NITI Aayog has released a comprehensive report titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes,” laying out a strategic roadmap to enhance the effectiveness of government support for India’s Micro, Small, and Medium Enterprises (MSMEs).
The report was launched by Arvind Virmani, Member, NITI Aayog, and B.V.R. Subrahmanyam, Chief Executive Officer, NITI Aayog.
The report 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.
It evaluates existing Government of India schemes for the MSME sector, assesses the current level of convergence among them, and identifies best practices from central, state and international experiences.
Based on this assessment, it offers actionable recommendations to unlock convergence opportunities and undertake corrective measures to improve efficiency, outreach and impact.
Highlighting the need for convergence, the report notes that the Ministry of MSME currently administers 18 schemes covering areas such as credit assistance, skill development, marketing support, innovation and R&D, technology upgradation and infrastructure development.
While these schemes have supported MSME growth, overlapping objectives and fragmented implementation across ministries often result in duplication, inefficiencies and limited outreach. Effective convergence and rationalisation, the report argues, can simplify access for beneficiaries, improve outcomes and amplify overall impact.
The report proposes a two-pronged framework for convergence comprising information convergence and process convergence. Information convergence focuses on integrating government-generated data at the central and state levels to improve coordination, decision-making and governance.
Process convergence aims at aligning and unifying schemes to reduce redundancies, streamline operations, and improve service delivery through mergers of similar schemes, consolidation of common components, and enhanced collaboration across ministries and states.
Among the key recommendations is the creation of an AI-powered centralized digital portal for MSMEs that integrates schemes, compliance, finance and market intelligence. Drawing on global best practices, the proposed platform would include information, process, compliance and market research modules, supported by AI chatbots, dashboards and mobile access for real-time support.
The report also recommends convergence of cluster development schemes by integrating the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises–Cluster Development Programme (MSE-CDP). It proposes a dedicated sub-scheme for traditional industries, a unified governance structure and consolidated funding with earmarked resources to preserve crafts and traditional industries while improving scale and efficiency.