-for-profit private institutions with a successful track record in incubation and/or skill development programs may also be eligible to establish an LBI.


Livelihood Business Incubators (LBIs) provide skill development and incubation programs to promote entrepreneurship and employment in the agro-rural sector, focusing on rural and underserved areas. Private organizations must contribute 25% of the capital expenditure.

For detailed guidelines, visit:

How to apply:

Apply at

Khadi Gramodyog Vikas Yojana – Umbrella Scheme: Comprehensive Overview

The Khadi Gramodyog Vikas Yojana seeks to enhance productivity and wages for Khadi artisans, secure livelihoods, improve infrastructure for Khadi production, increase sales and employment, develop village industries and rural artisans, revive traditional rural artisan skills, renovate and modernize sales outlets, and promote marketing and exports.


Organizations eligible for registration with KVIC or State Khadi and Village Industries Boards include Khadi Institutions and Khadi artisans. Beneficiaries can be identified by KVIC, NGOs, DICs,FPOs, KIs, VIs, KVIBs, and others. One person per family is eligible, with preference given to SCs/STs/women/BPL individuals/unemployed youth.

How to apply:

Apply at

Khadi Udyog Yojna: Overview

The Khadi Udyog Yojna, a component of the Khadi Gramodyog Vikas Yojana, focuses on the growth and promotion of the Khadi sector. The scheme aims to boost the productivity and income of Khadi artisans, secure their livelihoods, and enhance infrastructure for Khadi production. Additionally, it seeks to increase Khadi sales and employment opportunities.

Key components of the Khadi Udyog Yojna include:

  1. Modified Market Development Assistance (MMDA): This offers a subsidy on the prime cost of Cotton/Muslin, Wool, Polyvastra, and Silk Khadi products.
  2. Interest Subsidy Eligibility Certificate Scheme (ISEC): This ensures that Khadi institutions only pay 4% interest on loans, with the remaining difference between the actual interest charged and 4% being subsidized by the KVIC.
  3. Work-shed Scheme for Khadi Artisans: This provides financial assistance to establish individual and group worksheds, including toilets.
  4. Strengthening Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure: This offers financial assistance for the revival of Khadi institutions and renovation of departmental sales outlets.

Gram Udyog Yojna: Overview

The Gram Udyog Yojna, also part of the Khadi Gramodyog Vikas Yojana, aims to develop village industries and increase the number of rural artisans. Its primary focus is on reviving traditional rural artisan skills and promoting marketing and exports. The scheme includes various components targeting different industries such as Agarbatti, Leather Footwear, Pottery, Beekeeping, Waste Wood/Turn Wood Craft/Wooden Toy/Products of Panchgavya, Hand Made Paper and Fiber, Agro-Food Based Food Processing, and Service Industry.

Under the Gram Udyog Yojna, eligible beneficiaries receive training in their respective industries, along with the distribution of machinery, tool kits, and equipment to help them set up their enterprises. The scheme aims to provide sustainable livelihoods to rural artisans and promote overall rural development.

Both the Khadi Udyog Yojna and Gram Udyog Yojna are designed to create opportunities and empower rural artisans and entrepreneurs while preserving and promoting traditional skills and crafts.

Promotion of MSMEs in NER & Sikkim:

  • The objective is to provide financial support to improve productivity, sustainability, and competitiveness of MSMEs in NER and Sikkim, develop shared facilities and infrastructure, and foster the tourism sector in NER and Sikkim

Key Benefits:

  • Common facilities for MSMEs
  • Infrastructure development for entrepreneurs
  • Support for tourism sector development in NER & Sikkim


  • State government or state government organizations involved in the advancement of MSMEs.

How to Apply:

Tool Rooms and Technical Institutions, as a component of Infrastructure Development & Capacity Building, support MSMEs with tooling facilities, personnel, and consultancy.

Support MSMEs with tooling facilities, personnel, and consultancy

Key Benefits:

  • Access to tooling facilities and skilled personnel
  • Process and product development in relevant sectors
  • Consultancy and job works in relevant sectors


  • Industrial units (focusing on MSME sector)
  • Individuals with varying educational backgrounds, from school dropouts to M. Tech level

How to Apply:

MSME Champions Scheme:


  1. MSME Sustainable (ZED)
  2. MSME Innovative (for Incubation, IPR, Design)

MSME Sustainable (ZED) Certification:

  • Promote the adoption of Zero Defect Zero Effect (ZED) practices among MSMEs and establish an ecosystem that supports ZED manufacturing within MSMEs.
  • Promote adoption of ZED practices and recognize successful MSMEs

Cost of Certification:

  • Certification Level 1: Bronze: Rs. 10,000/-
  • Certification Level 2: Silver: Rs. 40,000/-
  • Certification Level 3: Gold: Rs. 90,000/-
  • Subsidy on cost of ZED certification and additional subsidies available for specific categories


  • MSMEs registered with the UDYAM registration portal (of the MoMSME) are eligible for support and benefits.

How to Apply:

Subsidy Name: MSME – Innovative (Incubation, IPR, and Design)

  • Encourage innovation across the entire value chain by supporting idea development, incubation, design interventions, and IP protection.
  • Offer facilities and assistance for concept-to-market development, design competitiveness, and commercialization of intellectual creations within the MSME sector.
  • Foster innovation and creative problem-solving via knowledge sharing and collaboration among industry, academia, government institutions, and research labs.
  • Connect industry/academic leaders with innovators to facilitate new product development and support.
  • Concentrate on developing affordable, sustainable, and commercially viable innovations that can benefit a large number of people.


  1. Incubation:
  • Financial support up to Rs. 15 lakh per idea for developing and nurturing ideas.
  • Up to Rs. 1 crore financial assistance for plant and machinery procurement and installation, including hardware and software for R&D activities and common facilities.
  1. Design:
    • Design Project: Government of India (GoI) contributes up to 75% (Micro) and 60% (Small & Medium) of total project cost, with a maximum of Rs. 40 lakh. MSMEs bear the remaining cost.
    • Student Project: GoI contributes 75% of total project cost, up to a maximum of Rs. 2.5 lakhs.
  2. IPR:
    • Up to Rs. 1 crore grant provided to IP Facilitation Centers (IPFC) in milestone-based installments.
    • Refund for registering patents, trademarks, geographical indications (GI), and designs, with the highest financial aid as detailed below:
ItemMaximum Financial Assistance
Foreign PatentRs. 5.00 lakhs
Domestic PatentRs. 1.00 lakhs
GI RegistrationRs. 2.00 lakhs
Design RegistrationRs. 0.15 lakhs
TrademarkRs. 0.10 lakhs


  • Incubation: MSMEs, individuals, and students possessing inventive concepts can submit applications via accredited Host Institutes (HIs).
  • Design: Beneficiary units must be registered micro, small, or medium enterprises with valid UAM or Udyam Registration.
  • IPR: Manufacturing MSMEs with UAM/UDYAM Registration.

Detailed Information:

  • MSME Innovative Champions unifies three sub-schemes to create a single-mode approach for promoting innovation, design intervention, and IP protection among MSMEs, fostering awareness about India’s innovation landscape and motivating them to become MSME Champions.

How to Apply:

For Struggling MSMEs – Credit Guarantee Scheme for Subordinate Debt (CGSSD):

  • Provide subordinate debt to sustain and revive MSMEs that have become NPAs or are close to becoming NPAs.
  • Allow promoters to infuse funds as equity to improve liquidity and maintain the debt-equity ratio.


  • Promoters can obtain credit equal to 50% of their investment (equity plus debt) or Rs. 75 lakh, whichever is lower.


  • Operational MSMEs stressed and classified as NPAs as of April 30, 2020, and standard as of November 1, 2016.

Detailed Information:

  • Credit sum: 50% of promoter’s investment (equity plus debt) or Rs. 75 lakh, whichever is lower.
  • Maximum repayment duration: 10 years, with a 7-year principal payment moratorium.
  • Sub-debt guarantee: 90% guarantee coverage by the scheme/trust, with 10% from the promoter(s).

How to Apply:

Self Reliant India (SRI) Fund:

Empowering MSMEs for Aatmanirbhar Bharat

  • Aims to support India’s self-reliant economic growth by providing capital to viable MSMEs with growth plans.
  • Leverages the private sector to offer growth capital through equity, quasi-equity, and debt.

Fund Objective:

  • Accelerate MSME growth, ignite the economy, and create employment opportunities.
  • Nurture MSMEs with the potential to become national or international champions.
  • Help India become self-reliant by producing essential technologies, goods, and services.

SRI Fund Structure:

  • Created by the Ministry of MSME through NSIC Venture Capital Fund Limited (NVCFL) as an Alternative Investment Fund (AIF) with a Mother Fund-Daughter Fund structure.
  • Offers growth capital through equity, quasi-equity, and structured instruments, encouraging MSMEs to list on stock exchanges.

SRI Fund Features:

Target GroupViable MSMEs with a positive growth trajectory
Total CorpusGovernment of India (M/o MSME) contribution INR 10,000 crore
Tenure of FundFund life is 15 years
ScopeDisbursement to MSMEs across the country
Fund TypeDaughter Funds can be category I or II AIFs registered with SEBI
ExclusionsNon-profit institutions, NBFCs, financial inclusion sector, etc.

Raising and Accelerating MSME Performance (RAMP):

  • World Bank-supported initiative to improve MSME access to market, finance, and technology by expanding MoMSME scheme outreach.
  • Enhances central and state institutions and promotes center-state collaboration.


  • Boost center-state collaboration in MSME promotion and development.
  • Increase the effectiveness of existing MoMSME schemes for technology upgrading.
  • Strengthen the receivable financing market for MSMEs.
  • Enhance the effectiveness of CGTMSE and promote guarantees for greening initiatives and women-owned MSEs.
  • Reduce delayed payment incidences to MSEs.


  • The RAMP initiative fosters technology enhancement, innovation, digitalization, market access, credit, and eco-friendly measures with state government collaboration.

Target Beneficiaries:

  • Over 5.5 lakh MSMEs during the program period (FY 2022-23 to 2026-27), implemented through state agencies.

Scheme Applicable For:

  • Individual MSMEs through State Government/Agencies.

In conclusion, the various MSME subsidies offered by the Indian government play a crucial role in promoting the growth and development of small businesses. These schemes cater to diverse sectors and objectives, ensuring the overall growth of the economy. By understanding the benefits, eligibility criteria, and application processes for each subsidy, MSMEs can leverage these resources to thrive in the competitive market, contributing to the nation’s vision of a self-reliant and prosperous India.

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