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Digital MSME Scheme

Digital MSME Scheme

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.


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)


1st year

2nd year


All MSEs in the category of OTHER 60% 60% 1.00 lakh


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.


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

The MSEs who needs funding assistance has to apply through 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.