The Micro, Small, and Medium Enterprises (MSME) sector continues to play a crucial role in India’s economic development, contributing nearly 30% to the GDP and employing over 11 crore people. Recognizing their critical role, the Indian government has introduced several new and upgraded schemes in 2025 to address the sector’s pressing needs—financing, skill-building, technology, and ensure inclusive support for MSMEs across the board.
Let’s dive into the latest schemes and enhancements you should know about:
1. Revised MSME Classification (Effective 2025)
|
Category |
Investment Limit |
Turnover Limit |
|
Micro |
Up to ₹2.5 crore |
Up to ₹10 crore |
|
Small |
Up to ₹25 crore |
Up to ₹100 crore |
|
Medium |
Up to ₹125 crore |
Up to ₹500 crore |
Why it matters: More businesses now qualify as MSMEs and can avail the associated benefits like loans, tenders, and subsidies.
2. Micro Enterprise Credit Card (ME-Card)
A game-changer for micro-businesses and traders:
- Credit limit up to ₹5 lakh
- Linked to Udyam Registration and Credit Guarantee coverage
- Helps fund working capital, inventory, and business operations
- 10 lakh cards to be issued initially
Best for: Street vendors, small shopkeepers, rural entrepreneurs
3. Enhanced Credit Guarantee Scheme (CGTMSE)
Updated Limits:
- Micro/Small Enterprises: Coverage up to ₹10 crore
- Startups & Exporter-MSMEs: Up to ₹20 crore
- Annual fees and guarantee fees have been reduced to lower the cost of borrowing
Impact: Encourages banks and NBFCs to lend more freely to MSMEs without collateral
4. PM Vishwakarma Yojana
- Aimed at traditional artisans and craftspeople (e.g., carpenters, blacksmiths, weavers).
- Offers:
- ₹15,000 toolkit e-voucher
- ₹500/day skill training allowance
- Collateral-free loan up to ₹3 lakh at subsidized interest
- Branding and marketing support
Best for: Traditional skills-based occupations and rural artisans.
5. Entrepreneurship Scheme for Women, SC/ST
- Focused on first-time entrepreneurs from underrepresented communities.
- Up to ₹2 crore in term loans at concessional rates.
- Capacity-building, mentorship, and handholding support included.
- Focus on creating 5 lakh new women, SC/ST entrepreneurs
Best for: Aspiring entrepreneurs from marginalized backgrounds.
6. ZED Certification (Zero Defect Zero Effect)
- Provides subsidy for quality certification and eco-friendly manufacturing.
- Offers up to ₹2 lakh subsidy for MSMEs improving product standards.
- Linked with international market access and brand recognition.
- Priority access to government tenders and buyers
Best for: MSMEs looking to enhance exports or quality assurance.
7. Technology Centers & TEQUP
- New MSME Technology Centers being established across India (e.g., Coimbatore, Delhi).
- Provide training in robotics, 3D printing, CAD/CAM, and product prototyping.
- Under TEQUP: 25% capital subsidy (up to ₹10 lakh) for adopting green and smart technologies.
Best for: MSMEs in manufacturing and engineering sectors.
8. BharatTradeNet (BTN) & Export Promotion
Unified digital portal for:
- Streamline export documentation
- Facilitate access to export finance
- Integrate MSMEs with global supply chains
- Offer trade information and compliance support
Best for: MSMEs aiming to scale globally and tap into cross-border eCommerce.
9. MSME Procurement & EMD/Tender Exemptions
- 25% government purchase mandate from MSMEs
- 4% reserved for SC/ST, 3% for women-led enterprises
- EMD (Earnest Money Deposit) exemption for Udyam-registered MSMEs
- Penalty for corporates delaying payments beyond 45 days
Tip: Udyam registration is essential to claim these benefits
10. PMEGP (Updated Version)
- Updated Prime Minister’s Employment Generation Programme offers:
- Higher subsidy (up to 35–40%) for rural/urban ventures.
- Simplified application process.
- Encourages manufacturing and service-based micro businesses.
Best for: New entrepreneurs looking to start micro-units with subsidy support.
Quick Action Steps for MSMEs
- Register on Udyam Portal: This is mandatory for most schemes
- Apply through your bank/NBFC: For CGTMSE, ME-Card, PMEGP, etc.
- Use official portals:
o https://udyamregistration.gov.in
o https://pmvishwakarma.gov.in
- Track tenders: Leverage EMD exemption and preference through https://eprocure.gov.in
Final Thoughts
The Indian government’s 2025 MSME reforms are more inclusive, technology-driven, and growth-oriented than ever before. Whether you're a new entrepreneur, an artisan, a trader, or a small exporter—there’s a dedicated scheme to support your journey.
🔹 Access easy finance
🔹 Upgrade to smart technology
🔹 Sell globally via digital platforms
🔹 Benefit from reduced compliance and timely payments
With the right support and timely action, your MSME can scales to new heights.
Don’t wait - leverage these initiatives to scale smarter, compete better, and grow sustainably. Having any query, consult NOW with our Odoo Expert Accounting Team 👇