Ahead of the Vishwakarma Puja in September this year, the PM Vishwakarma scheme — for artisans and craftspeople by the MSME Ministry — was among the top MSME schemes searched on Google in August. According to Google Trends, the scheme — launched by Prime Minister Narendra Modi in September last year to support craftspeople working with their hands and tools — had higher searches in comparison to other major schemes by the government. Here’s a quick overview of the top MSME schemes Googled in August:
PM Vishwakarma
PM Vishwakarma scheme offers skill upgradation, credit support, incentives for digital transactions and marketing support to beneficiaries who have not availed loans under similar credit-based government schemes in the past five years.
The scheme targets beneficiaries involved in 18 trades including fishing net maker, tailor (darzi), washerman (dhobi), garland maker (malakaar), barber (nai), doll and toy maker (traditional), basket/ mat/ broom maker/ coir weaver, mason (rajmistri), cobbler (charmkar/shoesmith/footwear artisan), sculptor (moortikar/stone carver), stone breaker, potter (kumhaar), goldsmith (sonar), locksmith, hammer and tool kit maker, blacksmith (lohar), armourer, boat maker, carpenter (suthar).
According to the available data from the scheme’s website, out of 2.37 crore applications received, 17.48 lakh applications have been registered for benefits.
Government e-Marketplace
The government’s public procurement platform Government e-Marketplace (GeM), which allows MSMEs to gain direct access to government buyers, was also among the top MSME-related initiatives searched in August.
The order value of goods and services sold by MSMEs on GeM has grown significantly over the past few years. It doubled in FY24 to Rs 4.03 lakh crore with over 62 lakh orders processed vis-a-vis Rs 2.01 lakh crore in FY23, amid growth in procurement by various government departments and enterprises.
Currently, 39 per cent of the order value on GeM comes from micro and small enterprises.
GeM CEO PK Singh had told media in July this year that the platform is the second largest public procurement portal in the world following Korea’s KONEPS. Singh informed that GeM will be the biggest procurement platform by the end of this financial year.
Udyam Registration
The MSME registration portal launched by the MSME Ministry post Covid in July is the window for new enterprises to access various benefits attached to it particularly access to priority credit by banks and other financial institutions.
The portal has grown to a whopping 4.9 crore MSME registrations reporting over 21 crore jobs. The registration count also includes more than 2 crore registrations to nano units or informal micro enterprises (IMEs) which are exempted from the Goods and Services Tax (GST) regime.
The platform has gained significance under the government’s formalisation drive to bring enterprises in the informal sector into the formal economic fold and enable them for benefits to scale faster and cost effectively.
Currently, 73 lakh Udyam units are in manufacturing while 2.15 crore are service units. 2.43 lakh enterprises on Udyam are exporting units with an export value of Rs 13.06 lakh crore.
Pradhan Mantri Mudra Yojana
Mudra is among the flagship schemes of the Modi government aimed at promoting entrepreneurship and financial inclusion in the non-corporate and non-farm sectors.
Mudra loans are classified into three categories based on the stage of business growth: Shishu loans are up to Rs 50,000 for new units, Kishore loans are between Rs 50,001 and Rs 5 lakh for businesses needing capital for expansion, and Tarun loans between Rs 5 lakh and Rs 10 lakh are provided to relatively established businesses looking for scaling up.
To further boost the scheme, Finance Minister Nirmala Sitharaman in this year’s budget had doubled the credit limit to Rs 20 lakh. However, it is for existing new borrowers.
The scheme had sanctioned 6.67 crore loans involving Rs 5.41 lakh crore in FY24, of which Rs 5.32 lakh crore were disbursed, according to the available data on its portal.
Prime Minister’s Employment Generation Programme (PMEGP)
Launched in 2008 and implemented by the Khadi & Village Industries Commission (KVIC), the PMEGP scheme provides credit up to Rs 50 lakh (increased from earlier up to Rs 25 lakh) to aspiring entrepreneurs for launching their new manufacturing units and up to Rs 20 lakh (from Rs 10 lakh earlier) for new service units.
The scheme was also extended over the 15th Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore.
According to the data shared in the Lok Sabha in July this year by Shobha Karandlaje, Minister of State in the MSME Ministry, around 9.65 lakh micro enterprises have been assisted under PMEGP with a margin money subsidy of Rs 25,263 crore till July 12 this year since its inception in 2008-09. The micro units have provided an estimated employment to 78.84 lakh people.
As of July 12 in the current financial year, around 7,444 micro enterprises have been assisted with a subsidy of Rs 299.25 crore providing an estimated employment to 59,552 people.