New Delhi: NITI Aayog on Wednesday released a comprehensive report outlining a strategic framework to improve efficiency in the MSME sector through convergence of government schemes, as it seeks to streamline delivery, reduce duplication and widen beneficiary outreach.
Titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes”, the report was launched by Arvind Virmani, Member, NITI Aayog, and B V R Subrahmanyam, CEO, NITI Aayog. It evaluates existing central schemes for MSMEs and recommends structural reforms to strengthen inter-ministerial coordination and service delivery.
The Ministry of MSME currently administers 18 schemes across credit, skills, marketing, innovation, technology upgradation and infrastructure. While these have supported MSME growth, overlapping objectives and fragmented implementation have led to inefficiencies and limited reach, the report noted.
NITI Aayog argues that effective convergence can simplify access for enterprises, improve outcomes and ensure better utilisation of public resources.
At the centre of the recommendations is an AI-powered centralised digital portal for MSMEs, integrating information on schemes, compliance, finance and market intelligence. The platform would feature dashboards, AI chatbots and mobile access to provide real-time support to enterprises.
The report proposes a two-pronged approach:
Information convergence to integrate data across central and state governments for better governance and decision-making
Process convergence to align and unify schemes, reduce redundancies and streamline operations.
Among specific recommendations are:
Merging cluster development schemes, including integrating SFURTI with the MSE-CDP under a unified governance structure
Rationalising skill development programmes into a three-tier structure covering entrepreneurship, technical skills and training for rural and women artisans
Setting up a dedicated MSME Marketing Wing with domestic and international components to support market access.
The report also suggests integrating ASPIRE into MSME Innovative as a special category for agro-rural enterprises, while safeguarding targeted programmes such as the National SC/ST Hub and MSME initiatives for the North Eastern Region.
Large flagship schemes like PMEGP and PM Vishwakarma should remain independent due to their scale and strategic importance, the report said, advocating cautious convergence that preserves beneficiary interests while improving efficiency.
The recommendations come as MSMEs remain central to India’s employment and growth strategy, with policymakers increasingly focused on improving last-mile delivery and outcomes rather than adding new schemes.