NITI Aayog Releases report on ‘Achieving Efficiencies in MSME Sector through Convergence of Schemes’

In January 2026, the National Institution for Transforming India (NITI) Aayog released a comprehensive report titled, “Achieving Efficiencies in Micro Small Medium Enterprises (MSME) Sector through Convergence of Schemes ”, a detailed framework to strengthen the effectiveness of government interventions in the sector.

• The report was launched in New Delhi, Delhi by Dr. Arvind Virmani, Member of NITI Aayog, and B. V. R. Subrahmanyam, Chief Executive Officer (CEO) of NITI Aayog.

Highlights of the Report:

Objectives: The report aims to achieve the following objectives:

• To evaluate the various Government of India (GoI) schemes and programmes of the MSME sector.
• To examine the present level of convergence of MSME programmes.
• To identify the best practices of convergence in center, states and internationally.
• To make recommendations on the convergence opportunities and corrective steps.

Need for Convergence: The Ministry of MSME(MoMSME) currently oversees 18 schemes with overlapping objectives and fragmented implementation across ministries often lead to duplication, inefficiencies, and limited outreach.

• The report underscores that effective convergence and rationalisation of schemes can simplify access for beneficiaries, reduce duplication and better conversion of resources into outcomes.

Framework for Convergence: The report recommends a dual approach to convergence.

• Information convergence focuses on integrating government-generated data at the central and state levels to improve coordination, enable informed decision-making, and strengthen governance outcomes.
• Process convergence aims at merging similar schemes, combining common components, and fostering collaboration across ministries.

Recommendations:

Centralized Portal for MSMEs: The report proposes an Artificial intelligence (AI) powered centralized digital platform integrating MSME schemes, compliance, finance, and market intelligence.

• The portal would feature information, process, compliance, and market research modules, supported by AI chatbots, dashboards, and mobile access for real-time support to MSMEs.

Convergence of Cluster Development Schemes: Integration of the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP).

• It proposes a dedicated sub-scheme, unified governance under MSE-CDP, and earmarked funding to preserve traditional industries while improving scale and efficiency.

Convergence of skill development programmes: It recommends reorganising skill initiatives into a three-tier framework covering entrepreneurship, MSME technical skills, and training for rural and women artisans.

Marketing Assistance Wing:  To streamline MSME marketing support, the report proposes,

• Domestic Wing: This would facilitate MSME participation in national exhibitions, trade fairs, and buyer-seller meets.
• International Wing: This would support global market access through overseas trade fairs, B2B (Business to Business) events, and buyer-seller meets.

MSME Innovative & ASPIRE: The report recommends integrating A Scheme For Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE) into MSME Innovative as a special category for agro-rural enterprises.

About National Institution for Transforming India (NITI) Aayog:
NITI Aayog was established on January 01, 2015 replacing the Planning Commission of India. It serves as the apex public policy think tank of the Government of India (GoI).
Chairman – Prime Minister (PM) Narendra Modi
Headquarters – New Delhi, Delhi
Establishment – 2015