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MSME Schemes: Challenges

MSME Schemes: Challenges

At a cabinet meeting on June 1, Mr. Nitin Gadkari, Minister of Road Transport & Highways, Micro, Small & Medium Enterprises, Government of India, shared that the definition of “Medium” enterprises under the MSME definitions has been expanded to include even more units. Some data about MSMs were also shared:

  •  There are 6 crores registered MSMEs in the country
  • Which provide jobs to over 11 crore people
  •  And contribute 29 percent to the GDP.
  •  That is made up of 6.11 percent of manufacturing GDP
  •  And 24.63% of Services GDP
  •  Also, they contribute 33.4% of India’s manufacturing output.

Scheme Confusion

It is worth noting that even though there are multiple schemes related to the MSME segment, there are practical issues in availing them:

Difficult to search: It seems almost as if the effort has been put in place that the MSME schemes are not easily searchable. There is not a single MSME portal that hosts information on all the MSME related schemes. It’s up to the MSMEs to scout multiple websites and hope to find something of value.

Limited information available online: When you do manage to find the schemes, on clicking the link it opens a PDF page which was put there years ago. For many such schemes, it seems that the time limit has expired. For eg. for the Pradhan Mantri Employment Generation Scheme, the PDF says it was in effect only up to 2019-20. Similar is the case for other schemes such as the Credit Linked Capital Subsidy Scheme.

The multiplicity of authorities: While some schemes are apparently governed by the District Industrial Committees, many are under the District Magistrate of the district, and yet others are offered by different banks, NBFCs, etc.

Why is a simple sole proprietor manufacturer with a small being forced to navigate these departmental by-lanes?

It is high time that all the MSME schemes be made available online:

Their existence, their details, suitability for specific forms of businesses, application, follow- up and final approval.

Related Topic:
MSME Registration – Role of CA Community

New MSME Portal

Prime Minister Narendra Modi has launched a new website for the MSME sector:


CHAMPIONS stands for:

Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength

As per the website, there are three basic objectives of this new portal:

  • To help the MSMEs in this difficult situation in terms of finance, raw materials, labour, permissions, etc.
  •  To help the MSMEs capture new opportunities including manufacturing of medical items & accessories.
  •  To identify the sparks, i.e., the bright MSMEs who can withstand at present and become national and international champions.

Within the website are links to other MSME portals:

  •  MSME Schemes
  •  MSME Samadhan Portal
  •  MSME Sambhandh
  •  MSME Champions Start-up
  •  MSME Registration

However, it is not yet clear what purpose this new website serves since there’s nothing new on this portal itself. At the most, what it does do is provide a single launching point for all things related to MSME.

It is hoped that in due course of time the government will make this portal a single point contact for all MSME related activities.

The Indian farmers have been freed of the clutches of the middlemen with a new government launched mobile application. But the MSMEs are still waiting for their independence from the bureaucracy, so to speak.

Finally, let’s look at the latest MSME definition:

MSME Schemes: Challenges

Read the copy:

MSME Schemes: Challenges

Profile photo of CA Rahul Parashar CA Rahul Parashar

Simplifying international and indirect taxation provisions, guiding Trusts & MSMEs claim their exemptions and incentives

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