NITI Aayog released a comprehensive report on the MSME (Micro, Small, and Medium Enterprises) sector on January 15, 2026, recommending the convergence of 18 centrally administered MSME schemes to improve efficiency and impact. The report was launched by NITI Aayog CEO B.V.R. Subrahmanyam and was prepared by the Administrative Staff College of India (ASCI).
The report analyses 18 centrally administered schemes targeting the MSME sector, identifying overlaps, gaps, and implementation challenges. It recommends a two-dimensional convergence strategy: information convergence (making all scheme details available on a single platform) and process convergence (integrating application and approval workflows across schemes). This would eliminate duplication and reduce the compliance burden on MSMEs.
A key recommendation is the development of an AI-powered digital portal that would serve as a single window for MSME scheme discovery, application, tracking, and grievance redressal. By leveraging artificial intelligence, the portal can match enterprises with the most relevant schemes based on their size, sector, location, and needs — reducing information asymmetry that often leaves small enterprises unaware of available support.
MSMEs are the backbone of the Indian economy, contributing approximately 30% to GDP, 45% to manufacturing output, and over 48% to exports. They employ more than 110 million people, making them critical to employment generation and inclusive growth. Despite their importance, MSMEs face persistent challenges including fragmented access to credit, technology, markets, and institutional support schemes.
The convergence of 18 MSME schemes under a unified digital architecture represents a significant policy reform initiative, expected to reduce transaction costs for enterprises and improve the reach and effectiveness of government support programmes.