Powering India’s Growth: Top MSME Schemes & Subsidies 2025

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India is among the fastest-growing economies globally. The nation is currently the fourth-largest economy in the world and is on its way to becoming the third-largest, with an estimated GDP of USD 7.3 Trillion by 2030. This momentum is not only strengthening India’s economic resilience but also opening lucrative opportunities for businesses, investors, and technology providers aligned with the country’s growth vision. With real GDP projected to rise by 7.8% in the first quarter of FY 2025-26, up from 6.5% the previous year, the country is anticipated to have a positive outlook for the future.

India’s growth story is majorly driven by the Micro, Small, and Medium Enterprises (MSMEs), with the sector contributing to 30.1% of the GDP in 2022-2023. These enterprises are the backbone of innovation, employment, and regional development. To strengthen this vital sector, the government has introduced a range of schemes and subsidies. With a focus on improving access to finance and technology upgrades, these initiatives aim to help scale operations and explore new markets. As such, the number of exporting MSMEs increased sharply from 52,849 in 2020-21 to 1,73,350 in 2024-25, with exports rising from INR 3.95 Lakh Crore to INR 12.39 Lakh Crore, reflecting their growing impact on global trade.

Below is the list of top government initiatives for MSMEs in 2025, ranging from monetary aid and procurement policies to capacity building and market integration. These initiatives are tailored to address critical needs of small businesses in India and align with broader national priorities such as Make in India, digital adoption, and promotion of exports.

1. PM Vishwakarma

PM Vishwakarma, a Central Sector Scheme, was launched on September 17, 2023, by the Prime Minister to deliver end-to-end support to artisans and craftspeople who rely on traditional hand skills and tools. It covers artisans engaged in 18 specific trades, passed down from generation to generation, following a guru-shishya model of traditional training, both within families and among informal artisan communities. The scheme is entirely funded by the Government of India, with an initial payment of Rs. 13,000 crores for the period from 2023-24 to 2027-28.

Key Benefits of the Scheme:

  • Recognition through PM Vishwakarma Certificate and ID Card: Enables the applicant’s recognition as a “Vishwakarma” and makes him/her eligible to avail the benefits under the scheme.
  • Skill Enhancement: Aims to enhance the capabilities of traditional artisans and craftspeople, through the inclusion of three elements: skill assessment, basic training, and advanced training.
  • Toolkit Incentive: Providing Rs. 15,000 to the beneficiary after skill assessment at the start of basic training, a digital guide, and short video tutorials to educate them in skilful handling of the modern devices in their businesses.
  • Credit support: Rs 1 Lakh assistance under the scheme to deliver easy entrance to subsidized institutional credit for enterprise expansion.
  • Incentive for Digital Payments: Beneficiaries receive Re. 1 for each eligible digital transaction, capped at 100 transactions per month, credited directly to their bank account via the Aadhaar Payment Bridge System (APBS).
  • Marketing Support: The beneficiaries are extended quality certification, branding, advertising, publicity, and other marketing activities to stimulate their connection to the value chain of MSMEs and established companies.

Achievements of the Scheme:

  • No. of applications submitted: 2,71,84,033
  • Stage 1 verification completed: 1,68,06,877
  • Stage 2 verification completed: 75,97,154
  • Stage 3 verification completed: 30,23, 935
  • No. of applicants successfully registered: 29,99,891

2. Pradhan Mantri Mudra Yojna or PMMY

Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched on April 8, 2015, for providing loans up to INR 10 Lakhs to the non-corporate, non-farm small and micro enterprises in manufacturing, trading, services, and allied agricultural activities. To bolster support for aspiring entrepreneurs, the finance minister declared a proliferation in the loan limit to INR 20 Lakh during the Union Budget 2024-25, effective from October 24, 2024.

Key Benefits of the Scheme:

The scheme classifies loans into three segments to meet various business requirements:

  • Shishu: Startups and micro-enterprises are given loans up to INR 50,000
  • Kishore: Businesses in growth stages are provided with loans from INR 50,001 to INR 5,00,000 Lakh
  • Tarun: Well-established enterprises are eligible for loans from INR 5,00,001 to INR 10,00,000 Lakh
  • Tarun Plus: Entrepreneurs who have benefited from and successfully reimbursed previous loans under the 'Tarun' category are given INR 10 Lakh and up to INR 20 Lakhs

Achievements of the Scheme:

Category Women Borrowers- Disbursed (INR) Minority Borrowers- Disbursed (INR) New Entrepreneurs – Accounts (INR) New Entrepreneurs – Sanctioned (INR) New Entrepreneurs – Disbursed (INR) Unique Borrowers –Sanctioned (INR)
Shishu 1,08,472.51 15,759.66 88,49,101 29,445.41 28,839.75 44,891.82
Kishore 1,00,370.49 20,766.30 34,06,239 62,290.58 60,407.02 24,575.57
Tarun 13,454.27 8,562.27 7,57,456 70,294.35 68,861.13 19,120.58


3. Udyam Registration Portal

The Udyam Portal, launched on July 1, 2020, by the Ministry of Micro, Small & Medium Enterprises (MSME), Government of India, is the authorized digital platform for MSME registration. It provides enterprises with a paperless, cost-free, and real-time registration process, helping numerous small businesses struggling with complicated regulatory frameworks and financial accessibility. By enabling faster verification and smoother compliance, it significantly reduces barriers for MSMEs and supports their integration into the formal economy. Apart from this, the Government introduced the Udyam Assist Platform on November 11, 2023, aiming to bring these micro-enterprises under the formal sector.

Achievements of the Scheme:

  • No. of registered MSMEs: 5,93,38,604 (majorly classified as micro-enterprises)
  • No. of total jobs provided: over 25.18 crore individuals

4. Prime Minister’s Employment Generation Programme (PMEGP)

Prime Minister's Employment Generation Programme (PMEGP), launched in August 2008, is a central sector scheme implemented by Khadi and Village Industries Commission (KVIC) serving as the nodal agency. It was created by combining two earlier schemes that operated until 31st March 2008, namely the Prime Minister's Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP). The scheme aims to generate employment in both rural and urban areas by promoting new self-employment ventures and micro enterprises. It seeks to bring together traditional artisans and unemployed youth, offering them opportunities for sustainable livelihoods within their own regions to reduce migration to cities.

Who can apply?

  • Any person who is 18 years of age or older.
  • A minimum educational qualification of Class VIII is required for projects with costs exceeding INR 10 Lakh in the manufacturing sector and INR 5 Lakh in the business/service sector.
  • Existing units (PMEGP/REGP/MUDRA) are qualified for the 2nd Loan.

Key Benefits of the Scheme:

  • Margin Money Subsidy: Used for the establishment of new micro-enterprises/units, out of which INR 100 Crores or as approved by the competent authority, will be reserved for each FY towards the allocation of Margin Money (subsidy) for the upgradation of existing PMEGP/REGP/MUDRA units.
  • Setting up of new micro enterprises: They can access manufacturing projects up to INR 50 Lakh and service projects up to INR 20 Lakh. The contributions of beneficiaries for the general category are 10% and 5% for special categories, with subsidies of 15–25% in urban areas and 25–35% in rural areas.

Achievements of the Scheme:

  • No. of enterprises supported by the scheme: 89,118
  • Margin money subsidy disbursed: INR 3,093.87 Crore
  • Employment opportunities generated: 7,12,944

5. Stand Up India Scheme

The Stand-up India scheme, launched on 05th April 2016 and implemented by the Department of Financial Services (DFS), Ministry of Finance, aims to promote entrepreneurship among the Scheduled Caste/Scheduled Tribe and Women. It facilitates bank loans ranging from over INR 10 Lakh to INR 1 Crore for establishing Greenfield enterprises in the trading, manufacturing, and services sectors, as well as activities allied to agriculture. At least 51% of the shareholding and controlling stake must be held by an SC/ST entrepreneur or a woman entrepreneur, for non-individual enterprises. Since its launch, the total sanctioned amount for the scheme rose from INR 14,431.14 Crore in October 2018 to INR 61,020.41 Crore by March 2025. Moreover, the applicant should be at least 18 years of age and not be in default to any bank/financial institution.

Achievements of the Scheme:

Beneficiary Group Accounts (2018) Accounts (2024) Loan Amount 2018 (INR Crore) Loan Amount 2024 (INR Crore)
SC 9,399 46,248 1,826.21 9,747.11
ST 2,841 15,228 574.65 3,244.07
Women Entrepreneurs 55,644 1,90,844 12,452.37 43,984.10


In conclusion, India’s MSME sector is emerging as a vital driver of economic growth, employment, and innovation. The government schemes, subsidies, and digital platforms mentioned above are making it easier for entrepreneurs to access credit, upgrade technology, and expand into new markets. With supportive policies and rising opportunities in manufacturing, services, and exports, MSMEs are well-placed to strengthen India’s economy while promoting inclusive and sustainable development.

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