India, Jan. 15 -- The Government of India has issued a release:
NITI Aayog today released a comprehensive report titled "Achieving Efficiencies in MSME Sector through Convergence of Schemes", outlining a strategic roadmap to strengthen the effectiveness of government support for India's Micro, Small and Medium Enterprises (MSMEs). The report was launched by Dr. Arvind Virmani, Member, NITI Aayog & Sh 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 and programmes 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, the report offers actionable recommendations to unlock convergence opportunities and undertake corrective measures to improve efficiency, outreach, and impact of MSME schemes.
Need for Convergence
The Ministry of MSME currently administers 18 schemes spanning critical support areas such as credit assistance, skill development, marketing support, innovation and R&D, technology and quality upgradation, and infrastructure development. While these initiatives have played a significant role in MSME growth, overlapping objectives and fragmented implementation across ministries often lead to duplication, inefficiencies, and limited outreach. The report underscores that effective convergence and rationalisation of schemes can simplify access for beneficiaries, ensure better translation of resources into outputs and outcomes, and reduce duplication and confusion, thereby amplifying overall impact.
Framework for Convergence
The report recommends a two-pronged approach to convergence, comprising information convergence and process convergence.
Key recommendations
The report also highlights the importance of safeguarding targeted initiatives such as the National SC/ST Hub and the Promotion of MSMEs in the North Eastern Region (NER). Large flagship programmes like PMEGP and PM Vishwakarma are recommended to remain independent, given their scale and strategic economic significance.
To optimise resources and reduce administrative redundancies, the report advocates a strategy of cautious convergence merging schemes with overlapping objectives while preserving the distinct focus of targeted programmes. Where full merger is not feasible, it recommends enhanced collaboration through joint workshops and shared capacity-building for administrators. Throughout the convergence process, the report stresses the need to safeguard beneficiary interests, carefully manage transitions, and rigorously track outcomes to ensure sustained impact.
Access the full report here: https://niti.gov.in/sites/default/files/2026-01/Achieving_Efficiencies_in_MSME_Sector_Through_Convergence_of_Schemes.pdf
Disclaimer: Curated by HT Syndication.
