Top Government MSME Schemes For 2025

Here are some important schemes, their benefits, subsidies, and incentives available under each of the schemes for MSMEs

Boosting MSMEs: Essential Schemes for Success

Micro, Small, and Medium-Sized Businesses (MSMEs) are vital to the continuing growth and success of the Indian economy. These businesses grow, create employment, and contribute to the vision of a Viksit Bharat by 2047 through several kinds of initiatives run by the Ministry of MSME and its subsidiary organizations. By providing financial assistance, training for employees, technology upgradation, quality improvement, marketing support, and infrastructure development, these schemes helps MSMEs to grow and become more competitive.

1) Prime Minister’s Employment Generation Programme (PMEGP)

• Benefit: Provides financial assistance to set up new micro-enterprises in the non-farm sector.
• Subsidy: Subsidy up to 35% of the project cost (up to 25% for urban areas) for general category, and up to 50% (up to 40% for urban areas) for special categories like SC/ST, women, and others.
• Other: Credit linkages with banks, reducing financial hurdles for entrepreneurs.
  Website:[PMEGP] http://www.kviconline.gov.in/pmegpeportal/

2) 2nd Loan for Upgradation of Existing PMEGP/MUDRA Units

• Benefit: Provides additional funding to existing PMEGP or MUDRA units for upgrading and expanding their business.
• Subsidy: Interest subsidy on the loan amount, promoting modernization.
• Other: Encourages the adoption of new technologies and infrastructure.

   Website: [PMEGP] http://www.kviconline.gov.in/pmegpeportal/

3). Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE) 

• Benefit: Provides collateral-free loans for MSMEs, reducing the burden of mortgage.
• Subsidy: 75% credit guarantee for MSMEs with loans up to Rs. 2 crore.
• Other: Guarantees enhance the creditworthiness of small businesses and facilitate easy access to bank finance.

   Website: [CGTMSE] https://www.cgtmse.in/

4). Micro & Small Enterprises Cluster Development Programme (MSE-CDP) 

• Benefit: Provides financial assistance to MSME clusters for infrastructure development, technology upgradation, and market support.
• Subsidy: Up to 90% subsidy on project cost for infrastructure and technology development.
• Other: Helps to improve production capacity and market reach for small businesses in a cluster.

   Website: [MSE-CDP] https://www.msecdp.gov.in/

5). Entrepreneurship Skill Development Programme (ESDP) 

• Benefit: Provides training and development programs to help individuals start and manage businesses effectively.
• Subsidy: Financial support for training institutions conducting programs for entrepreneurs.
• Other: Skill development for sustainable self-employment and increasing entrepreneurship awareness.

   Website: [ESDP] http://www.msme.gov.in/

6). Assistance to Training Institutions (ATI) Scheme 

• Benefit: Supports institutions offering skill development programs for MSME employees and entrepreneurs.
• Subsidy: Financial assistance up to 75% of the cost for setting up training centers.
• Other: Helps MSMEs to upgrade the skills of their workforce, improving productivity.

   Website: [ATI] http://www.msme.gov.in/

7). Coir Vikas Yojana

• Benefit: Focuses on the development of the coir industry through financial assistance for technology upgradation, product diversification, and infrastructure improvement.
• Subsidy: Subsidies for setting up modern coir production units and enhancing the infrastructure in coir producing areas.
• Other: Enhances employment opportunities in the rural areas, particularly for women.

   Website: [Coir Vikas Yojana] https://coirboard.gov.in/

8). Procurement and Marketing Support (PMS) Scheme

• Benefit: Provides assistance for marketing MSME products both domestically and internationally, increasing their market reach.
• Subsidy: Financial assistance for participating in trade fairs, exhibitions, and for promotional activities.
• Other: Helps MSMEs establish a brand identity and boosts sales through market exposure.

   Website: [PMS Scheme] https://www.msme.gov.in/

9). International Cooperation (IC) Scheme 

• Benefit: Supports MSMEs in international trade by assisting with participation in global events and establishing foreign partnerships.
• Subsidy: Financial assistance for travel, trade fair participation, and business meets.
• Other: Promotes export-oriented growth for MSMEs and enhances global competitiveness.

   Website: [IC Scheme] http://www.msme.gov.in/

10). National SC-ST Hub Scheme

• Benefit: Facilitates the growth of MSMEs owned by Scheduled Castes and Scheduled Tribes by offering access to credit and markets.
• Subsidy: Access to various incentives like credit guarantee schemes and direct procurement from government entities.
• Other: Focuses on entrepreneurship development and capacity building for SC/ST entrepreneurs.

   Website: [SC-ST Hub] https://www.msme.gov.in/

11). A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)

• Benefit: Provides financial assistance to rural entrepreneurs for setting up innovative businesses.
• Subsidy: Grant assistance for infrastructure and technical support to boost rural industries.
• Other: Encourages rural youth to take up entrepreneurship, promoting innovation in rural areas.

   Website: [ASPIRE] https://www.msme.gov.in/

12). PM Vishwakarma – Enabling Artisans and Craftspeople to Build Enterprises

• Benefit: Aims to provide financial and skill development support to artisans and craftspeople.
• Subsidy: Financial support for modernizing their craft and enhancing product quality.
• Other: Empowers artisans to expand their reach, innovate, and grow their businesses.

   Website: [PM Vishwakarma] https://www.msme.gov.in/

For assistance, MSMEs can contact, we’re here to support your growth on pro bono basis to MSME Help

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