MSME Schemes – Ministry of Micro, Small and Medium Enterprises

Budget 2019 announcement!
GST registered MSMEs can get 2% interest subvention from Government for incremental loans of Rs 1 crores under the MSME Credit scheme

MSME stands for Micro, Small and Medium Enterprises. These industries or enterprises form the backbone of our economy and need assistance and protection from other big companies as they lack in resources and technology. To do this the government provides some schemes, rebates or counselling to these enterprises.

The threshold for the enterprises to be called as Micro, Small or Medium is as follows
-Manufacturing or the Production Sector
- Service Sector
Some of the MSME schemes launched by the Government are
-Udyog Aadhaar memorandum
-Zero Defect Zero Effect
-Quality Management Standards & Quality technology Tools
-Grievance Monitoring System
-Credit Linked Capital Subsidy Scheme
-Women Entrepreneurship

The threshold for the enterprises to be called as Micro, Small or Medium is as follows

Manufacturing or the Production Sector

MICRO – Investment is less than or equal to Rs. 25 lakhs

SMALL – Investment is to be more than 25 lakhs but limited to Rs. 5 crore

MEDIUM – Investment is more than 5 crore but less than 10 crores.

Service Sector

MICRO – Investment in equipment does not exceed Rs. 10 Lakhs

SMALL – Investment in equipment is more than 10 Lakhs but limited to Rs. 2 Crore

MEDIUM – Investment in equipment is more than 2 Crore but less than 5 Crore.

Some of the MSME schemes launched by the Government are:-

Udyog Aadhaar memorandum

Aadhaar card is a 12 digit number given to all individuals by the government. In this, the Aadhaar card is a mandatory requirement. The benefit of registering in this scheme is ease in availing credit, loans, and subsidies from the government. Registration can be done both ways in the online mode or the offline mode.

Zero Defect Zero Effect

In this model, goods that are manufactured for export have to adhere to a certain standard so that they are not rejected or sent back to India. To achieve this the government has launched this scheme. In this, if the goods are exported these are eligible for some rebates and concessions.

Quality Management Standards & Quality technology Tools

Registering in this scheme will help the micro, small and medium enterprises to understand and implement the quality standards that are required to be maintained along with the new technology. In this scheme, activities are conducted to sensitize the businesses about the new technology available through various seminars, campaigns, activities etc.

Grievance Monitoring System

Registering under this scheme is beneficial in terms of getting the complaints of the business owners addressed. In this, the business owners can check the status of their complaints, open them if they are not satisfied with the outcome.


This scheme helps innovators with the implementation of their new design, ideas or products. Under this from 75% to 80% of the project cost can be financed by the government. This scheme promotes new ideas, designs, products etc.

Credit Linked Capital Subsidy Scheme

Under this scheme, new technology is provided to the business owners to replace their old and obsolete technology. The capital subsidy is given to the business to upgrade and have better means to do their business. These small, micro and medium enterprises can directly approach the banks for these subsidies.

Women Entrepreneurship

This scheme is especially started for women who want to start their own business. The government provides capital, counseling, training and delivery techniques to these women so that they manage their business and expand it.

The government has launched a number of more schemes and support system for these enterprises, to know more about the MSME schemes the following link of the government can be checked.