NITI Aayog Lays Out a Clear Roadmap to Make MSME Support Smarter, Faster and More Impactful

For millions of small entrepreneurs across India, government schemes are often the backbone of growth—helping them access credit, skills, markets and technology. Yet, navigating this vast ecosystem of programmes can sometimes feel overwhelming, with overlaps, paperwork and fragmented implementation diluting their true potential. Recognising this gap, NITI Aayog has now stepped in with a comprehensive blueprint to make government support for MSMEs more efficient, coherent and outcome-driven.

On Wednesday, NITI Aayog released an in-depth report titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes”, outlining how better coordination and rationalisation of existing schemes can significantly enhance the impact of public spending on India’s Micro, Small and Medium Enterprises (MSMEs).

Rather than proposing entirely new programmes, the report takes a hard look at what already exists—and how it can work better together.

Why Convergence Matters for MSMEs

At present, the Ministry of MSME administers as many as 18 schemes spanning credit support, skilling, marketing assistance, innovation, technology upgradation, quality certification and infrastructure development. While these initiatives have played a critical role in MSME growth over the years, NITI Aayog’s assessment finds that many schemes have overlapping objectives and operate in silos across ministries and departments.

This fragmented approach often leads to duplication of efforts, inefficiencies in fund utilisation and, most importantly, limited outreach to intended beneficiaries. For MSMEs, this translates into confusion, higher compliance burden and missed opportunities.

The report argues that effective convergence—both in design and execution—can simplify access for entrepreneurs, ensure resources translate into tangible outcomes on the ground, and significantly amplify the overall impact of government interventions.

A Two-Pronged Framework for Smarter Implementation

To address these challenges, NITI Aayog proposes a clear two-pronged convergence framework:

Information Convergence:
This pillar focuses on integrating government-generated data across central and state levels. By enabling seamless data sharing, it aims to improve coordination between ministries, support informed decision-making and strengthen governance outcomes for MSME-focused schemes.

Process Convergence:
The second pillar targets the way schemes are designed and delivered. It recommends aligning and unifying programmes with similar objectives, merging overlapping components, and fostering stronger collaboration between central ministries and states to reduce redundancies and streamline service delivery.

Together, these two approaches seek to make government support simpler, faster and more responsive to MSME needs.

AI, Digital Platforms and a Single Window for MSMEs

One of the report’s most forward-looking recommendations is the creation of an AI-powered, centralised digital portal for MSMEs. Inspired by global best practices, this platform would bring together scheme information, compliance requirements, financial support options and market intelligence under one roof.

The proposed system would use AI chatbots, real-time dashboards and mobile access to guide entrepreneurs, answer queries and provide personalised support—dramatically reducing friction and improving ease of doing business for MSMEs across the country.

Reimagining Clusters, Skills and Market Access

The report also makes a strong case for convergence at the programme level.

In cluster development, it recommends integrating the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises Cluster Development Programme (MSE-CDP). The proposal includes a dedicated sub-scheme for traditional industries, a unified governance structure and consolidated funding, with earmarked resources to preserve crafts and endangered traditional sectors while improving scale and efficiency.

On the skilling front, NITI Aayog suggests rationalising multiple initiatives into a three-tier structure—covering entrepreneurship and business skills, MSME-specific technical skills, and focused training for rural and women artisans. This would reduce overlap, improve coordination and still retain targeted programmes that promote inclusion and traditional livelihoods.

To strengthen market access, the report proposes setting up a dedicated MSME Marketing Assistance Wing. The domestic arm would support participation in national exhibitions and buyer-seller meets, while the international arm would help MSMEs tap global markets through overseas trade fairs and B2B engagements.

Innovation Without Dilution

In the innovation ecosystem, the report recommends integrating the ASPIRE scheme into MSME Innovative as a special category for agro-rural enterprises. While existing ASPIRE funds would continue, future allocations under MSME Innovative would earmark resources for agro-rural incubators—ensuring wider access to advanced incubation facilities without losing the scheme’s original intent.

Protecting What Already Works

Importantly, NITI Aayog cautions against blanket mergers. The report strongly underlines the need to safeguard targeted schemes such as the National SC/ST Hub and the Promotion of MSMEs in the North Eastern Region, which address specific regional and social needs.

Large flagship programmes like PMEGP and PM Vishwakarma are also recommended to remain independent, given their scale and strategic economic importance.

The overall approach, the report notes, should be one of cautious convergence—merging where objectives overlap, encouraging collaboration where full integration is not feasible, and always prioritising beneficiary interests. It also stresses careful transition management and rigorous outcome tracking to ensure long-term impact.

A Policy Push Towards Impact, Not Just Spending

The report was released by Dr. Arvind Virmani, Member, NITI Aayog, and B. V. R. Subrahmanyam, Chief Executive Officer, NITI Aayog.

At its core, the roadmap signals a shift in policy thinking—from adding more schemes to making existing ones work better together. For India’s MSMEs, this could mean easier access, faster support and more meaningful outcomes—turning government intent into real, on-ground impact.