Digital MSME Scheme

As a new MSME owner, you will find digital technology vital for your business survival and growth in today’s fast-changing market. The Digital MSME Scheme encourages you to adopt digital tools such as cloud computing, accounting software, and digital marketing. This scheme also supports you with financial assistance and training to use these advanced technologies. By going digital, your MSME can reduce costs, improve productivity, and reach wider markets nationally and internationally.

What is the Digital MSME Scheme?

Launched initially in 2017 and updated for wider ICT adoption, the Digital MSME Scheme is a government initiative aimed at promoting digitalization of MSME. The scheme is designed to provide financial assistance and support to MSMEs in order to help them embrace digital technologies and transform their businesses. The scheme includes the use of digital tools such as websites, mobile applications, digital marketing and e-commerce platforms. The scheme aims to support by providing financial assistance, training programs and other resources. The goal of the scheme is to help MSMEs adopt digital technologies, increase their online presence and improve their competitiveness in the marketplace.

Objectives of the Digital MSME Scheme

• To improve your access to markets and online content, so you stay updated.
• To reduce costs and improve efficiency by digitising your processes.
• To standardise business operations and help you serve customers faster.
• To promote digital literacy and foster e-marketing for your MSME.
• To make MSMEs digitally empowered by adopting ICT tools in business processes
• To improve their competitiveness in national and international market
• To benefit MSME in terms of standardization, delivery time, controlling cost & time

Key Features of the Digital MSME Scheme

• The scheme provides for awareness programme, workshops & Digital literacy training
• The scheme provides development of e-platform such as India Enterprise portal and E-marketing. For displaying details of digital service providers, software costs, and feature comparisons
• The scheme provides for development of software application for MSME for Enterprise Resource Planning (ERP), Accounting, Manufacturing Design & Regulatory compliances
• The scheme provides for setting up of Enterprise Development Centres (EDCs) to assist MSME with advice, awareness, and information about digital business management.
• The scheme provides publicity, branding and mobilization by Implementing Agencies (IA)

Financial Assistance Offered Under the Scheme

• Funds for awareness, workshops, and IT support are routed through implementing agencies and institutions, not directly to MSMEs.
• As a new MSME owner, you primarily benefit through subsidised/free training, access to digital platforms, and sector-focused software, plus hands-on support at local Enterprise Development Centres.

Eligibility Criteria for Digital MSME Scheme India

Eligibility

• Your business must be a registered MSME under the MSME Act, 2006.
• You should possess Udyam Registration or equivalent as notified by the Ministry.
• You are willing to participate in a digital adoption, awareness, or training activity.
• You can submit all proofs and documents as required by the scheme.

Non-eligibility

• If your business does not comply with the notification and executive orders under the MSME Act.
• If you have unresolved compliance or registration issues.
• If you are not willing to adopt digital tools or do not participate in awareness/training activities.

Documents Required for Digital MSME Scheme

• MSME Registration Certificate (Udyam/Udyog Aadhaar)
• PAN and GSTIN of the business
• Bank account details for Direct Benefit Transfer
• Invoices and receipts for digital services availed
• Application form for the scheme
• Proof of payment to the digital service provider

How to Apply for the Digital MSME Scheme

Step 1: Visit the official scheme portal or the MSME Development Institute near you.

Step 2: Submit your MSME registration documents along with the application form for financial assistance.

Step 3: Select the digital tools or services you want to adopt.

Step 4: Make full payment to the approved digital service provider.

Step 5: Submit payment proof and required documents to the authorities for subsidy disbursement.

Step 6: Receive the subsidy directly in your bank account through the Direct Benefit Transfer mechanism.

Benefits of the Digital MSME Scheme

• Access to Digital Technologies
  You gain access to modern digital tools such as cloud computing, digital marketing, accounting software, and ERP systems, helping you streamline your business operations efficiently.
• Improved Efficiency and Productivity
  By adopting digital technology, your business operations become more automated and faster, reducing manual errors and administrative burdens, thereby saving time and costs.
• Enhanced Market Reach
  The scheme enables you to tap into wider markets, including e-commerce platforms, improving your customer base nationally and internationally.
• Cost Savings Through Automation
  Digital tools reduce operational costs by automating tasks such as inventory management and compliance with government regulations.
• Increased Competitiveness
  Digital adoption under this scheme equips you to compete better with larger enterprises by improving business processes and customer engagement.
• Financial Support and Training
  You receive financial assistance of up to Rs. 1 lakh and training programs to boost your digital skills, making it easier to implement and sustain digital transformation.
• Simplified Compliance and Transparency
  Using digital tools makes it easier for you to maintain records, file taxes, and comply with regulatory requirements, improving transparency and governance.

Real-World Examples of the Digital MSME Scheme

• Adoption of cloud-based ERP by textile manufacturers
• Use of digital accounting and invoicing in small food processing units
• Implementation of digital marketing strategies by handloom clusters
• Use of manufacturing design software in engineering MSMEs

Related Government Support Plans with Digital MSME Scheme

Final Words

By adopting the Digital MSME Scheme, you gain access to government financial support and skills development to digitalise your business operations. This move not only boosts your productivity but also helps you compete effectively in today’s digital economy. Start your digital journey now by applying for the scheme and taking advantage of the government’s push towards a technologically empowered MSME sector.