NITI Aayog on Thursday released a comprehensive report outlining a roadmap to enhance efficiency and impact in India’s Micro, Small and Medium Enterprises (MSME) sector through better convergence of government schemes. Titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes”, the report was launched by NITI Aayog Member Arvind Virmani and Chief Executive Officer B.V.R. Subrahmanyam.
The report provides a strategic framework to streamline MSME support by improving inter-ministerial coordination, simplifying implementation processes and strengthening the delivery of credit, skill development, marketing, innovation and technology-related assistance.
Currently, the Ministry of MSME administers 18 schemes spanning credit access, infrastructure, technology upgradation, innovation, marketing and skills. While these initiatives have supported MSME growth, the report highlights that overlapping objectives and fragmented implementation across ministries often lead to duplication, inefficiencies and limited outreach to beneficiaries.
According to NITI Aayog, rationalising and converging schemes can simplify access for MSMEs, reduce confusion, improve utilisation of public resources and ensure that policy interventions translate into tangible outcomes on the ground.
The report recommends a two-pronged approach to convergence. Information convergence focuses on integrating government-generated data at central and state levels to strengthen governance, improve coordination and enable evidence-based decision-making. Process convergence aims to align and unify schemes by merging similar initiatives, combining common components and fostering collaboration across ministries and states to streamline service delivery.
One of the key proposals is the creation of an AI-powered centralised digital portal for MSMEs. The platform would integrate information on schemes, compliance requirements, finance and market intelligence, and provide real-time support through AI chatbots, dashboards and mobile access, drawing on global best practices.
Other major recommendations include converging cluster development schemes such as SFURTI and MSE-CDP, rationalising skill development programmes into a three-tier structure, establishing a dedicated Marketing Assistance Wing, and integrating the ASPIRE scheme into MSME Innovative for agro-rural enterprises.
The report stresses that flagship programmes like PMEGP and PM Vishwakarma should remain independent, while targeted initiatives for SC/ST entrepreneurs and the North Eastern Region must be safeguarded. Emphasising cautious implementation, NITI Aayog called for protecting beneficiary interests, managing transitions carefully and rigorously tracking outcomes to ensure sustained impact.
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