The Government of India has consistently supported Micro, Small, and Medium Enterprises (MSMEs) through various schemes aimed at boosting their growth, enhancing productivity, and ensuring long-term sustainability. As we step into the financial year 2025–26, it’s crucial for MSME owners to be aware of the government schemes that can provide financial assistance, tax benefits, and other support.
In this blog, we’ll take a look at the top government schemes MSMEs shouldn’t miss in FY 2025–26 to ensure their growth and success.
1. Pradhan Mantri Mudra Yojana (PMMY)
What is it?
The Pradhan Mantri Mudra Yojana (PMMY) aims to provide financial assistance to small businesses and MSMEs that are not able to access traditional bank loans. The scheme offers three types of loans—Shishu, Kishore, and Tarun—based on the business’s funding needs.
Key Features:
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Loan amounts up to ₹10 lakhs.
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Collateral-free loans.
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Loans for non-corporate, non-farm small/micro businesses.
Why Should MSMEs Apply?
PMMY provides easy access to working capital and helps MSMEs expand their operations without the burden of high-interest rates.
2. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
What is it?
CGTMSE offers collateral-free credit facilities to MSMEs, helping them avail of loans without the need for asset-based security. The scheme covers both term loans and working capital loans.
Key Features:
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Collateral-free loans for MSMEs.
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Coverage of loans up to ₹2 crore.
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Credit guarantee up to 75% of the loan amount.
Why Should MSMEs Apply?
This scheme provides MSMEs with much-needed financial support to grow their businesses, even if they don’t have substantial assets to offer as collateral.
3. Stand-Up India Scheme
What is it?
Stand-Up India aims to promote entrepreneurship among women and scheduled caste or scheduled tribe (SC/ST) communities. This scheme offers loans for setting up greenfield businesses in the manufacturing, services, or trading sectors.
Key Features:
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Loan amount ranging from ₹10 lakhs to ₹1 crore.
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Available to at least one woman or SC/ST entrepreneur per bank branch.
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Loans can be used for starting new businesses or expanding existing ones.
Why Should MSMEs Apply?
If you’re a woman entrepreneur or belong to an SC/ST community, this scheme can provide the funding you need to establish or expand your business.
4. Technology Upgradation Fund Scheme (TUFS)
What is it?
The TUFS is aimed at improving the technology base of the MSME sector, especially for small industries in the textile and garment sectors. It helps businesses adopt state-of-the-art technology to improve their productivity.
Key Features:
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Interest reimbursement for MSMEs.
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Financial assistance for upgrading machinery and equipment.
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Focus on promoting sustainable business practices.
Why Should MSMEs Apply?
For MSMEs in the textile, apparel, and other specific sectors, this scheme offers the financial support needed to modernize their operations and improve efficiency.
5. Udyam Registration and Udyam Assistance
What is it?
The Udyam Registration scheme is a government initiative to facilitate the registration of MSMEs. This registration offers access to various benefits, including credit support, tax rebates, and other government schemes.
Key Features:
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Free registration for MSMEs.
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Benefits under the GST and other government schemes.
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Priority sector lending from banks.
Why Should MSMEs Apply?
Udyam Registration provides MSMEs with a host of benefits, including easy access to credit, and government aid, and helps in getting recognition for their business.
6. MSME Development Assistance Scheme (MSME-DAS)
What is it?
The MSME-DAS scheme aims to provide assistance to MSMEs in various sectors, including infrastructure, marketing, and innovation. The scheme supports the creation of infrastructure for MSMEs at the state and district levels.
Key Features:
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Financial support for infrastructure development.
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Capacity building and market development initiatives.
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Support for innovation and technology adoption.
Why Should MSMEs Apply?
The MSME-DAS scheme is particularly beneficial for businesses looking to build their infrastructure, expand into new markets, or innovate in their business processes.
7. National Manufacturing Competitiveness Programme (NMCP)
What is it?
The NMCP aims to enhance the competitiveness of MSMEs in the manufacturing sector. The program supports MSMEs in adopting modern management practices, quality control, and technology upgrades.
Key Features:
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Training and capacity-building support.
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Funding for technology adoption and improvement.
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Focus on enhancing product quality and competitiveness.
Why Should MSMEs Apply?
If you are in the manufacturing sector, this program can help you modernize operations, reduce production costs, and boost your competitiveness in the market.
8. Make in India Scheme
What is it?
Launched by the Government of India, the Make in India initiative encourages domestic manufacturing and innovation. It provides MSMEs with access to better infrastructure, marketing support, and financial aid.
Key Features:
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Promotes innovation and R&D in manufacturing.
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Support for setting up new industries and expanding existing ones.
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Assistance with branding and marketing of products.
Why Should MSMEs Apply?
This scheme fosters innovation, competitiveness, and market expansion, making it ideal for MSMEs looking to expand their reach in the domestic and global markets.
9. Prime Minister’s Employment Generation Programme (PMEGP)
What is it?
The PMEGP scheme promotes the creation of new self-employment opportunities through the establishment of micro-enterprises. It offers financial assistance for setting up small businesses in both rural and urban areas.
Key Features:
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Subsidy support for the establishment of new enterprises.
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Up to 35% subsidy on project costs.
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Loans up to ₹25 lakhs for manufacturing and ₹10 lakhs for services.
Why Should MSMEs Apply?
PMEGP is ideal for entrepreneurs looking to establish small businesses with financial assistance and minimal collateral.
10. Digital MSME Scheme
What is it?
The Digital MSME Scheme encourages MSMEs to adopt digital technologies, helping them modernize operations, improve efficiency, and boost competitiveness.
Key Features:
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Financial assistance for implementing digital solutions.
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Training on digital tools and technologies.
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Support for e-commerce adoption.
Why Should MSMEs Apply?
For MSMEs looking to digitize their operations and improve business processes, the Digital MSME scheme is an excellent opportunity.
Conclusion
The government has implemented numerous schemes to support MSMEs and ensure they have access to financial resources, technology, and the infrastructure needed to grow. The schemes listed above are vital for MSMEs looking to scale their business in FY 2025-26.
As an MSME owner, it’s crucial to keep up to date with these programs and take advantage of the support offered. These schemes can provide not only financial assistance but also opportunities to upgrade technology, expand market reach, and increase competitiveness.
