NITI Aayog report calls for scheme convergence to boost MSME efficiency
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NITI Aayog on Thursday released a detailed report aimed at improving the efficiency of government support for micro, small and medium enterprises (MSMEs) by strengthening coordination among existing schemes.
Titled “Achieving Efficiencies in MSME Sector through Convergence of Schemes”, the report lays out a clear road map to make MSME schemes easier to access, reduce duplication, and improve their overall impact. The report was launched by Dr. Arvind Virmani, Member at NITI Aayog and B.V.R. Subrahmanyam, Chief Executive Officer at NITI Aayog.
Focus on better coordination and delivery
According to the report, the goal is to improve outcomes for MSMEs by “streamlining scheme implementation, strengthening inter-ministerial coordination, and enhancing the delivery of financial, skill, marketing, and innovation support.” It reviews existing central government schemes for MSMEs, checks how well they work together, and draws lessons from best practices in India and abroad.
The report notes that the Ministry of MSME currently runs 18 schemes covering areas such as credit, skill development, marketing, innovation, technology upgrades, and infrastructure. While these schemes have supported MSME growth, the report points out that overlapping objectives and fragmented implementation often lead to inefficiencies and limited outreach. It highlights that “effective convergence and rationalisation of schemes can simplify access for beneficiaries” and help ensure better use of public resources.
January 2026
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Two-pronged convergence framework
To address these challenges, the report suggests a two-part approach: information convergence and process convergence. Information convergence focuses on integrating data at central and state levels to improve coordination and decision-making. Process convergence aims to align and unify schemes to reduce duplication and improve service delivery.
One of the key proposals is a Centralized Digital Portal for MSMEs. The report recommends “an AI-powered centralized digital platform integrating MSME schemes, compliance, finance, and market intelligence.” The portal would include AI chatbots, dashboards, and mobile access to provide real-time support to enterprises.
The report also suggests merging or aligning several schemes. These include the convergence of cluster development schemes like SFURTI and MSE-CDP, rationalising skill development programmes into a three-tier structure and creating a dedicated Marketing Assistance Wing with domestic and international components.
On innovation support, the report recommends integrating ASPIRE into MSME Innovative as a special category for agro-rural enterprises, while allowing existing ASPIRE funds to continue.
At the same time, the report stresses the need to protect focused initiatives such as the National SC/ST Hub and MSME promotion in the Northeastern Region. Large schemes like PMEGP and PM Vishwakarma are advised to remain independent due to their scale and importance.
Overall, NITI Aayog underlines that convergence should be done carefully, keeping beneficiary interests at the centre, managing transitions smoothly, and closely tracking outcomes to ensure long-term impact for the MSME sector.