MSME Champions Scheme for Micro, Small & Medium Enterprises

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The MSME Champions Scheme aims to boost the growth of Micro, Small & Medium Enterprises (MSMEs) by making them more competitive, innovative, and sustainable. Running from 2021 to 2026, it brings together various support schemes to improve your technology, quality, and business processes for MSMEs across India.

In this Scheme:

The government has introduced the MSME Champions Scheme to support and uplift India’s MSMEs. This forward-thinking initiative gives you access to modern technology, tools, and processes, helping you become more competitive and succeed in the global market.

If you're an MSME owner looking to expand, innovate, and stay ahead of the competition, this scheme is your gateway to growth and success.

What is the MSME Champions Scheme?

The MSME Champions Scheme is an integrated support program designed to bring together six earlier schemes under the Technology Upgradation Scheme (TUS) into three key areas:

  • MSME-Sustainable (ZED)
  • MSME-Competitive (Lean Manufacturing)
  • MSME-Innovative (Incubation, IPR, Design)

Additionally, a Digital MSME component is planned, which will be interlinked with the other three to make your business more digital-ready.

Objectives of the MSME Champions Scheme

The scheme’s primary objectives are:

  • Modernize your processes and reduce wastage, making your operations more efficient.
  • Encourage innovation and help you adopt advanced technology to stay competitive.
  • Promote quality improvement and sustainable practices in your business.
  • Increase your competitiveness in both national and global markets, giving your business a stronger presence.
  • Provide you with financial and technical support to help upgrade your processes and products.

Key Features of the MSME Champions Scheme

  • The scheme merges multiple programs into one streamlined experience, making it easier for you to access support.
  • It focuses on sustainability (ZED), innovation (incubation, IPR, design), and competitiveness (lean manufacturing) to cover all aspects of your business growth.
  • You’ll receive subsidies and support for certification, consultancy, and technology adoption to improve your operations.
  • There are additional subsidies for women, SC/ST, and MSMEs located in special regions, making the scheme more inclusive.
  • The scheme plans for digital empowerment for MSMEs, helping you become more tech-savvy and ready for the digital world.

MSME Champions Scheme Components 

Component

Sector

Subsidy/Loan Amount

Additional Benefits

MSME-Sustainable (ZED Certification)

All MSMEs (Manufacturing & Services)

Certification Fees:

- Bronze: ₹10,000

- Silver: ₹40,000

- Gold: ₹90,000

 

Subsidy on Certification:

- Micro Enterprises: 80%

- Small Enterprises: 60%

- Medium Enterprises: 50%

 

Joining Reward: ₹10,000 (Bronze becomes free if availed)

 

Testing/Quality/Product Certification: 

Up to 75% of cost (max ₹50,000)

 

Handholding/Consultancy: 

Up to ₹2 lakh

 

Technology Upgradation for Zero Effect: 

Up to ₹3 lakh

  • Additional 10% subsidy for Women/SC/ST/NER/Himalayan/LWE/Island/Aspirational District MSMEs
  • Additional 5% for MSMEs under SFURTI or MSE-CDP
  • Graded incentives for higher ZED levels
  • MSME KAWACH (COVID-19 preparedness self-certification)

MSME-Competitive (Lean Manufacturing)

All MSMEs (Primarily Manufacturing)

Cost of Implementation:

  • Basic: Free
  • Intermediate: ₹1,20,000
  • Advanced: ₹2,40,000

 

MSME Contribution: 

10% with taxes

 

Subsidy:

 90% of the total cost of implementation

 

Subsidy Levels:

  • Basic: Free of Cost.
  • Intermediate Level: You get a 90% subsidy on the consultant fees for implementation.
  • Advanced Level: You also get a 90% subsidy on the consultant fees for implementation.
  • Group-based implementation
  • Focus on process improvement, waste reduction, and competitiveness

MSME-Innovative (Design, Incubation, IPR)

All MSMEs (Manufacturing & Services); Individuals & Students (for Incubation)

Design:

  • Design Project: 

GoI will contribute: 

  • 75% of the project cost for Micro enterprises

  • 60% of the project cost for Small & Medium enterprises (up to ₹40 lakh and the remaining cost must be paid by the MSME to the IA)

     

  • Student Project: Up to 75% (max ₹2.5 lakh)

     

Incubation:

  • Up to ₹15 lakh per idea (to Host Institute)
  • For Plant & Machinery: Up to ₹1 crore (for Host Institute)

 

Seed Capital: 

Up to ₹1 crore as equity is provided.

 

Equity Percentage:

A maximum of 80% of funding will be provided by the GoI and 20% will be brought by MSME.

 

IPR:

  • Foreign Patent: Up to ₹5 lakh
  • Domestic Patent: Up to ₹1 lakh
  • GI Registration: Up to ₹2 lakh
  • Design Registration: Up to ₹0.15 lakh
  • Trademark: Up to ₹0.10 lakh
  • Support for idea nurturing, R&D, and commercialization
  • Reimbursement for patent, trademark, GI, and design registration
  • Encourages collaboration with academic and R&D institutions
  • Digital MSME component to be interlinked for digital empowerment

Eligibility Criteria for the MSME Champions Scheme

Eligibility

  • If your MSME is registered on the UDYAM portal of the Ministry of MSME, you’re eligible.
  • MSMEs from both the manufacturing and service sectors can apply.
  • If you’re looking for support with technology upgradation, quality improvement, or innovation, you qualify for this scheme.

Non-Eligibility

  • If your enterprise is not registered on the UDYAM portal, you’re not eligible.
  • If your MSME doesn’t follow the scheme guidelines, you won’t be able to apply.
  • If you’re already getting similar benefits from other government schemes for the same purpose, you won’t be eligible for this one.

Documents Required for MSME Champions Scheme

  • UDYAM Registration Certificate
  • PAN Card and Aadhaar of proprietor/partners/directors
  • GST registration certificate
  • Income Tax Returns of last 3 years
  • Proof of business address
  • Bank account details
  • Detailed project report or proposal (for innovation/design support)
  • Relevant quotations/invoices for technology or certification support
  • Caste certificate (if applicable for special category benefits)
  • Other documents as specified in the detailed scheme guideline

How to Apply for the MSME Champions Scheme?

Step 1: Make sure your MSME is registered on the UDYAM portal.

Step 2: Visit the official MSME Champions Scheme portal or respective component portals.

Step 3: Fill in the application form with all the required details.

Step 4: Submit the required documents as specified in the application.

Step 5: Your application will be reviewed, and eligible MSMEs will be selected for support.

Step 6: Once selected, you can avail support as per the approved project or intervention.

Benefits of the MSME Champions Scheme

  • Financial Subsidy

You’ll receive direct financial support for technology upgrades, certifications, and consultancy to help your business grow.

  • Quality Improvement

Get assistance for ZED certification and improve your quality standards, helping you produce better products.

  • Process Optimization

With lean manufacturing support, you’ll reduce wastage, increase efficiency, and streamline your processes.

  • Innovation Support

The scheme provides funding and guidance for developing new products, improving design, and securing intellectual property rights (IPR).

  • Special Incentives

If your MSME is in a disadvantaged category or region, you can receive extra benefits to level up.

  • Market Access

By improving your competitiveness, this scheme helps you access national and international markets, making it easier to grow your business.

Real-World Examples of the MSME Champions Scheme

  • ZED Certified MSMEs Achieving Export Growth
  • Lean Manufacturing Clusters Reducing Costs
  • Startups Securing Patents with IPR Support
  • Women-Led MSMEs Benefiting from Additional Subsidies

Scheme

How It Links with MSME Champions Scheme

Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

If you are part of a cluster, MSE-CDP can help you with infrastructure and common facilities, complementing the modernization and competitiveness focus of MSME Champions.

Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)

You can get collateral-free loans using CGTMSE, which makes it easier to access finance for technology upgradation and innovation under MSME Champions.

Procurement and Marketing Support (PMS) Scheme

This scheme helps you participate in trade fairs and market your products, working alongside MSME Champions to boost your business visibility and sales.

Final Word

The MSME Champions Scheme is a transformative initiative. It brings together the best in technology, innovation, and quality improvement to help empower Indian MSMEs. With streamlined support and targeted financial and technical assistance, this scheme is designed to make your business globally competitive and sustainable in the long run. Now, it’s your chance to take your enterprise to the next level and succeed in the future market!

Frequently Asked Questions

1. Are startups eligible for the MSME Champions Scheme?

Yes, startups registered as MSMEs can apply for innovation and incubation support.

2. Is there any special benefit for women entrepreneurs under the MSME Champions Scheme?

Yes, women-owned MSMEs get an additional 10% subsidy.

3. What if I am already availing another government subsidy?

If you're already receiving a subsidy for the same purpose under another scheme, you can't claim the benefit again under the MSME Champions Scheme. For example, if you've already received financial support for purchasing equipment or for training under a different program such as CGTMSE, you won’t be eligible to claim it again through this scheme.

4. Where can I get more information or help about the MSME Champions Scheme?

Visit the official MSME Champions Scheme portal or contact your nearest MSME Development Institute.

MSME Champions Scheme for Micro, Small & Medium Enterprises