Since most of the MSMEs operate in the rural areas, the Central Government has announced several schemes to support the development of this sector. Recently, in view of the economic hardship caused by COVID-19, the Central Government reclassified the criterion for defining an MSME. Under the revised criterion, the combined factors of investment in plant machinery and the turnover of business together, designated an enterprise as a MSME. This was a departure from the earlier classification that only took the investment into plant machinery as a consideration.
To address the skills shortage and deficiencies in technology, the Central Government has implemented several schemes in addition to loans, which are expected to generate more employment, increase exports, and improve productivity. Here are a few of them in no particular order.