Digital Msme Scheme

Digital Msme Scheme is launched for Promoting Information and Communication Technology (ICT) in

MSME Sector by adopting ICT tools and applications in their production and business process. Digital Msme Scheme is also aimed at creating awareness, supporting developments and e-platforms, creating literacy, training and promoting digital marketing in MSME sectors. Information and Communication Technology (ICT) in India, which has caused massive growth in socio-economic development by in the Indian economy helped the MSME sector to re-invent and digitalize for better productivity and profits.

Objective of Digital MSME

To encourage the MSME sector towards Cloud Computing for ICT adoption in their business process and production.
To improve the quality of commodities, business and services and increase the number of MSMEs
To increase productivity, cost-effectiveness and revenue of the enterprise through the Cloud platform.
To decrease cost in infrastructure and software programs and delivery time cycle.
To help the MSME sector connect with Technology centres for better support and updates from the government.

The office of MSME, Government of India (GOI), has defined a methodology for this scheme. GOI has already identified various Implementing Agencies (IA) and the Tele Communications India Limited (TCIL, GOI) which will organise and implement this scheme to the MSMEs. GOI has allocated funds to set up various Implementing Agencies (IA) across the county. The expenses related to IT infrastructure would cover up to Rs.10 lakh per IA.

Implementation of the Scheme

Awareness Programme

The objective of the awareness programme is to create awareness to MSMEs on the benefits, details of the scheme, how to avail and procedure for the scheme, benefits and details of the scheme. The awareness programme will also asses the ICT need for MSME and advise the MSME to find suitable ICT services.

Workshop

The objective of the workshop will facilitate the interactions among the MSMEs, implementation authorities, industry associations. The companies for appropriate and suitable ICT services. GOI funds the workshops through MSME-Development Institute and Implementing Agencies. About 50 MSMEs are covered in each workshop.

Cloud Computing

To encourage

cloud computing for ICT applications by MSMEs, the subsidy will be provided for 2 years. A maximum subsidy of 1 lakh per MSME unit will be disbursed over a period of 2 years. The rate of subsidy is as follows:

	Rate of Subsidy	Amount of subsidy per MSE (Rs. In Lakhs)
Eligibility	1st year	2nd year
1	All MSEs in the category of OTHER	60%	60%	1.00 lakh
2	All MSEs in the category of NER, SC/ST, Women, Divyang	60% + 10% of rate of OTHER category	60% + 10% of rate of OTHER category	1.00 lakh

Subsidy for the 3rd year is considered and will be notified in the later stage.

Eligibility

Udyog Aadhar
MSEs should be able to pay the full amount to the service providers
MSE will be selected by First come first serve basis
Other factors:
- Financial soundness
- Product range
- Export
- Scope of Expansion
- Turn over

The MSEs who needs funding assistance has to apply through /ICT/MSME_Status.aspx. MSEs has to pay the full amount to the service providers. The subsidy will be disbursed through the Direct Benefit Transfer (DBT) route. The office of MSME, GOI will transfer funds to TCIL who in turn will transfer to the account of MSMEs. The implementing agency will provide the details of MSMEs with user charges, subsidy details to the Office of MSME, GOI on a monthly basis. Initially, the following services are available for MSMEs through various service providers:

ERP
Accounting
Manufacturing Design
Regulatory compliance including GST

The number of services will be updated at regular intervals.

Back to Learn

Frequently Asked Questions

Common questions about Digital MSME Scheme: ICT Promotion for MSMEs.

The Digital MSME Scheme is launched by the Government of India to promote the adoption of Information and Communication Technology (ICT) tools and applications in the Micro, Small and Medium Enterprises (MSME) sector. It aims to create awareness, support developments, e-platforms, digital literacy, training, and promote digital marketing in the MSME sectors.

The primary objectives of the Digital MSME Scheme are to encourage the MSME sector towards cloud computing for ICT adoption, improve the quality of commodities and services, increase productivity and cost-effectiveness, decrease infrastructure and software costs, and help MSMEs connect with technology centers for better support and government updates.

The scheme is being implemented through various awareness programs, workshops, and by providing subsidies for cloud computing services to eligible MSMEs. The Telecommunications Consultants India Limited (TCIL), under the Ministry of Communications, is the implementing agency responsible for organizing and executing the scheme across the country.

To be eligible for the cloud computing subsidy, MSMEs must have a valid Udyog Aadhaar, be financially sound, have a diverse product range, export potential, scope for expansion, and a good turnover. Additionally, they must be able to pay the full amount to the service providers initially.

The subsidy for cloud computing services is provided for a maximum of two years. MSMEs in the 'Other' category are eligible for a subsidy of 60% of the amount, up to Rs. 1 lakh per year. For MSMEs in the NER, SC/ST, Women, and Divyang categories, the subsidy is 60% plus an additional 10% of the 'Other' category rate, up to Rs. 1 lakh per year.

Initially, the services available for MSMEs through various service providers include Enterprise Resource Planning (ERP), accounting, manufacturing design, regulatory compliance (including GST), and other related services. The number of services will be updated regularly.

The subsidy is disbursed through the Direct Benefit Transfer (DBT) route. The Office of MSME, Government of India, transfers funds to TCIL, which then transfers the subsidy amount to the accounts of eligible MSMEs.

MSMEs can apply for the Digital MSME Scheme through the dedicated online portal (ICT/MSME_Status.aspx). They need to pay the full amount to the service providers initially, and the subsidy will be credited to their accounts later.

The Government of India has allocated funds to set up various Implementing Agencies (IAs) across the country. These IAs are responsible for conducting awareness programs, workshops, and assessing the ICT needs of MSMEs in their respective regions.

The Digital MSME Scheme aims to help the MSME sector reinvent and digitalize their business processes and production, leading to better productivity, cost-effectiveness, and increased profits. It also promotes the adoption of advanced technologies, improves quality, and connects MSMEs with technology centers for better support and government updates.