Top five MSME Schemes for all Business Owners

The MSMEs in India are showered with many schemes, and the list goes on. however, these 5 MSME schemes top the list and are beneficial for all business owners. MSME categorizes micro, small, and medium enterprises depend on the turnover and capital of the business. (Please read this to understand the eligibility criteria for MSME).  

MSME registration comes under the MSMED act, which facilitates the promotion and development to improve the functions of the enterprise any enterprise can apply for an MSME registration these include: 

  • Proprietorship enterprises 
  • Enterprises managed by the Hindu Undivided Family 
  • Enterprises run by an association of individuals  
  • Co-operative societies 
  • Partnership firms  
  • Enterprises operated by companies or undertakings  

After registration, the enterprise will become eligible to enjoy the benefits that come under the MSMED act. the benefits of MSME are pretty widely known and understood by entrepreneurs. still, they always overlook some of the pivotal schemes brought up by the government for MSME-registered companies.  

These schemes are preached by the government to enhance your business strategies. Top MSME Schemes That Could Help Your Enterprise Grow: 

1. Udayam registration (previously known as Udyog Aadhar) 

Before gearing into avail the benefits of MSME, the business owners shall get Udayam registration, which is previously known as Udyog Aadhar, introduced by the government to simplify the MSME registration process for all business owners. MSMEs are identified with a unique number to categorize as micro, small and medium enterprises. 

The registration could be done online with a single click and the applicant doesn’t even require to visit the office personally. Udayam registration (Udyog Aadhar) is filed via self-declaration with just the details of the enterprise. There is no hard and fast rule that one Aadhar numbered applicant can apply for only one company. It is okay to file more than one Udyog Aadhar with a similar Aadhar number. 

There is an essential requirement for providing such as Aadhar number, industry name, address, bank details, and you will have the MSME certificate in hand. 

2. Zero Effect, Zero Defect (ZED) 

Zero defect is for quality, zero effect on environment. The ZED model is scheme, which was meant to raise the quality levels of the products produced by companies in the MSME sector. Quality Council of India (QCI) will play a vital role in the implementation of the model. The manufacturing units are assessed by their products and awarded suitable ratings of bronze, silver, gold, diamond, and platinum. 

A ZED platinum rating, international standard, and follows global best practices. The segregation of the enterprise will depend on: 

  • The industry has chosen 
  • The quality of the product 

Environmental assessing factors are taken into consideration, like: 

  • Process Automation 
  • Process Capability 
  • Design 
  • Safety and Hygiene Issues 
  • Waste Management 
  • Defect Rate 
  • People Management 

3. Quality Management Standards and Quality Technology Tools 

Quality management standards (QMS) or quality technology tools (QTT) scheme is an initiative taken by the Ministry of Micro, Small and Medium Scale Enterprises. The scheme is to be launched under the National Manufacturing Competitiveness Program (NMCP). The objective of this scheme is to encourage the MSMEs to become much more productive and produce better quality products at a competitive price. 

The scheme is optimizing the use of all the available resources effectively and improve product quality. This scheme helps the producer to understand the products manufactured abroad and presently used in the Indian market to produce in better quality. The scheme predicts the use of Indian products as the primary goal. 

4. Incubation Centers 

This MSME schemes provides excellent opportunities to the innovators for the development of their new innovative ideas for producing new innovative products for markets and commercialization. The scheme offers up to Rs. 8 lakh grants for the incubation of innovative idea. 

This scheme made to promote emerging technological and knowledgeable innovative ventures that would seek the nurturing from actual professionals. It also encourages and supports the untapped creativity of small individual innovators. 

Then turns individual innovators into technology-based entrepreneurs. It also promotes networking and forging of various linkages with the other constituents of the innovative chain for the commercialization of their developments. 

Host institutions (HI) are the ones who explore the new innovative ideas from the incubate of various sectors that may be existing. It also helps the students of multiple streams participate and get their new ideas nurtured through the host institutions as a part of their studies and pursue a career to build a company out of their innovation. 

5. Credit Linked Capital Subsidy Scheme: 

The Credit Linked Capital Subsidy Scheme (CLCSS) is a technological up-gradation for MSME enterprises. Which had first been launched in October 2000 and then revised from September 29, 2005. 

The main motto of this scheme is to facilitate the technological up-grade for MSME enterprises with an upfront capital subsidy of 15 percent. It further provides institutional finance of up to Rs 1 crore to help to interpret and approve the improved technology in the specified 51 sub-sectors/nature of production. 

The other primary objective is to help enterprises upgrade their plant & machinery with modern technology, with or without expansion. And also provides new MSME enterprises the opportunity to set up their facilities with appropriate eligible and proven technology duly approved under the scheme’s guidelines. 

The maximum limit of eligible loans for the calculation of the subsidy under the scheme is Rs 100 lakh. Presently, more than 1,500 well established or improved technologies included under 51 sub-sectors, and they have been approved under the scheme as well. 


MSMEs play a vital role in the Indian economy and there are several schemes available to support their growth and development. These schemes provide financial assistance, technological up-gradation, and other benefits to help MSMEs to grow and succeed. Business owners should take advantage of these schemes to improve their operations and increase their competitiveness in the market. 

However, it’s always recommended to consult with the experts and understand the guidelines of the schemes before applying for them. With the right support, MSMEs can continue to be a driving force in the Indian economy. And also create jobs and opportunities for all.


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