The NITI Aayog on Thursday released a comprehensive report titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes”, outlining a strategic framework to streamline government support and improve outcomes for India’s Micro, Small and Medium Enterprises (MSMEs).
The report, launched by NITI Aayog Member Arvind Virmani and NITI Aayog Chief Executive Officer B. V. R. Subrahmanyam, presents a detailed blueprint to enhance the effectiveness of MSME schemes by strengthening inter-ministerial coordination, simplifying implementation, and improving the delivery of financial, skill, marketing and innovation-related support.
The report notes that the Ministry of MSME currently administers 18 schemes across areas such as credit, skill development, marketing, innovation, technology upgradation and infrastructure. While these initiatives have contributed significantly to MSME growth, overlapping objectives and fragmented implementation across ministries often lead to duplication, inefficiencies and limited outreach.
According to the report, effective convergence and rationalisation of schemes can simplify access for beneficiaries, reduce confusion, and ensure better translation of public resources into tangible outcomes, thereby amplifying the overall impact on the MSME sector.
To address these challenges, the report recommends a two-pronged convergence strategy:
* Information convergence, which focuses on integrating government-generated data at central and state levels to improve coordination, enable informed decision-making and strengthen governance.
* Process convergence, aimed at aligning and unifying schemes to reduce redundancies, streamline operations and improve service delivery through merging similar schemes, combining common components and fostering collaboration across ministries and states.
Among the major proposals, the report calls for the creation of an AI-powered centralized digital portal for MSMEs, integrating information on schemes, compliance requirements, finance and market intelligence. Drawing on global best practices, the proposed platform would offer real-time support through AI chatbots, dashboards and mobile access.
The report also recommends:
* Converging cluster development initiatives by integrating the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises–Cluster Development Programme (MSE-CDP), while creating a dedicated sub-scheme for traditional industries.
* Rationalising skill development programmes into a three-tier structure covering entrepreneurship and business skills, MSME technical skills, and training for rural and women artisans.
* Establishing a dedicated Marketing Assistance Wing with domestic and international components to support MSME participation in trade fairs, exhibitions and buyer-seller meets.
* Integrating the ASPIRE scheme into MSME Innovative as a special category for agro-rural enterprises, while ensuring continued funding support.
The report emphasises that targeted initiatives such as the National SC/ST Hub and schemes for MSMEs in the North Eastern Region should be safeguarded. Large flagship programmes like PMEGP and PM Vishwakarma are recommended to remain independent, given their scale and strategic importance.
Highlighting the need for cautious and well-managed convergence, the report stresses protecting beneficiary interests, carefully managing transitions, and rigorously tracking outcomes to ensure sustained impact.
The recommendations, NITI Aayog said, are aimed at unlocking greater efficiency, improving outreach and empowering MSMEs, which are a key driver of employment and economic growth in India.
