MSME Innovation Scheme: Design
Overview
The Design component of the MSME Innovative Scheme is aimed at enhancing the competitiveness and manufacturing excellence of Micro, Small and Medium Enterprises (MSMEs) through strategic design intervention. The scheme facilitates collaboration between MSMEs and professional design firms or academic institutions to develop market-ready products, improve usability, and strengthen brand value.
Objective
To promote design-driven innovation in the MSME sector by supporting design development, redesigning of existing products, and building awareness on the importance of design in business competitiveness.
Key Features
Support for Design Projects
Enables MSMEs to partner with qualified design experts or institutions to undertake new product development or upgrade existing products.Student Design Projects
Encourages design students to work on real-life industry challenges under the mentorship of their academic institutions.Design Awareness Programmes
Promotes understanding of design principles, methodologies, and applications among MSMEs through workshops, seminars, and training sessions.
Types of Assistance
1. Design Projects (Main Component)
| Category | Details |
|---|---|
|
Financial Assistance |
Funding for MSMEs: Up to ₹40 lakh per project |
|
Government Share |
– 75% for micro enterprises
– 60% for small/medium enterprises |
|
Eligible Expenses |
Consultancy fees, travel, prototyping, testing, etc. |
|
Design Stages |
Strategy, Detailed Design, Final Prototype |
|
Disbursement Mechanism |
– 40% at Strategy Stage
– 30% at Detailed Design Stage
– 30% at Final Prototype Stage |
2. Student Design Projects
| Category | Details |
|---|---|
|
Eligible participants |
Students of recognized design institutes |
|
Max support per project |
Up to ₹2.5 lakh |
|
Expenses covered |
Model/prototype development, field visits, design costs, etc. |
3. Design Awareness Programme
| Programme Type | Support Available |
|---|---|
|
Awareness Workshops |
Financial and logistical support for organizing design awareness events |
|
Design Clinics |
Mentorship and training by design experts |
Eligibility Criteria
For MSMEs:
Registered with Udyam Portal under the definition of MSMEs.
Willing to co-fund the project as per eligibility category (micro/small/medium).
For Design Consultants/Agencies:
Must be a registered design firm, consultancy, or academic institution with relevant experience.
Approved and listed by the Ministry of MSME or its implementing agency.
For Students:
Must be enrolled in a recognized design or technical institution.
Project must be approved by the institution and relevant host/mentor.
Application Process
For MSMEs:
Identify a design consultant from the empanelled list or propose a qualified expert.
Submit a joint proposal outlining project scope, objectives, and financials via the portal.
For Students and Institutions:
Apply under the student design project component through the academic institution.
Institutions must be recognized by a competent authority.
Design Awareness Programmes:
Industry associations, chambers, or other entities may apply to organize workshops and seminars.
👉 All proposals must be submitted through the official portal:
https://innovative.msme.gov.in
Monitoring & Evaluation
Proposals are evaluated by a designated Design Evaluation Committee (DEC) constituted by the Ministry.
Progress and milestones are monitored, and funds are released in tranches as per the approved project plan.
Expected Outcomes
Improved product aesthetics, functionality, and marketability.
Better brand identity and customer engagement for MSMEs.
Strengthened design ecosystem and design culture among Indian enterprises.