ACHIEVING EFFICIENCIES IN MSME SECTOR THROUGH CONVERGENCE OF SCHEMES

NEWS: Released by NITI Aayog, outlining a strategic roadmap to strengthen the effectiveness of government support for India’s Micro, Small and Medium Enterprises (MSMEs). The report was launched by Dr. Arvind Virmani, Member, NITI Aayog & Sh B. V. R. Subrahmanyam, Chief Executive Officer, NITI Aayog.

ABOUT

• The program evaluates existing Government of India schemes and programmes for the MSME sector, assesses the current level of convergence
• Based on this assessment, the report offers actionable recommendations to unlock convergence opportunities and undertake corrective measures to improve efficiency

Need for Convergence

• The Ministry of MSME currently implements 18 schemes covering key areas such as credit assistance, skill development etc
• Effective convergence can:
  • Simplify access for MSMEs
  • Improve utilisation of resources
  • Enhance translation of inputs into measurable outputs and outcomes

two-pronged approach to convergence

• Information convergence focuses on integrating government-generated data at the central and state levels to improve coordination, enable informed decision-making
• Process convergence aims at aligning and unifying schemes to reduce redundancies, streamline operations, and improve service delivery

Key recommendations

• Centralized Portal for MSMEs: The report proposes an AI-powered centralized digital platform integrating MSME schemes, compliance, finance, and market intelligence.
• Convergence of Cluster Development Schemes: Integration of the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP)
• Convergence of skill development programmes
• Marketing Assistance Wing: To streamline MSME marketing support, the report proposes a dedicated Marketing Wing with domestic and international components
• MSME Innovative & A Scheme For Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)