If you want to give your products or services an edge in the market, the Design Clinic Scheme is here for you. This government initiative encourages MSMEs to integrate design into their businesses, making them more competitive, innovative, and resilient.
As a new MSME owner, you might face stiff competition, rapidly changing trends, and evolving customer needs. The government, through the Design Clinic Scheme, aims to help you meet these challenges by bringing design expertise to your doorstep. The scheme supports awareness, skill building, and funding for projects that incorporate design, making your offerings more customer-centric, efficient, and market-ready. With this scheme, you get practical support via seminars, workshops, and even funding for design projects, all in collaboration with top design institutes and professionals.
What is the Design Clinic Scheme for MSMEs?
The Design Clinic Scheme was launched during the 11th Five Year Plan (around 2009-10) by the Ministry of MSME, Government of India, under the National Manufacturing Competitiveness Programme. Its primary goal is to introduce and nurture a culture of design thinking and innovation among Indian MSMEs. It provides design expertise to help MSMEs improve their products and services and to boost their competitiveness to meet global standards and enable better market positioning. It also focuses on creating a sustainable design ecosystem through skilling and continuous learning. Additionally, it raises awareness of the value of design and promotes its integration within the MSME sector.
Objectives of the Design Clinic Scheme
To create awareness about the importance and benefits of design among MSMEs.
To equip you with practical know-how on integrating design into your business processes.
To support MSMEs in moving up the value chain from basic manufacturing to innovative product development.
To encourage original design and branding, making your products globally competitive.
To foster a sustainable ecosystem for continuous learning and application of design.
Key Features of the Design Clinic Scheme
This scheme is available only to MSMEs as defined in MSMED Act, 2006.
You get access to both awareness programmes (seminars and workshops) and hands-on project funding.
You can apply as a single MSME or as a group (cluster).
Expert guidance is provided for design need analysis, consulting, and project execution.
Detailed reporting and monitoring ensure your design projects get the support they need.
Funds under this scheme are generally grants, not loans, so interest rates and maturity periods do not apply.
You get to work with empanelled, qualified designers from reputed institutions like the National Institute of Design (NID).
Financial Assistance Offered Under the MSME Design Scheme
Here’s how the funding works for you:
The total project cost for design interventions can range from ₹15 lakh to ₹40 lakh, depending on the size and scope of the project.
The government contributes 60-75% of the project cost, with MSMEs covering the remaining percentage
The scheme offers financial support in the form of funding for seminars, workshops, and design projects.
The government contributes ₹60,000 per seminar, and up to 75% of the cost of workshops, with a cap of ₹3.75 lakh per workshop.
4,00,000 per workshop (75% from Government, 25% from participants)
For design projects, the government provides 75% funding for micro-enterprises and 60% for SMEs, for projects ranging from ₹15 lakh to ₹40 lakh.
Design Project Funding (for practical projects)
Applicant Type
Maximum Govt. Contribution
Percentage of Designer Fee Covered
Individual MSME or up to 3 units
Up to Rs. 9,00,000
60%
Group of 4 or more MSMEs
Up to Rs. 15,00,000
60%
Student Design Projects
Up to Rs. 1,50,000 (out of 2 lakh)
For bona fide student projects
Funds cover designer consultancy fees, research, prototyping, and other approved expenses related to design interventions.
Eligibility Criteria for the Design Clinic Scheme
Eligibility
As a new MSME owner, you can apply if:
The MSME should be a profitable entity in the last 3 years of its operations
The MSME must demonstrate either an export performance or potential to export
The Project Monitoring & Advisory Committee (PMAC) can stipulate/relax criteria for this purpose
Non-eligibility
You cannot avail this scheme if:
You are not registered as an MSME under the current Indian government criteria.
You have already availed significant design expertise prior to this scheme.
Your business falls outside the definition provided in the scheme guidelines.
You are unwilling to co-contribute your share of the project or workshop costs.
You do not wish to collaborate with empanelled designers or recognized institutions.
Documents Required for MSME Design Scheme
Prepare these documents to apply:
Udyam/MSME Registration certificate
Copy of PAN and GST registration
Company/enterprise profile
Proof of participation or request for design intervention
Consent letters from participant MSMEs (for group applications)
Brief write-up on the project (if applying for design project funding)
Quotation or profile of the empanelled designer
Bank details for fund disbursement
How to Apply for the Design Clinic Scheme
Step 1: Visit the official Design Clinic Scheme website or contact your local MSME Development Institute.
Step 2: Download the application form (also available as Annexure 1 in the guidelines).
Step 3: Fill in your enterprise details and describe the design assistance you seek.
Step 4: Attach the necessary documents and, if needed, a project proposal or need analysis.
Step 5: Submit your application to the coordinating agency (usually NID, Ahmedabad) or your local MSME-DI.
Step 6: Your application is reviewed, and if approved, you will be matched with a qualified designer.
Step 7: On approval, participate in the seminar/workshop or begin your design project as planned.
Step 8: After project completion, submit the required reports and expenditure statements to claim reimbursement
Benefits of the Design Clinic Scheme
Improved Product Value You get a chance to make your product or service more attractive and functional with expert design input, making it more appealing to customers.
Competitiveness With better design, your MSME stands out in the market, competing not just on price but on innovation and user experience.
Access to Expertise You gain access to top designers and industry experts who guide you through the entire design and execution process.
Financial Support The scheme substantially reduces the cost of design intervention for you, making innovation affordable for small businesses.
Improved Learning Participate in workshops and seminars that add to your knowledge, skill, and confidence in using design thinking.
Real-World Examples of the Design Clinic Scheme
Handicraft cluster adopting modern packaging design
Engineering MSME innovating product ergonomics
Textile MSME revamping branding and visual identity
Design projects often require upgradation of machinery or technology
Digital MSME Scheme
Design thinking pairs well with digitalisation for improved processes
Incubation Scheme
Innovative designs can be further supported through business incubation
Final Words
The Design Clinic Scheme is a golden opportunity for your MSME to gain from the best in design thinking, improve products, enhance competitiveness, and access government funding. Walk into the world of design with guidance and resources, it’s the boost your business needs to shine in today’s market!