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NITI Aayog Releases Report on Improving MSME Efficiency

  • 16 Jan 2026

On 15th January 2026, NITI Aayog released a comprehensive report titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes”, outlining a strategic roadmap to streamline government support and enhance outcomes for India’s Micro, Small and Medium Enterprises (MSMEs).

Key Points:

  • Objective: To improve the effectiveness of MSME support by strengthening inter-ministerial coordination, simplifying implementation, and enhancing delivery of finance, skill, marketing and innovation-related assistance.
  • Current Challenge: The Ministry of Micro, Small and Medium Enterprises administers 18 schemes, but overlapping objectives and fragmented implementation across ministries lead to duplication, inefficiencies and limited outreach.
  • Rationale for Convergence: Rationalisation and convergence of schemes can simplify access for beneficiaries, reduce confusion, and improve translation of public expenditure into measurable outcomes.
  • Two-Pronged Strategy:
    • Information Convergence: Integration of government-generated data at central and state levels to strengthen governance and enable informed decision-making.
    • Process Convergence: Alignment and unification of schemes by merging similar initiatives, combining common components, and fostering inter-ministerial and Centre-State collaboration.
  • Digital Platform Proposal: Recommendation to create an AI-powered centralised MSME digital portal integrating scheme information, compliance requirements, finance options and market intelligence, supported by AI chatbots, dashboards and mobile access.
  • Cluster Development Reform: Proposal to integrate Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), with a dedicated sub-scheme for traditional industries.
  • Skill Development Rationalisation: Recommendation for a three-tier skill framework covering entrepreneurship and business skills, MSME technical skills, and training for rural and women artisans.