NITI Aayog Unveils Roadmap to Boost MSME Impact Through Scheme Convergence

The report argues that effective convergence and rationalisation can simplify access for enterprises, improve outcomes, and ensure better use of public resources.

 

NITI Aayog today released a comprehensive report titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes”, laying out a strategic roadmap to enhance the effectiveness, reach, and impact of government support for India’s Micro, Small and Medium Enterprises (MSMEs).

The report was launched by Dr. Arvind Virmani, Member, NITI Aayog, and Shri B. V. R. Subrahmanyam, Chief Executive Officer, NITI Aayog.

The study presents a detailed blueprint to streamline scheme implementation, strengthen inter-ministerial coordination, and improve delivery of credit, skills, marketing, innovation, and technology support to MSMEs—key drivers of employment and inclusive growth.

Addressing Fragmentation in MSME Support

The Ministry of MSME currently implements 18 schemes spanning finance, skill development, marketing assistance, innovation and R&D, technology upgradation, and infrastructure. While these programmes have supported MSME growth, the report finds that overlapping objectives and fragmented execution across ministries often result in duplication, inefficiencies, and limited outreach.

The report argues that effective convergence and rationalisation can simplify access for enterprises, improve outcomes, and ensure better use of public resources.

Two-Pronged Convergence Framework

NITI Aayog recommends a two-pillar approach to convergence:

• Information convergence: Integrating government-generated data across central and state levels to improve coordination, strengthen governance, and enable data-driven decision-making.

• Process convergence: Aligning and unifying schemes to reduce redundancies, streamline operations, and create a cohesive MSME support ecosystem through mergers, shared components, and inter-ministerial collaboration.

Key Recommendations

AI-Powered Centralised MSME PortalThe report proposes a single, AI-enabled digital platform integrating MSME schemes, compliance requirements, finance options, and market intelligence. Drawing on global best practices, the portal would include:

• Information and process modules

• Compliance tracking

• Market research tools

• AI chatbots, dashboards, and mobile access for real-time support

Cluster Development Scheme IntegrationIt recommends converging SFURTI with the MSE-Cluster Development Programme (MSE-CDP), including:

• A dedicated sub-scheme for traditional industries

• Unified governance under MSE-CDP

• Consolidated funding with earmarked resources to protect crafts, arts, and endangered traditional industries

Rationalising Skill Development ProgrammesSkill initiatives should be reorganised into a three-tier structure:

1. Entrepreneurship and business skills

2. MSME technical skills

3. Training for rural and women artisans

This would merge overlapping schemes while retaining targeted programmes for inclusion and traditional crafts.

Dedicated MSME Marketing Assistance WingThe report proposes establishing a specialised Marketing Wing with:

• A domestic arm to support participation in exhibitions, trade fairs, and buyer-seller meets

• An international arm to facilitate global market access through overseas trade fairs and B2B engagements

Integrating ASPIRE with MSME InnovativeThe ASPIRE scheme should be integrated into MSME Innovative as a special category for agro-rural enterprises. Existing ASPIRE funding would continue, while future MSME Innovative budgets would earmark resources for agro-rural incubators, expanding access to advanced incubation support.

Protecting Targeted and Flagship Programmes

The report stresses that convergence must not dilute targeted interventions. Schemes such as the National SC/ST Hub and Promotion of MSMEs in the North Eastern Region (NER) should be safeguarded. Large flagship programmes like PMEGP and PM Vishwakarma are recommended to remain independent due to their scale and strategic importance.

A Cautious, Outcome-Driven Approach

To optimise resources and reduce administrative burdens, NITI Aayog advocates cautious convergence—merging schemes with overlapping objectives while preserving distinct programme identities. Where mergers are not feasible, the report recommends enhanced collaboration through joint capacity-building and shared administrative platforms.

Throughout the transition, the report emphasises the need to protect beneficiaries, manage change carefully, and rigorously track outcomes to ensure sustained impact.

The report positions convergence as a critical reform lever to strengthen MSMEs’ role in driving productivity, employment, innovation, and India’s long-term economic growth.