NITI Aayog Blueprint: Converging Schemes to Boost MSME Efficiency & Outreach

Launched by Arvind Virmani, Member, NITI Aayog, and B. V. R. Subrahmanyam, Chief Executive Officer, NITI Aayog, the report identifies best practices across central and state levels to improve the delivery of financial, skill, and marketing support.

The report emphasizes that while the Ministry of MSME currently administers 18 schemes spanning credit assistance, skill development, and infrastructure, the sector faces challenges from overlapping objectives.

It notes that "overlapping objectives and fragmented implementation across ministries often lead to duplication, inefficiencies, and limited outreach." By addressing these gaps, the government aims to ensure better translation of resources into tangible outcomes while reducing the confusion often faced by potential beneficiaries.

To achieve these goals, the report recommends a two-pronged approach consisting of information and process convergence. Information convergence focuses on integrating government-generated data to enable informed decision-making and strengthen governance outcomes.

Meanwhile, process convergence aims to unify schemes to reduce redundancies. This involves merging similar programs and fostering collaboration across ministries to create a cohesive support ecosystem for the sector.

A central recommendation includes the creation of an AI-powered centralized digital platform. This portal would integrate MSME schemes, compliance, finance, and market intelligence. According to the report, such a platform would feature "information, process, compliance, and market research modules, supported by AI chatbots, dashboards, and mobile access for real-time support."

Further, the report suggests a convergence of cluster development efforts by integrating the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises - Cluster Development Programme (MSE-CDP).

This integration would include a dedicated sub-scheme for traditional industries and consolidated funding to preserve endangered crafts while improving operational scale. Skill development programs are also proposed to be rationalized into a three-tier structure covering entrepreneurship, technical skills, and specialized training for rural and women artisans.

The roadmap also details the establishment of a Marketing Assistance Wing with both domestic and international components. This wing would facilitate participation in exhibitions and trade fairs to enhance market reach. Additionally, the report recommends integrating the Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE) into the "MSME Innovative" program as a special category for agro-rural enterprises.

Despite these moves toward unification, the report advocates for a strategy of "cautious convergence." It highlights the importance of safeguarding targeted initiatives like the National SC/ST Hub and programs for the North Eastern Region.

Large flagship programs, including the Prime Minister's Employment Generation Programme (PMEGP) and PM Vishwakarma, are recommended to remain independent due to their "substantial scale and strategic economic significance."

The report stresses the need for enhanced collaboration through joint workshops and rigorous outcome tracking to ensure a sustained impact on the MSME landscape.

- ANI