Promotion of Information and Communication Technology (ICT) in MSME Sector

The scheme “Promotion of Information and Communication Technology in MSME Sector” is run by the Office of the Development Commissioner under the Ministry of Micro, Small & Medium Enterprises , Government of India. It was launched during the 11th Five Year Plan period and continues as a component of the National Manufacturing Competitiveness Programme to help MSMEs adopt digital tools and ICT applications. MSME+3DCMSME+3MSME+3 The purpose of the scheme is to motivate MSME units and clusters to adopt ICT tools in their business and production processes, improving competitiveness in national and international markets. The benefit to you as an MSME is that you can receive support for ICT adoption thereby lowering costs, improving productivity and expanding market reach.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Adoption of cloud computing / ICT infrastructure: The scheme emphasises that MSMEs should shift from large upfront investment in hardware/software to using cloud-based ICT services (pay-as-you-use model) so that CAPEX converts into OPEX and MSMEs avoid heavy investment burden.
Support for cluster-wise ICT interventions and “need analysis”: The scheme supports identifying potential MSME clusters, mapping their digital readiness, and then implementing targeted ICT interventions in that cluster (for example network infrastructure, portal, process standardisation).
Development of e-platforms, e-catalogues, e-commerce linkages: Under the scheme, MSME clusters may get support to develop web-portals, e-catalogues, digital marketing platforms, e-commerce interfaces to access domestic and international markets more efficiently.
Training and capacity-building of MSME staff in ICT usage: The scheme includes components of sensitising MSME management and staff to ICT tools, conducting workshops, training in software/app usage, and ensuring human resource skills for digital transformation.
Promotion of standardisation of business processes through ICT (ERP, MIS, e-procurement): The scheme encourages MSMEs to adopt business software solutions (such as ERP systems, MIS dashboards, e-procurement systems) to streamline operations, reduce costs, improve quality and decision-making processes.
Awareness building and benchmarking of digital readiness among MSME clusters: The scheme also envisages creating awareness among MSMEs about benefits of ICT, conducting digital readiness surveys, creating knowledge-networks among clusters, and documenting success stories to propagate adoption.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Cloud/Software infrastructure support	Subsidy/support for adoption of ICT tools/Cloud	Example: Your MSME may adopt a cloud-based ERP and pay subscription; under the scheme you get financial support for the software cost (or part of it) and thereby reduce your initial cost.
Cluster ICT intervention funding	Grants to clusters for ICT readiness and platforms	Example: A cluster of 100 MSME units is selected; they develop an e-catalogue and portal funding support is given to the cluster to build the portal and train members.
Training & capacity building assistance	Support for workshops, software training and awareness	Example: Your MSME attends a scheme-supported workshop on e-marketing and cloud usage; its training cost is subsidised, enabling up-skilling with minimal expense.

Eligibility Criteria

Who Can Apply:

Registered micro, small and medium enterprises under MSMED Act.
MSME clusters designated by the Ministry of MSME for ICT intervention.
Special Purpose Vehicles representing cluster-level MSME associations.
Manufacturing and service MSMEs that require digital transformation.
Units willing to adopt ERP, MIS or ICT-based process automation.

Who Cannot Apply:

Large enterprises or units not classified as MSMEs.
Individual enterprises not part of an identified cluster when cluster intervention was mandated.
Units not compliant with statutory registrations or financial documentation.
MSMEs unwilling to participate in shared ICT infrastructure or common solutions.
Entities seeking ICT solutions unrelated to productivity, automation or cluster development.

Documents Required

MSME registration details
SPV registration documents (if applicable)
Diagnostic study report and ICT roadmap
Financial statements and unit profile
Proposed ICT adoption plan
KYC documents of enterprise and promoter
Bank account details for subsidy release
Vendor quotations for ICT solutions

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.

Option 2: Official Application Method (Historical Process)

MSME clusters underwent diagnostic studies by approved agencies.
SPV formation was required for implementation of ICT solutions.
Detailed project reports and ICT roadmaps were prepared.
Proposals were submitted to the Ministry of MSME through MSME-DI offices.
After approval, ICT solution providers were engaged and implementation began.
Subsidy claims were processed based on completed milestones.

Power Combos with The Scheme