Design Scheme under MSME Innovative Scheme

The Design Scheme under the MSME Innovative Scheme assists businesses in accessing professional design services to innovate and improve product design, develop prototypes, and enhance competitiveness. It provides financial support for employing expert designers and consultants, thereby fostering innovation and value addition in MSME products.

Highlights

• Supports MSMEs to avail services from Design experts & Consultants 
• Financial assistance for concept development, detailed design & prototype creation.
• Encourages adoption of innovative designs to be competitive in the market.
• Phased grant disbursement aligned with project milestones.
• Helps businesses protect intellectual property arising from design interventions.

What is the Design Scheme?

• It is a part of MSME Innovative Scheme focusing on product design & awareness 
• It enables MSMEs to engage with qualified industrial designers or consultants 
• It covers costs of design consultancy, prototyping & IPR management
• It emphasises on importance of design awareness among  MSMEs

Objectives

• Create common platform for MSME manufacturers and Design fraternity
• Solve real time design problems & provide cost effective solutions
• Develop newly designed products & new design strategies through consultancy
• Generate awareness about value & power of design for MSMEs

Benefits of the MSME Innovative Scheme

• Financial Support
  Up to 75% grant for Micro and 60% for Small & Medium enterprises, max ₹40 lakh.
• Expert Guidance
  Access to leading design professionals with relevant experience.
• Innovation Boost
  Facilitates the development of new products and the improvement of existing ones.
• Prototype Development
  Supports the cost of creating working prototypes for market readiness.
• IPR Facilitation
  Helps protect design-related intellectual property, boosting commercial value.

Financial Assistance Under the Scheme

For MSME Design Project :

• GOI will provide financial support up to 75% of the cost for Micro Enterprises  (maximum limit of Rs 40 lakh per project). Balance amount to be paid by respective MSME
• GOI will provide financial support up to 60% of the cost for Small & Medium  Enterprises  (maximum limit of Rs 40 lakh per project). Balance amount to be paid by respective MSME

For Student Design Project :

• Available for all student of any institution accredited by AICTE/UGC (Educational Bodies)
• Either the MSME can approach student or Student can approach MSME for design project 
• GOI will provide financial support up to 75% of the cost for Micro Enterprises  (maximum limit of Rs 2.5 lakh per project). Balance amount to be paid by respective MSME
• The financial assistance includes student designer’s stipend, documentation & expenses related to product design & development.

Eligibility for MSME Innovative Scheme

You are eligible if:

• Registered MSME unit with valid Udyam registration.
• Must engage qualified industrial designers or design firms relevant to the project.

You are not eligible if:

• Received concurrent funding from other government schemes for the same project.

Documents Required for MSME Innovative Scheme

• Udyam/ MSME registration certificate.
• Project proposal detailing scope, design goals, budget, and timeline.
• Quotation/contract with the design consultant.
• Intellectual property management plan.

Application Process for MSME Innovative Scheme

You can apply:

• Online by visiting the MSME Innovative website portal.

Examples of Where the MSME Innovative Scheme Can Be Used 

• A handloom MSME in Assam partners with students to redesign traditional silk sarees with modern motifs, boosting sales in urban markets.
• A bamboo handicraft MSME in Tripura uses the design scheme to create innovative furniture designs, helping them tap into premium home décor stores.
• A footwear MSME in Agra collaborates with a design institute to develop ergonomic, stylish shoes for working professionals, improving both comfort and demand.