Top government think-tank Niti Aayog on Thursday proposed converging MSME schemes to boost efficiency and outreach, recommending an AI-powered central portal, integration of overlapping clusters, skill and innovation programmes, creation of a dedicated marketing wing, and rationalisation while preserving flagship and targeted initiatives.
NITI Aayog released a comprehensive report, “Achieving Efficiencies in MSME Sector through Convergence of Schemes”, on Thursday, outlining a strategic roadmap to enhance the effectiveness of government support for India’s Micro, Small, and Medium Enterprises (MSMEs).
The study presents a detailed blueprint to improve outcomes for MSMEs by streamlining scheme implementation, strengthening inter-ministerial coordination and enhancing the delivery of financial, skill, marketing and innovation support.
From Fragmentation to Unity
The Ministry of MSME currently administers 18 schemes covering credit, skill development, marketing, innovation and R&D, technology upgradation and infrastructure. While these initiatives have supported MSME growth, overlapping objectives and fragmented implementation often lead to duplication, inefficiencies and limited outreach. The report argued that rationalisation and convergence can simplify access for beneficiaries, reduce confusion and ensure better translation of resources into outcomes.
The report recommends a two-pronged approach—information convergence and process convergence. Information convergence would integrate government data at the central and state levels to improve coordination and governance. Process convergence would align and unify schemes by merging similar initiatives, combining common components and fostering collaboration across ministries and states.
Digital and Industrial Blueprint
Among its major recommendations is the creation of an AI-powered, centralized digital portal for MSMEs, integrating schemes, compliance, finance and market intelligence through chatbots, dashboards and mobile access. It also proposes integrating the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) scheme with the MSE–Cluster Development Programme through a unified governance structure, while earmarking funds to protect traditional industries.
Skill development initiatives are proposed to be rationalised into a three-tier structure covering entrepreneurship, technical skills and training for rural and women artisans. To streamline market access, the report suggests a dedicated Marketing Assistance Wing with domestic and international components. It further recommends integrating ASPIRE into the MSME Innovative programme as a special category for agro-rural enterprises.
At the same time, the report stresses safeguarding targeted initiatives such as the National SC/ST Hub and programmes for the North Eastern Region, while retaining large flagship schemes like PMEGP and PM Vishwakarma.