World MSME Day 2024: 5 Flagship Schemes Introduced By Indian Government For MSME Sector In The Country

Check out 5 flagship schemes introduced by the Indian government for MSME sector in the country.

New Delhi: The UN General Assembly has declared June 27th as the International Day for micro, small, and medium-sized enterprises (MSME). The Day is observed to celebrate the role of MSMEs in driving economic growth and generating jobs.

Acknowledging the role of the MSMEs in the nation's progress, the Indian government has introduced several significant programs to support their development.

Here are 5 flagship schemes introduced by the Indian government for MSME sector in the country

1. Prime Minister’s Employment Generation Programme (PMEGP) 
PMEGP assists entrepreneurs in setting up new units in the non-farm sector. It aims to provide employment opportunities to traditional artisans/ rural and urban unemployed youth. 

2. Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)
The CGTMSE aims to provide credit guarantee support to Member Lending Institutions for credit facilities sanctioned by them to MSEs, especially in the absence of collateral. The increased use of guarantees as a credit enhancement tool instills optimism for the future of entrepreneurship, fostering collateral-free lending.

3. Entrepreneurship Skill Development Programme (ESDP)
The ESDP aims to promote new enterprises, build the capacity of existing MSMEs, and inculcate entrepreneurial culture in the country. About 40% of the targeted beneficiaries of ESDPs are mandated to be from weaker sections of the Society i.e., SC, ST, women, and physically handicapped. 

4. MSME Champions Schemes 
This scheme comprises three components - MSME-Sustainable (ZED), MSME-Competitive (Lean), and MSME-Innovative (for Incubation, IPR, Design, and Digital MSME). The scheme aims to promote competitiveness amongst Micro, Small and Medium Enterprises.

5. Micro and Small Enterprises – Cluster Development Programme (MSE-CDP)
The scheme aims to enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs) for their holistic development. This is done by adopting a cluster approach through financial assistance such as the GoI grant for establishing Common Facility Centers (CFCs) in the existing clusters and for establishing new or up-gradation of existing industrial areas, etc.