NITI Aayog Releases Report On Improving MSME Efficiency Through Scheme Convergence

New Delhi, Jan 15 (KNN) NITI Aayog CEO B.V.R. Subrahmanyam and S.C.L. Das, Secretary, Ministry of Micro, Small and Medium Enterprises (MSME), on Thursday released a report titled “Achieving Efficiencies in the MSME Sector Through Scheme Convergence.” 

The report reviews the existing landscape of government support for MSMEs and proposes a framework to improve coordination among various schemes run by different ministries and departments.

Objectives of the Study

Speaking at the release, Subrahmanyam said, “The report focuses on how existing MSME schemes can be better utilised without creating new programmes. It offers practical, actionable suggestions that can be implemented at the MSME and ministry levels.”

The main objective is to improve the effectiveness of government schemes by reducing duplication, expanding outreach, and making better use of public resources. As part of the exercise, 18 schemes have been identified for potential convergence.

Why Convergence Is Needed

MSMEs play a key role in India’s economic growth, employment generation and exports. However, the report notes that multiple overlapping schemes across ministries have led to fragmented implementation, low awareness among enterprises and delivery inefficiencies.

The report identifies convergence as a way to simplify the support system, reduce administrative complexity and ensure that benefits reach MSMEs more effectively at both central and state levels.

Types of Convergence

The study outlines two forms of convergence. Information convergence involves integrating government data across portals and departments to improve coordination and decision-making. 

Process convergence focuses on aligning scheme design and delivery by consolidating similar programmes and simplifying procedures.

Review of Schemes and Best Practices

The report examines major MSME schemes covering areas such as credit support, skill development, technology upgradation, marketing and exports, cluster development and public procurement. It also assesses how these schemes are implemented across states, highlighting differences in delivery and uptake.

Drawing on international and domestic best practices, the report points to the benefits of centralised digital platforms, single-window services and unified outreach systems to help MSMEs access multiple schemes more easily.

Stakeholder Feedback

According to the MSME Secretary, “the government is working closely with states and industry partners, while also pursuing deregulation, decriminalisation of laws, and measures to address supply-side gaps.”

Consultations with officials, MSME associations, banks and industry bodies identified common challenges, including limited awareness of schemes, complex application processes, weak coordination between central and state agencies, and the absence of unified digital platforms.

Key Recommendations

The report recommends convergence between specific schemes such as the Procurement and Marketing Support (PMS) Scheme and the International Cooperation (IC) Scheme, while encouraging collaboration where full convergence is not possible. It also calls for coordinated governance mechanisms.

Other suggestions include setting up a centralised digital portal for all MSME schemes, aligning similar programmes to reduce overlaps, linking skill development initiatives with enterprise support, strengthening procurement and market access through platforms like GeM, and improving coordination among innovation and technology support schemes.

Way Forward

The report, supported by the Administrative Staff College of India (ASCI) as the knowledge partner, underlines that successful convergence will require sustained cooperation across ministries, stronger digital infrastructure, and continuous engagement with MSMEs.

By simplifying the support ecosystem and strengthening linkages, the government can enhance the impact of its interventions and enable MSMEs to contribute more effectively to India’s growth objectives.

(KNN Bureau)