Ministry of MSME

The Ministry of Micro, Small and Medium Enterprises (MSME) is the central government body that sets policy and runs programmes for India's MSME sector. Its work centres on encouraging entrepreneurship, generating livelihoods, and supporting enterprise growth nationwide.

Among its initiatives is the Prime Minister's Employment Generation Programme (PMEGP), a credit-linked subsidy scheme delivered through the Khadi and Village Industries Commission (KVIC). The programme offers margin money via banks for manufacturing units up to INR 25 lakh and service units up to INR 10 lakh. Since 2008, it has supported over 9.69 lakh micro enterprises with subsidies exceeding INR 25,500 crore, creating work for an estimated 79 lakh people. Another scheme, ASPIRE (A Scheme for Promotion of Innovation, Rural Industry, and Entrepreneurship), focuses on innovation and rural enterprise. It has trained more than 1.16 lakh beneficiaries, with 18,444 moving into self-employment and 1,141 micro-enterprises set up.

The intended recipients are current and prospective owners of micro, small, and medium enterprises, rural entrepreneurs, and first-generation founders who need subsidised credit, margin money, skill development, or incubation support to start or grow their businesses.