Context:

Recently, NITI Aayog released a comprehensive report titled “Achieving Efficiencies in the MSME Sector through Convergence of Schemes.”

About the Report:

The report outlines a strategic blueprint to enhance MSME outcomes by streamlining scheme implementation, improving inter-ministerial coordination, and strengthening support across finance, skills, marketing, and innovation. It reviews existing government schemes, assesses the level of convergence, and draws upon best practices from central, state, and international experiences.

Key Findings of the Report:

Need for Convergence:

The Ministry of MSME currently manages 18 schemes spanning credit, skill development, marketing, innovation, technology upgradation, and infrastructure. While these schemes have been impactful, overlaps and fragmented implementation across ministries have led to inefficiencies, duplication of efforts, and limited outreach. The report emphasises that rationalisation and convergence of schemes can simplify access, improve resource utilisation, and amplify the sector’s overall impact.

Framework for Convergence:

The report proposes a dual approach:

• • • •  Information Convergence: Integration of government-generated data at central and state levels to enhance coordination, enable informed decision-making, and strengthen governance outcomes.
      • Process Convergence: Alignment and unification of schemes to reduce redundancies, streamline operations, and improve service delivery. This includes merging similar schemes, integrating common components, and fostering collaboration across ministries and states.

Key Recommendations:

• • • • Centralised AI-powered MSME Portal: Creation of a single digital platform integrating scheme information, compliance, finance, and market intelligence, supported by AI chatbots, dashboards, and mobile access for real-time assistance.
      • Cluster Development Schemes: Integration of SFURTI and MSE-CDP under a unified governance structure, with earmarked funding for traditional industries and crafts.
      • Skill Development Rationalisation: Adoption of a three-tier structure covering entrepreneurship and business skills, technical skills, and rural/women artisan training, while merging overlapping schemes and retaining targeted interventions.
      • Marketing Assistance Wing: Establishment of a dedicated domestic and international marketing wing to support MSME participation in trade fairs and B2B platforms.
      • Innovation and ASPIRE Integration: Incorporation of ASPIRE under MSME Innovative for agro-rural enterprises, ensuring continued funding and access to incubation facilities.

MSMEs in India:

MSMEs, governed by the MSMED Act, 2006, are classified (effective 1 April 2025) as:

MSMEs are critical to economic growth, employment, and exports:

• • • • Contributing ~30% to GDP and ~45% to exports
      • Employing ~29.77 crore people, with over 51% in rural areas
      • Driving innovation, strengthening local supply chains, and integrating with global markets

Current Landscape:

• • • • Total MSMEs: ~6.82 crore registered
      • Micro enterprises: Over 99% (~6.3 crore units)
      • Small enterprises: ~0.52% (~3.3 lakh units)
      • Medium enterprises: ~0.01% (~0.05 lakh units)
      • Digital adoption: Approximately 72% of transactions are digital

Conclusion:

MSMEs remain the backbone of the Indian economy. Strategic convergence of schemes, improved coordination, and digital integration—as proposed by NITI Aayog—can significantly enhance the sector’s efficiency, competitiveness, and contribution to national development. Effective implementation of these recommendations will empower MSMEs to sustain domestic employment and innovation while scaling their presence in global markets.