Ministry of Micro, Small and Medium Enterprises (MoMSME)

The Ministry of Micro, Small and Medium Enterprises (MoMSME) is responsible for the promotion and development of the dynamic MSME sector.


Coir Board is a statutory body tasked to promote coconut fibre industry in India. The demand of coir products is rising due to its environment-friendliness.

Khadi and Village Industries Commission (KVIC) is a statutory body engaged in promoting and developing khadi and village industries, to create non-farm income generating opportunities in the rural areas. It is the nodal agency for implementation of PMEGP (Prime Minister Employment Generation Programme).

Khadi and village industries are two national heritages of India, and were promoted as means of self-reliance during the pre-independence Indian National Movement. The Khadi act defines khadi as cloth woven on handlooms from handspun cotton, woollen or silk yarn in India.

National Small Industries Corporation (NSIC) is a public sector undertaking tasked to promote the growth of micro and small enterprises, and to accelerate their commercialisation and integration with supply chains. NSIC provides various kinds of services to the small enterprises in the areas of raw material procurement, product marketing, credit rating, technology transfer, adoption of modern management practices, etc.

Schemes and Initiatives:

Pradhan Mantri Employment Generation Programme (PMEGP): A credit linked subsidy programme for establishment of micro enterprises in rural as well as urban areas. Coir Udyami Yojana is merged with it.

Zero Defect Zero Effect (ZED) is a scheme that provides financial support to encourage environmentally friendly manufacturing (zero effect on environment) of high quality products (zero defect) for export purposes by the MSMEs. ZED rated MSMEs get subsidies for adopting technology, registering domestic and international patent, purchasing testing equipment, and a 0.5% concession on loans.

Credit Linked Capital Subsidy Scheme for Technology Upgradation provides 15% subsidy upfront capital subsidy for technology upgradation to micro and small enterprises (MSEs). Under PM Mudra Yojana, the Micro Units Development and Refinance Agency Ltd (MUDRA)has been set up to provide funding to the non-corporate, non-farm MSMEs. The scheme provides loans upto a maximum of Rupees 10 lakh, through partnering banks.

There are several schemes for development of Khadi, Village, and Coir industries, including Coir Vikas Yojana (now merged with PMEGP), and the scheme for regeneration of traditional industries (SFURTI).

Procurement and Marketing Support Scheme facilitates market linkages for implementation of the Public Procurement Policy, under which certain public procurement is mandatorily made from the MSME sector. Public procurement refers to purchase of goods and services by the government.

TREAD scheme for women– Trade Related Entrepreneurship Assistance and Development: It provides grants to NGOs for promoting self-employment in non-farm sector for women.

Entrepreneurship and Skill Development Programmes, including A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), are undertaken by the ministry.

Infrastructure Development and Technology Upgradation schemes of the government follow the geographical cluster based approach, wherein they target an area where particular kind of industries are prominent, in order to get maximum results from a given investment.

Also see:
Small Industries and Development Bank of India (SIDBI)

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