NITI Aayog proposes convergence of 18 MSME schemes — stakeholders stress need for simplicity and last-mile impact

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Synopsis

NITI Aayog has proposed convergence of 18 central MSME schemes to reduce duplication and improve efficiency, with stakeholders emphasising that implementation and ease of access will be critical to the proposal’s success.

Summary

NITI Aayog, the Government of India’s policy think tank, has recommended the convergence of 18 centrally administered schemes for micro, small and medium enterprises (MSMEs) in a bid to streamline delivery, reduce overlaps, and improve policy outcomes across the sector.

The proposal, outlined in a recent report, highlights that MSME-related schemes currently span multiple ministries and departments, covering areas such as credit, skill development, infrastructure, technology upgradation, innovation, and market access. According to the report, fragmented implementation and administrative silos have often diluted the impact of these initiatives and increased complexity for beneficiaries.

To address these issues, NITI Aayog has suggested both information convergence — integrating data across schemes for better monitoring and decision-making — and process convergence, which would involve aligning delivery mechanisms, simplifying procedures, and improving coordination between ministries and between the Centre and states.

The report also underscores the role of digital platforms and single-window systems in enabling MSMEs to discover, apply for, and track scheme benefits more easily. Policy observers believe that, if executed effectively, convergence could reduce compliance burdens and improve uptake, particularly among smaller enterprises with limited administrative capacity.

At the same time, stakeholders caution that convergence must go beyond administrative restructuring and translate into tangible ease for MSMEs on the ground.

Reacting to the proposal, Kamal Krishna, District Head, Bengaluru, All India Professionals’ Congress, said the intent behind convergence was sound, but outcomes would depend on execution.

“Streamlining MSME schemes is a step in the right direction, but convergence should not become an exercise in bureaucratic consolidation alone. For small businesses, success will be measured by how simple it becomes to access support, how quickly benefits reach them, and whether last-mile delivery actually improves. Without that focus, even well-designed frameworks risk falling short,” he said.

Experts add that meaningful convergence will require close coordination with state governments, clear accountability frameworks, and continuous feedback from MSME stakeholders to ensure that reforms reduce friction rather than introduce new layers of complexity.