Law Notify, January 15, 2026 : NITI Aayog has released a comprehensive report titled Achieving Efficiencies in MSME Sector through Convergence of Schemes, laying out a roadmap to streamline government support for Micro, Small and Medium Enterprises and improve on-ground outcomes.
The report was launched by NITI Aayog Member Arvind Virmani and Chief Executive Officer B. V. R. Subrahmanyam. It focuses on strengthening coordination among ministries, simplifying scheme implementation, and improving delivery of finance, skills, marketing, and innovation support to MSMEs.
According to the report, the Ministry of MSME currently runs 18 schemes covering credit, skill development, marketing, technology upgradation, innovation, and infrastructure. While these schemes have supported MSME growth, overlapping objectives and fragmented execution across ministries often result in duplication, inefficiencies, and limited outreach.
The report argues that better convergence and rationalisation of schemes would make access easier for beneficiaries, reduce confusion, and ensure public funds translate more effectively into measurable outcomes, thereby increasing the overall impact on the MSME sector.
To achieve this, a two-pronged convergence strategy has been proposed. Information convergence would integrate government data at both central and state levels to strengthen coordination, improve decision-making, and enhance governance. Process convergence would focus on aligning and unifying schemes to cut redundancies, streamline operations, and improve service delivery through mergers of similar schemes and closer inter-ministerial and state-level collaboration.
A key recommendation is the creation of an AI-powered central digital portal for MSMEs. The proposed platform would bring together information on schemes, compliance, finance, and market intelligence, and offer real-time support through AI chatbots, dashboards, and mobile-based access, drawing on global best practices.
Other major recommendations include integrating cluster development initiatives by converging the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises–Cluster Development Programme, while carving out a dedicated sub-scheme for traditional industries. Skill development programmes are proposed to be reorganised into a three-tier structure covering entrepreneurship and business skills, MSME technical skills, and training for rural and women artisans.
The report also suggests setting up a dedicated Marketing Assistance Wing with domestic and international components to support MSMEs in trade fairs, exhibitions, and buyer-seller meets. It further recommends integrating the ASPIRE scheme into MSME Innovative as a special category for agro-rural enterprises, while ensuring continued funding.
At the same time, the report stresses that targeted initiatives such as the National SC/ST Hub and schemes for MSMEs in the North Eastern Region must be protected. Large flagship programmes like PMEGP and PM Vishwakarma, it says, should continue independently due to their scale and strategic importance.
Emphasising the need for careful implementation, NITI Aayog underlines that convergence must safeguard beneficiary interests, manage transitions prudently, and closely track outcomes to ensure long-term impact. The recommendations aim to improve efficiency, expand outreach, and strengthen MSMEs, which remain a critical engine of employment and economic growth in India.
