Govt plans fresh policy interventions to strengthen MSME manufacturing ecosystem

The Ministry of Micro, Small, and Medium Enterprises (MSME) has launched a nationwide consultation exercise to strengthen the MSME ecosystem and their manufacturing base, with around 2,000 suggestions received so far from MSMEs across the country, Mercy Epao, Joint Secretary, MSME ministry, said on Wednesday.

Speaking at a seminar on ‘Investment Economics in India: Manufacturing, FDI and Industrial Transformation’, organised by FICCI and the Chintan Research Foundation, Epao said the recommendations emerged from a nationwide campaign that covered around 75 locations and involved consultations with MSMEs, industry associations, and state governments.

“We have around 2,000-odd recommendations coming from MSMEs. We are looking forward to a national day where we would like to present them, and hopefully some policy amendments or new interventions will come to support our MSMEs, especially to strengthen their manufacturing base,” Epao said.


According to her, MSMEs across states such as Telangana, Tamil Nadu, and Punjab were facing similar challenges, prompting the government to consolidate feedback for possible policy action. The consultations also involved ministries such as the Ministry of Environment, Forest and Climate Change and included awareness drives on GSTN 2.0 filing and customs procedures.

Emphasising the role of technology in improving MSME competitiveness, Epao said the MSME ministry currently operates 20 Technology Centres and is setting up 100 Extension Centres, with the long-term objective of establishing technology centres across every state and major district. “It is our dream that every state and every major district will have a technology centre someday,” she said, adding that these centres provide hands-on training to develop an industry-ready workforce equipped for Industry 4.0 technologies.

Although exports fall under the Commerce Ministry’s domain, she said the MSMEs account for nearly half of India’s exports, and therefore, require specialised support.

The MSME ministry is also working on establishing a dedicated MSME export centre at the National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad, to help small businesses tap overseas markets more effectively. “We feel there should be one centre where MSMEs can learn documentation, identify markets for their products, and understand the standards and certifications required,” Epao said.

The proposed centre would help businesses leverage India's free trade agreements and opportunities emerging from multilateral platforms such as BRICS, she said.

Referring to the recently concluded BRICS SME Forum in Agra, Epao highlighted significant export opportunities for Indian MSMEs across BRICS member and partner countries. She said the MSME Ministry is working with the Department of Science & Technology (DST) and the Council of Scientific and Industrial Research (CSIR) to facilitate technology transfer and create new market opportunities, particularly across the Global South.

To encourage first-time exporters, she said that the ministry offers support, such as reimbursement of export promotion council registration fees, assistance for export insurance premiums for eligible firms, and help with certification costs required for overseas markets.

Epao further urged MSMEs to adopt Zero Defect Zero Effect (ZED) certification and lean manufacturing practices to improve quality, productivity, and resource efficiency. She said the ministry’s cluster development programme continues to support sector-specific manufacturing clusters, while the government’s Champions Scheme promotes innovation, design and intellectual property development.

Epao also highlighted the World Bank-supported Raising and Accelerating MSME Performance (RAMP) programme, saying it has enabled states to prepare strategic investment plans and scale up entrepreneurship through targeted funding.

On sustainability, she said the ministry’s MSME Green Investment and Financing for Transformation (GIFT) initiative promotes green technologies through concessional financial assistance; the scheme provides interest reimbursement and term loans for green investments.

She also mentioned that the ministry has introduced an Online Dispute Resolution (ODR) platform to address delayed payments, allowing MSMEs to file grievances, participate in proceedings remotely and receive digitally recorded settlements. Fresh delayed-payment cases are being routed through the new portal, while the earlier Samadhaan system is being used for transition and existing cases.

Under the Trade Enablement and Marketing for MSMEs (TEAMS) scheme, the government aims to onboard 500,000 MSMEs onto the ONDC network, reserving 50% of the target for women entrepreneurs, while providing support for cataloguing, packaging and branding. “We are always evolving. We are ready to listen to the industry and partner with industry associations,” Epao said.