Niti report suggests convergence of govt schemes to unlock greater efficiency in MSME sector

New Delhi, Jan 15 (PTI) Government think tank NITI Aayog on Thursday pitched for convergence of the government schemes to unlock greater efficiency in the micro, small and medium enterprises (MSMEs) sector.

The Aayog in a report has suggested creation of a centralised portal for MSMEs and convergence of Cluster Development Schemes and skill development programmes.

The report 'Achieving Efficiencies in MSME Sector through Convergence of Schemes', also called for creation of a dedicated marketing wing with domestic and international components to streamline the MSME marketing support.

The domestic wing would facilitate MSME participation in national exhibitions, trade fairs, and buyer-seller meets, while the international wing would support global market access through overseas trade fairs, B2B events, and buyer-seller meets, the report said.

"There is need of empowering MSMEs by streamlining scheme implementation, strengthening inter-ministerial coordination, and enhancing service delivery," it said.

The report also recommended integrating Scheme For Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE) into MSME Innovative as a special category for agro-rural enterprises.

"Existing ASPIRE funds can continue, while future MSME Innovative budgets earmark a share for agro-rural incubators. This integration broadens access to advanced incubation without restricting," it said.

The report was launched by NITI Aayog member Arvind Virmani.

It recommended a two-pronged approach to convergence, comprising information convergence and process convergence.

"Information convergence focuses on integrating government-generated data at the central and state levels to improve coordination, enable informed decision-making, and strengthen governance outcomes.

"Process convergence aims at aligning and unifying schemes to reduce redundancies, streamline operations, and improve service delivery. This includes merging similar schemes, combining common components, and fostering collaboration across ministries and states to create a cohesive MSME support ecosystem," the report said.

It presented 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 evaluated 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 offered actionable recommendations to unlock convergence opportunities and undertake corrective measures to improve efficiency, outreach, and impact of MSME schemes.

The ministry of MSME 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 underscored 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.PTI BKS BKS ANU ANU