New Delhi: NITI Aayog has proposed converging government schemes for Micro, Small and Medium Enterprises (MSMEs) that are currently spread across multiple ministries.
The move aims to enhance coordination, eliminate duplication, and simplify access to support for MSMEs.
The proposal is detailed in a report titled ‘Achieving Efficiencies in MSME Sector through Convergence of Schemes’, prepared by the Administrative Staff College of India, Hyderabad. NITI Aayog member Arvind Virmani and chief executive officer B.V.R. Subrahmanyam released the report.
According to the report, the Ministry of MSME runs 18 schemes covering credit, skills, infrastructure, marketing, innovation, technology upgradation, and cluster development. While these schemes have supported enterprise growth, overlapping objectives and fragmented implementation have limited their impact.
Call for coordinated governance
The report calls for a coordinated governance framework that enables ministries and implementing agencies to work together. It suggests joint planning, shared data systems, and coordinated outreach to MSMEs.
Key recommendations include regular inter-ministerial workshops, joint training programmes, and common efforts to mobilise beneficiaries. The report argues that such coordination can reduce silos and improve service delivery across the ecosystem.
Central digital portal proposed
One of the central proposals is the creation of a single digital portal for MSMEs. The platform would bring together information on government schemes, compliance norms, finance options, and market opportunities.
The report suggests that the portal could be AI-enabled, offering dashboards, chat-based support, and mobile access. This, it said, would help MSMEs receive real-time assistance and navigate government support more easily.
Two-pronged convergence framework
The document outlines a two-part convergence framework. Information convergence would focus on integrating data at the central and state levels to support better coordination and decision-making. Process convergence would aim to align similar schemes to reduce overlap and streamline implementation.
In cluster development, the report recommends aligning the Scheme of Funds for Regeneration of Traditional Industries with the Micro and Small Enterprises–Cluster Development Programme. This, it said, would improve planning and optimise resource use.
Selective merging, not blanket integration
The report also proposes merging the Procurement and Marketing Scheme with the International Cooperation Scheme to ease access to marketing support. It suggests aligning innovation initiatives by integrating ASPIRE with MSME Innovative, with ASPIRE as a special category for agro-rural enterprises.
At the same time, the report warns against blanket merging of schemes. Programmes designed for specific groups, such as the National SC/ST Hub and schemes for the Northeastern region, should retain their distinct focus. Large flagship schemes like PMEGP and PM Vishwakarma should also remain independent due to their scale and specific objectives.
