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  • Writer's pictureShe Business Time

Govternment Initiative for women Entrepreneur

Updated: Dec 3, 2022

MSMEs contribute nearly 8% of the country’s GDP, around 45% of the manufacturing output, and approximately 40% of the country’s exports. It won’t be wrong to refer them as the Backbone of the country.’

The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades.


To upgrade & impart practical Training to entrepreneurs on different skills.

A.EAP 1 or 2 days

C.ESDP Six weeks (6 hrs/day)

D.MDP One week (6 hrs/day)

It contributes significantly in the economic and social development of the country by fostering entrepreneurship and generating large employment opportunities at comparatively lower capital cost, next only to agriculture. MSMEs are complementary to large industries as ancillary units and this sector contributes significantly in the inclusive industrial development of the country. The MSMEs are widening their domain across sectors of the economy, producing diverse range of products and services to meet demands of domestic as well as global markets. In India, MSMEs contribute nearly 8% of the country’s GDP, around 45% of the manufacturing output, and approximately 40% of the country’s exports. It won’t be wrong to refer them as the ‘Backbone of the country.’

Schemes of DCMSME and some schemes of ministry of MSME are given below


To upgrade & impart practical Training to entrepreneurs on different skills.

A.EAP 1 or 2 days

C.ESDP Six weeks (6 hrs/day)

D.MDP One week (6 hrs/day)


• The Scheme had come into force from August 1, 2000.

• The Trust shall cover credit facilities extended by Member Lending Institution(s) to a single eligible borrower in the Micro and Small Enterprises sector for credit facility not exceeding Rs 200 lakh by way of term loan and/or working capital.

CGTMSE had included the MSE Retail Trade under its ambit for fresh credit facilities eligible for guarantee coverage by MLIs on or after February 28, 2018 for cases from Rs10 lakh to Rs100 lakh. (Refer Circular No.141 / 2017-18 dated February 28, 2018).

Any credit facility which has been sanctioned by the lending institution (all scheduled commercial banks, selected financial institutions and RRBs) with the maximum interest rate not more than 14% p.a. including cost of guarantee cover would be eligible for coverage under CGS (Refer Circular No.121/2016-17dated January 09, 2017 and 131/2016-17 dated July 21, 2017).


The Public Procurement Policy for Micro and Small Enterprises (MSE) 2012 and 9th November, 2018 order has mandated Every Central Ministry/Department/PSU shall set an annual goal for procurement from the MSE sector at the beginning of the year, with the objective of achieving an overall procurement goal of minimum 25 percent of the total annual purchases from the products or services produced or rendered by MSEs.

out of 25 % reservation 18% for general category,4 % SC/ST and 3% for WOMEN category is earmarked.

Infrastructure support

• A Scheme of Fund for Regeneration of Traditional Industries (SFURTI) Up to 500 Artisans per cluster -2 .5 Cr

More than 500 Artisans per cluster -5 Cr

• For soft intervention Max.25 lacs

• A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE)

• For Livelihood Business Incubator(LBI)-100 % grant for Equipment Max.1 Cr for Govt. agencies while 50% grant Max.50 Lacs for PPP


(A)Participation of individual MSEs in domestic trade fairs/ exhibitions across the coun(A)Participation of Individual MSEs in Trade Fairs / Exhibitions (Twice in a year) in domestic trade fair/exhibitions.

Rs.1.50 LAKH for Metro and A class city and Rs 0.80 lakh for other city 80% for male and 100 % for weaker section including women,NER/J&K/Aspiration Distr. (incl. All taxes) max, or actual whichever is less for a participating enterprise per event it includes To and fro actual fare of train / air travel (limited to AC-II tier Class and economy class in case of air travel) from nearest railway station / airport to the place of exhibition by shortest route for one person per enterprise subject to maximum Rs 25000/- or actual whichever is less, It also includes freight and publicity charges on actual basis

(B) Organizing Domestic Trade Fairs/ Exhibition and participation in trade fairs/exhibitions by the Ministry/Office of DC (MSME)/Government organizations: (C)Capacity building of MSMEs in modern packaging technique:

• Empanelled packaging expert organizations like IIP, NID,NIFT etc sign an MoU with O/o DC (MSME) and, accordingly, provide the consultancy services to the approved clusters supported by the Ministry under its various schemes

• The focus of the scheme would be clusters like food processing, toys, handicrafts, kitchen and home utilities, ceramics, glass, gem & jewellery, textiles and apparels,

• Medical equipment ,sports goods etc.

• Sanction of max. Rs 15 lakh / cluster or actual, whichever is less

(D)Development of Retail outlets:

• Rs. 3O lakh max per outlet in Metro & A class cities and Rs. 20 lakh max per outlets for other cities shall be provided towards infrastructure outlet area of 500 sq.ft with proper interior design, including computer, printer, bill counter, cata-logue of product and show case to the retailer subject to 5O% contribution from the retailer.

• The seller must have an MoU/ agreement with GI holder.

• The Industry Associations / Trade Bodies representing the eligible retailers may submit their proposals to concerned MSME-DIs

(E) Vendor Development Programs:

• To facilitate market linkages for effective implementation of Public Procurement Policy

• CPSE level Vendor Development Programme cum Exhibition of Products- Two days Sanction of max. Rs 5.0 lakh or actual whichever is less consist of training on various aspects related to GeM and exhibition of products.

• VDP should benefit MSEs in their GeM registration and detailed understanding of Public Procurement with CPSEs.

(F)National Workshops/Seminars.:

• Scale of assistance: Rs. 5.0 lakh max. or actual, whichever is less per workshop/seminar To educate MSMEs on various facets of business development i.e. product & process development innovations, technological development, EXIM policy, Public Procurement Policy, adoption of e- commerce,

• design & packaging, market research and access, anywhere in the country.

• c. Assistance is admissible to The Govt./ non - Govt. reputed organisations having at least 3 years of experience in organising subject specific workshops / seminars.

Adoption of e-Commerce Platform

• Providing financial assistance on annual membership fee /subscription fee / contingency expenses (photography, cataloguing, advertising etc.) for selling their products or services by Micro Enterprises (up to 10 new products) through e-commerce portal "MSME Global Mart" being operated by NSIC.

• The financial assistance may be provided 75% of paid amount by Micro Enterprises subject to maximum Rs. 25,000/- (excluding applicable taxes), whichever is less per financial year.

• The Micro enterprises with valid Udyam Registration may submit their claims to NSIC for reimbursement

• Adoption of Bar Code (PMS)

• Providing financial assistance of 80% of one-time registration fee and annual recurring fee (for first three years) paid by micro enterprises for obtaining up to 100 Nos. of bar codes (i.e. products) or actual whichever is less subject to Rs 50,650/- (Fifty thousand six hundred and fifty) max.


• MSME Innovative is a new concept for MSMEs with a combination of innovation in incubation, design intervention and by protecting IPR in a single mode approach to create awareness amongst MSMEs about India’s innovation and motivate them to become MSME Champions.

For Incubation-Financial Assistance up to maximum of Rs. 15 lakh per idea shall be provided to HI. Funds will be released after the approval of the idea by PMAC.

• Financial Assistance for Plant and Machinery to HI up to Rs. 1.00 cr. (max) shall be provided for procurement and installation of relevant plant and machines including hardware and software etc. in BI for R&D activities and common facilities for incubatees of BI.

DESIGN COMPONENT-The Design scheme is divided in two major parts, viz., Design Projects and Design Awareness Programme.

i. Design Project: Financial assistance under this activity will be utilised for engagement of design consultants for design interventions and expenses pertaining to development of prototype/product. For the design projects approved for any MSME, 75% (Micro) and 60% (Small & Medium) of the total project cost will be contributed by GoI up to a maximum of Rs. 40 lakh and the remaining project cost will be borne by MSMEs

ii. Student Design Project – This subcomponent can be availed by all the students of any institution accredited by AICTE/UGC. financial assistance up to Rs. 2.5 lakh. For the student design projects approved for any MSME,75% of the total project cost will be contributed by GoI up to a maximum of Rs. 2.5 lakh and the remaining project cost will be borne by MSME and deposited to the IA.


• Trade mark-Rs10000/- support

• Design registration- Rs15000/- support

• Domestic Patent- Rs One Lakh support

• International Patent- Rs Five Lakh support

• Geographical registration(GI) Rs Two Lakh support

• Setting up of IPFC –Rs One Cr. Support


Common Facility Centers: Creation of “tangible assets” such as Common Production / Processing Centre, Design Centers, Testing Facilities including Plug & Play Facilities with Backward / Forward Linkages support of Max 30 Cr. Project cost.

Characteristics of the Cluster-A cluster is a group of enterprises located in an contiguous area (to a large extent) or a value chain that may go beyond a geographical area and producing same / similar products / complementary products/ services, which can be linked together by common physical infrastructure facilities. b.) The essential characteristics of enterprises in a cluster are (a) Similarity or in the methods of production, quality control & testing, energy consumption, pollution control, etc., (b) Similar level of technology & marketing strategies / practices, (c) Similar channels for communication among the members of the cluster, (d) Common market & skill needs and/ or (e) Common challenges & opportunities that the cluster faces

MSME Sustainable (ZED) Certification Scheme.

• By this scheme, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc.

• Mfg. MSMEs will get subsidy as per the following structure, on the cost of ZED certification:

• Micro Enterprises: 80%

• Small Enterprises: 60%

• Medium Enterprises: 50%

• There will be an additional subsidy of 10% for the MSMEs owned by Women/SC/ST Entrepreneurs OR MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts. In addition to above, there will be an additional subsidy of 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) of the Ministry.

A provision of up to Rs. 5 lakh (per MSME) will be made available for handholding and consultancy support for MSMEs under ZED Certification for assisting them to move towards Zero Defect Zero Effect solutions.

International Coopration scheme(IC) SCHEME

To provide marketing platform to MSMEs through participation in International

level exhibitions being organized by ITPO,FIEO,EEPC,APEDA etc

A) 100 % of space rent paid to MSME units limited to Rs 3.0Lakhs or actual whichever is less.

B) 100 % of Economy class air fair limited to Rs 1.50 lakh- or actual whichever is less for MSME unit and office bearer of association.

C) Freight charges-Actuals subject to maximum of Rs.50000/-per MSME(Rs75000/- for Latin American countries)

D)Office bearer will get USD 150 PER DAY FOR A MAXIMUM 3 DAYS.

Capacity Building of First Time MSE Exporters (CBFTE)

• Registration-cum-Membership Certificate (RCMC) paid by the first-time exporters for registration with EPCs. 75 percent of the cost paid subject to a maximum of Rs. 20,000/.

• An export insurance premium paid to Export Credit Guarantee Corporation(ECGC) by MSEs.Maximum financial assistance in a financial year of Rs. 10,000/

• Fee paid on Testing & Quality certification-75 % of the testing and quality Certification acquired by MSEs to certification with a ceiling of Rs. 1.00 Lakh for a maximum of 3 certificates per financial year


• TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers.

• These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).

• Once the financiers start to bid on the invoice the bids start getting visible to the supplier and the buyer.

• The buyer then accepts the bid. Upon acceptance, payment is processed the next day and supplier's account is credited with the discounted amount.





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