Sumvaad

The Indian government, along with state authorities, continues to empower MSMEs (Micro, Small, and Medium Enterprises) with robust schemes for funding, skill-building, tech upgrades, and market expansion.

If you’re running a small business, agri-business, or MSME, the Indian government offers several schemes, subsidies, and loan programs to help you get started, expand, or recover. But many of these aren’t widely known — or understood clearly.

So we’ve created a comprehensive, easy-to-read guide that lists the most relevant Central + State-level schemes in 2025 — especially useful for business owners in manufacturing, food processing, packaging, agriculture, services, and exports.

Table of Contents

1. Top Central Government MSME Schemes

2. Popular State-Level Schemes

3. New Schemes Worth Tracking

Central Government Schemes (2025)

1. Prime Minister’s Employment Generation Programme (PMEGP)

One of the most popular schemes for first-time entrepreneurs.

• What it offers: Subsidy of 15%–35% on project cost for setting up new manufacturing or service units

• Who can apply: Anyone above 18 years with basic education (8th pass and above), no income limit

• Loan amount: Up to ₹50 lakh for manufacturing; ₹20 lakh for services

• Repayment: 3–7 years after a moratorium of 6–18 months

• Where to apply: PMEGP Portal

Best for: Small manufacturers, rural entrepreneurs, service providers

2. Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE)

Helps you get collateral-free loans from banks.

• What it offers: 75%–85% guarantee cover on loans up to ₹5 crore

• Who can apply: New or existing MSMEs, including agri-based enterprises

• Loan amount: ₹10 lakh to ₹5 crore

• Repayment: Based on bank’s lending terms (usually 3–7 years)

• Where to Apply?: CGTMSE Portal

Best for: Entrepreneurs without collateral, first-time borrowers

3. Agriculture Infrastructure Fund (AIF)

Perfect for agri-entrepreneurs, FPOs, and food processors.

• What it offers: 3% interest subsidy + credit guarantee support for agri infra projects

• Who can apply: Farmers, agri-startups, SHGs, PACS, entrepreneurs

• Loan amount: Up to ₹2 crore per project; multiple projects allowed

• Repayment: Up to 7 years with moratorium

• Where to Apply?: AIF Portal

Best for: Cold storage, food processing units, warehouses

4. PM Formalisation of Micro Food Processing Enterprises (PM FME)

A targeted scheme for small food businesses.

• What it offers: 35% capital subsidy (up to ₹10 lakh)

• Who can apply: Individual food processors, FPOs, SHGs, cooperatives

• Loan amount: Linked to the cost of machinery/infrastructure

• Repayment: Per bank’s terms

• Where to Apply?: PMFME Portal

Best for: Pickle units, spice processors, small food brands

5. Stand-Up India Scheme

Supports SC/ST and women entrepreneurs.

• What it offers: Composite loan (₹10 lakh – ₹1 crore) for greenfield projects

• Who can apply: At least one SC/ST or woman per bank branch

• Loan amount: ₹10 lakh to ₹1 crore

• Repayment: Up to 7 years

• Where to apply?: Stand-Up India Portal

Best for: New-age women-led or socially inclusive startups

6. MSME Sustainable ZED Certification Scheme

For businesses focused on sustainability, lean manufacturing, and quality.

• What it offers: Subsidies on certification, tech upgrades, and capacity building

• Who can apply: Registered MSMEs

• Loan/Subsidy: ₹10,000–₹3 lakh based on ZED rating

• Where to apply?: ZED Portal

Best for: Eco-conscious or export-focused units

7. Mudra Loans under PMMY

For nano and micro businesses needing small ticket loans.

• What it offers: Collateral-free loans under Shishu (up to ₹50k), Kishore (₹50k–5L), Tarun (₹5L–10L)

• Who can apply: Small traders, artisans, street vendors, startups

• Loan amount: ₹10,000 to ₹10 lakh

• Repayment: 1–5 years

• Where to apply?: PMMY Portal

Best for: Very small-scale or home-based businesses

State-Level MSME Schemes

1. Gujarat – Mukhyamantri Yuva Swavalamban Yojana (MYSY)

Interest subsidy for education and business loans

• Who can apply: Gujarat-based youth (18–35), with income < ₹6 lakh/year

• What it offers: 5% interest subsidy for up to 5 years

• Where to apply?: MYSY Portal

Best for: Student entrepreneurs and youth-led startups

2. Maharashtra – Maha Udyog Sathi Portal

Single-window clearance for MSME approvals and benefits

• What it offers: Fast-track access to land, permits, subsidies

• Who can apply: MSMEs setting up new units in the state

• Where to apply?: Official Website

Best for: Agro-processing, packaging, and manufacturing

3. Tamil Nadu – Chief Minister’s Employment Generation Programme (CMEGP)

Capital subsidy for rural and urban micro-industries

• What it offers: 25%–35% capital subsidy up to ₹5 lakh

• Who can apply: Unemployed youth, women, and minorities in TN

• Where to apply?: CMEGP Portal

Best for: Tailoring units, food processing, small workshops

4. Uttar Pradesh – One District One Product (ODOP)

Promotes traditional and district-specific local products

• What it offers: Marketing, packaging, and export support

• Who can apply: Traders, artisans, exporters in ODOP districts

• Where to apply?: ODOP Portal

Best for: Chikankari, brassware, mango pulp, leather goods

Emerging & Niche Schemes Worth Tracking (2025)

1. SFURTI – Scheme of Fund for Regeneration of Traditional Industries

• Grants for developing traditional clusters (handloom, agro, bamboo, etc.)

• Best for collective/cooperative units or NGOs working with rural artisans

• Up to ₹5 crore for soft + hard interventions

• Focus on capacity building, tools, and shared facilities

• Know more about SFURTI, here.

2. CREDIT GUARANTEE FUND for Micro & Small Enterprises (CGFMSE) under CGTMSE

• Enables collateral-free loans up to ₹2 crore

• Best for businesses who want loans but lack security

• Available through partner banks and NBFCs

• Know more about CGFMSE, here.

3. Agri Clinics & Agri Business Centres (ACABC)

• Capital subsidy + training for agri-entrepreneurs (input supply, processing, services)

• Best for graduates in agriculture/horticulture/animal husbandry

• Subsidy up to 44% of project cost

• Loans up to ₹20 lakh (individuals), ₹100 lakh (groups)

• Know more about ACABC, here.

4. Operation Greens (TOP to TOTAL)

• 50% subsidy for cold chain logistics, storage, packaging of fruits & vegetables

• Best for FPOs, cooperatives, exporters, and food units

• Focus crops: Tomato, Onion, Potato, and other perishables

• Know more about TOP to Total, here.

5. TReDS – Trade Receivables Discounting System

• Early payment solution for MSMEs against invoices

• Best for MSMEs supplying to corporates or govt

• Enables working capital access without taking loans

• Know more about TReDS, here.

6. Design and IPR Support for MSMEs

• Reimbursement for design work, patents, trademarks, GI tags

• Best for MSMEs launching unique products or branding exports

• Grant up to ₹1.5 lakh for trademarks, ₹2.5 lakh for GI, and more

• Know more about IPR , visit here.

7. Export Promotion Capital Goods (EPCG) Scheme

• Import capital goods at 0% duty for export-oriented units

• Best for manufacturers planning to export goods or services

• Requires export obligation (6x of duty saved)

• Know more about EPCG Scheme, here.

8. Market Development Assistance (MDA) for MSME Exporters

• Travel and participation subsidy for trade fairs and exhibitions abroad

• Best for MSMEs looking to explore exports

• Up to ₹2 lakh per event

• Know more about MDA, here.