MSME Development Scheme by Govt. of India

Introduction to MSME Design Innovation Scheme

The Ministry of Micro, Small, and Medium Enterprises (MSME) has launched the Design Scheme under the MSME Innovative Scheme to support MSMEs in enhancing their design capabilities. Through this initiative, MSMEs can avail themselves of expert advice and support for various design-related aspects, from new product development to the enhancement of existing product portfolios. This scheme aims to help MSMEs realize their design objectives, improve product aesthetics, functionality, and marketability, and, ultimately, contribute to their growth and competitiveness in the market.

The Design Scheme is a multifaceted program designed to help MSMEs integrate design as a crucial component of their business strategy. The scheme is divided into two major parts: Design Projects and the Design Awareness Programme. Each part is tailored to cater to the different needs of MSMEs, whether they need specific design interventions or a general awareness of how design can benefit their operations.

Overview of the Scheme

The Design Scheme focuses on providing MSMEs with access to expert design consultation and financial assistance for the development of design-related products or processes. The scheme provides support for new design strategies and product development, as well as enhancing existing product offerings through professional design interventions. The goal is to empower MSMEs with design knowledge and skills that will allow them to become more innovative and competitive in the global market.

Two Key Components of the Design Scheme

1. Design Project The Design Project component of the scheme aims to help MSMEs develop new design strategies or enhance existing products by engaging design consultants. The financial assistance provided under this component can be used for hiring professional designers or consultants who will work on product development and design interventions.The Government of India will contribute a significant portion of the total project cost:
   • Micro Enterprises: 75% of the total project cost, up to a maximum of ₹40,00,000.
   • Small & Medium Enterprises: 60% of the total project cost, up to a maximum of ₹40,00,000.
   The remaining project cost will be borne by the MSMEs and deposited to the Implementing Agency (IA). The funding for this project is distributed in three stages:
   • Stage 1: Strategy & Concept – 40% of the total project cost
   • Stage 2: Detail Design – 30% of the total project cost
   • Stage 3: Successful Completion of the Prototype/Product & Final Report Submission – 30% of the total project cost
   This staged payment approach ensures that funds are released as the project progresses, ensuring proper accountability and a structured approach to design intervention.
2. Design Awareness Programme The Design Awareness Programme aims to raise general awareness about the power and value of design for businesses. The primary objective of this part of the scheme is to sensitize MSMEs about the importance of incorporating design and innovation into their operations.Activities under this component include:
   • Seminars
   • Workshops
   • Talks
   • Conferences
   These activities are designed to help MSMEs understand the role of design in enhancing the functionality, aesthetics, and market appeal of their products. The ultimate goal is to instill a design-oriented culture among MSMEs and encourage them to view design as a critical factor in business success.

Benefits of the Design Scheme

The Design Scheme offers several significant benefits to eligible MSMEs, including:

• Financial Assistance for Design Projects: MSMEs can receive up to 75% (for Micro Enterprises) or 60% (for Small and Medium Enterprises) of the total project cost for design-related work. This helps reduce the financial burden of hiring design consultants and developing new products or prototypes.
• Support for Student Projects: The scheme also supports design work done by students, offering financial assistance up to ₹2,50,000. The Government of India will contribute 75% of the total project cost for student-led design projects.
• Professional Design Intervention: MSMEs gain access to experienced design consultants who can offer valuable insights, helping businesses create innovative products that are market-ready and aligned with consumer demands.
• Staged Grant Distribution: The total project cost is disbursed in stages, ensuring that MSMEs receive funds as milestones are achieved, providing a structured and accountable process.
• Awareness and Training: The Design Awareness Programme helps MSMEs better understand how design and innovation can drive business growth. This encourages them to integrate design thinking into their daily operations, improving product quality and customer satisfaction.

Eligibility Criteria

To be eligible for the Design Scheme, the following conditions must be met:

1. Business Type: The applicant must be a registered Micro, Small, or Medium Enterprise.
2. Valid Udyam Registration: The MSME must have a valid Udyog Aadhaar Memorandum (UAM) or Udyam Registration certificate.
3. Financial Contribution: MSMEs must be willing to contribute the remaining 25% (Micro) or 40% (Small and Medium) of the total project cost, which will be deposited with the Implementing Agency (IA) after approval.

Application Process

The application process for the Design Scheme is entirely online and involves a few straightforward steps. Here’s a step-by-step guide on how MSMEs can apply:

Step 1: Registration

• Visit the official portal at https://innovative.msme.gov.in/.
• Click on the Design section on the homepage.
• On the next page, click on the Join Design Scheme button.
• Enter your Udyam Registration Number and the Registered Mobile Number associated with your Udyam registration.
• Click on the Validate button to proceed.

Step 2: Document Submission

• Once your details are validated, you will be required to upload the following documents:
  • Udyog Aadhaar Memorandum (UAM) or Udyam Registration (UR) certificate.
  • The UAM Registered Mobile Number used during registration.

Step 3: Application Review

• After submitting the required documents, your application will be reviewed by the Implementing Agency (IA). If everything is in order, the project will be approved, and financial assistance will be disbursed according to the specified stages.

Step 4: Monitoring & Final Submission

• Once the project is completed, a final report must be submitted, detailing the work done, the prototype/product developed, and the overall outcomes of the design intervention.
• At this stage, the final 30% of the financial assistance will be disbursed.

Documents Required for Application

For MSMEs to apply for the Design Scheme, they must submit the following documents:

1. Udyog Aadhaar Memorandum (UAM) or Udyam Registration (UR) certificate.
2. Registered Mobile Number linked to the UAM or Udyam Registration.
3. Any additional documents requested by the Implementing Agency (IA), which may vary based on the type of design intervention requested.

Conclusion

The Design Scheme under the MSME Innovative Scheme is a valuable initiative that offers MSMEs the opportunity to enhance their design capabilities and drive innovation within their industries. Through this program, MSMEs can access expert design advice, receive financial assistance, and participate in awareness programs that emphasize the power of design for business success.

By supporting MSMEs in incorporating design thinking into their product development process, the scheme aims to help businesses improve their competitiveness and profitability. Whether it’s through professional design consultancy or awareness-raising seminars, the Design Scheme provides the tools MSMEs need to stay ahead in a rapidly evolving market.

Eligible MSMEs should take full advantage of this scheme by completing the online registration and submitting the necessary documents to unlock the potential benefits of design innovation.