India is preparing a major funding boost for its MSME Champions Scheme, with the Government of India considering a ninefold jump in outlay to around ₹10,000 crore over the next five years to push cleaner production, exports and global competitiveness among small businesses.
Key Highlights
MSME Champions Scheme Boost At A Glance
- Centre may raise MSME Champions outlay up to ₹10,000 crore over the next five years.
- Scheme focuses on cleaner manufacturing, technology upgrades and stronger export readiness for MSMEs.
- Proposal is currently with the Expenditure Finance Committee, indicating advanced review within government.
What is the MSME Champions Scheme?
The MSME Champions Scheme is an umbrella programme of the Ministry of MSME that brings together several initiatives aimed at improving quality, technology, sustainability and market access for micro, small and medium enterprises.
It covers components such as ZED (Zero Defect Zero Effect) certification, incubation support and capacity building so that small firms can upgrade processes and compete in both domestic and global markets.
Big funding jump on the table
The Centre is considering increasing the MSME Champions outlay to around ₹8,000–10,000 crore for the next five years, compared with about ₹1,125 crore earmarked for FY22–FY26, implying roughly a ninefold jump.
The proposal has reached the Expenditure Finance Committee (EFC), which examines major schemes before they move to Cabinet, indicating that the plan is at an advanced stage of internal approval.
Why the government wants to scale it up
Officials see MSMEs as central to India’s export growth, job creation and the push for cleaner, more efficient manufacturing, so a larger scheme outlay is meant to support firms in adopting better technology and green practices.
The government has also used recent budgets to strengthen credit guarantees, cluster development and entrepreneurship schemes for MSMEs, signalling a broader strategy to make small businesses more resilient and globally competitive.
What MSMEs are already getting under Champions
Under the MSME-Sustainable (ZED) Certification component, launched in April 2022, over 2.37 lakh MSMEs have been supported for adopting quality and sustainability standards, showing strong uptake of the scheme’s core offerings.
For FY2024–25, the budget documents show a dedicated allocation under MSME Champions, alongside other key MSME programmes like cluster development and credit support, which together aim to improve productivity and formalisation in the sector.
How this fits into the larger MSME push
Recent policy moves include higher credit guarantee cover for micro and small enterprises and expanded support for start-ups, with a separate ₹10,000 crore fund of funds to help new ventures scale.
Along with procurement targets for MSEs and digital platforms like TReDS and GeM, a stronger Champions Scheme would add another pillar to the policy framework backing India’s small-business ecosystem.
In short: The proposed scale-up of the MSME Champions Scheme marks an important moment for India’s small business ecosystem, signalling that policy support is shifting firmly towards technology, sustainability and global competitiveness rather than just survival. If the ninefold hike in outlay goes through, more MSMEs will be able to tap ZED certification, digital tools and incubation support—helping them cut waste, improve quality and reach new markets at home and abroad. For entrepreneurs on the ground, the real test will be how quickly approvals move, how simple the processes remain and how effectively the benefits reach clusters across the country, but the direction of travel is clearly towards building a deeper bench of true “champion” enterprises.