Design Scheme Under MSME Innovative Scheme
Under MSME Innovative Scheme by Ministry of MSME
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Quick Answer
The Design Scheme under the MSME Innovative Scheme provides financial assistance and expert design consultancy to micro, small, and medium enterprises for new product development and existing product enhancement.
- Funding amount
- Up to ₹40L
- Funding type
- Grant
- Provider
- Ministry of MSME
- Application deadline
- Rolling
- Location
- Open to startups registered in India
- Registrations needed
- Udyam registration
About this grant
The "Design scheme" is a crucial component of the "MSME Innovative Scheme," launched by the Ministry of Micro, Small & Medium Enterprises. Its primary objective is to empower MSMEs by providing them with access to specialized design advice and interventions. This scheme aims to help businesses conceptualize, develop, and enhance their product portfolios through professional design strategies. By integrating design expertise, MSMEs can foster innovation, improve product aesthetics, functionality, and market competitiveness.
The scheme is broadly structured into two main parts:
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Design Projects: This segment focuses on facilitating MSMEs to develop innovative design strategies and create design-related products. It involves direct interventions and consultancy services from experienced design professionals. The financial assistance under this activity is specifically earmarked for engaging design consultants and covering expenses related to prototype and product development. This support enables MSMEs to translate their ideas into tangible, market-ready products or significantly enhance existing ones.
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Design Awareness Programme: The objective of this component is to cultivate a broader understanding and appreciation for the strategic value of design in business. Through various activities like seminars, talks, and workshops, the program seeks to sensitize MSMEs about the transformative power of design and innovation across different facets of their industry. This awareness aims to integrate design thinking into the core business processes of MSMEs, fostering a culture of innovation and continuous improvement.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The Ministry of Micro, Small and Medium Enterprises (Ministry of MSME) is the Government of India ministry for the MSME sector. It does not run one programme. It runs a set of central schemes, each with its own portal and its own route in: a credit-linked subsidy for new…
Learn moreBenefits & Funding
- Amount
- Up to ₹40L
- Fund type
- Grant
- Equity
- Equity-free
- Repayment
- Non-repayable
What You Get
The Design Scheme offers significant financial assistance and strategic support to eligible MSMEs. For Design Projects, the Government of India contributes a substantial portion of the total project cost: 75% for Micro enterprises and 60% for Small & Medium enterprises, with a maximum government contribution of ₹40 lakh (₹40,00,000). The remaining project cost is borne by the MSME and deposited to the Implementing Agency. This grant is disbursed in three stages linked to project milestones: 40% at the Strategy & Concept stage, 30% at the Detail Design stage, and 30% upon successful completion of the prototype/product and final report submission. This structured disbursement ensures progress-linked funding. Additionally, a Student Project component supports bona-fide student design work for MSMEs, providing financial assistance up to ₹2.5 lakh (₹2,50,000), covering 75% of the total student project cost. Beyond financial aid, the scheme provides specialist design advice from experienced designers and offers extensive Design Awareness Programmes through seminars, talks, and workshops, aiming to sensitize MSMEs about the value and power of design for business growth and innovation.
- Disbursement
- Tranched
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications received for the Design Scheme are typically reviewed based on the project's alignment with the scheme's objectives, the innovative potential of the design, the feasibility of the prototype/product development plan, and the impact on the MSME. A committee of experts likely evaluates the proposals, potentially inviting shortlisted MSMEs for presentations or interviews to assess their project viability and the expertise of their chosen design consultants.
Application Process
- 1
Visit Portal
Applicant visits the MSME Innovative Scheme website.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the MSME Design Scheme?
The scheme aims to help MSMEs access expert advice on all aspects of design, enabling them to realize their design-related objectives, develop new products, and enhance their existing product portfolios through design interventions.
What are the two main parts of the Design Scheme?
The scheme is divided into two major parts: 'Design Projects,' which facilitates MSMEs in developing new design strategies and products through consultancy, and 'Design Awareness Programme,' which creates general awareness about the value of design through seminars, talks, and workshops.
What is the maximum financial assistance available for Design Projects?
For approved Design Projects, the Government of India contributes up to a maximum of ₹40 lakh (₹40,00,000). For Micro enterprises, the government contributes 75% of the project cost, and for Small & Medium enterprises, it contributes 60%.
How is the financial assistance for Design Projects disbursed?
The total project cost is provided as a grant in three stages: 40% at the Strategy & Concept stage, 30% at the Detail Design stage, and 30% upon successful completion of the prototype/product and final report submission.
Is there support for student design work?
Yes, the 'Student Project' component provides financial assistance up to ₹2.5 lakh (₹2,50,000) for design work by bona-fide students, with the Government of India contributing 75% of the total student project cost.
What are the eligibility criteria for MSMEs to apply?
Beneficiary units must be registered micro, small, or medium enterprises and possess a valid Udyog Aadhaar Memorandum (UAM) or Udyam Registration certificate.
Sources
Data on this page is compiled from official program and provider references.
News
- Defence Research and Development Organisation (DRDO) allowed MSMEs and deeptech startups to access testing facilities across 24 of its laboratories free of charge through a single portal under specified projects. At VIMARSH on September 15, Defenceinstagram.com · 2 weeks ago
- Gujarat offers MSMEs interest aid, power subsidies and support for AI adoptionedexlive.com · 2 weeks ago
- Industry Ministry Launches CAM-PACK+ Project to Expand MSME Market Access Through Packaging Innovationconstruction-property.com · 2 weeks ago
- PRIP Scheme Opens New Discovery Track for Startups & MSMEs with Financial Assistance up to ₹50 Crorea2ztaxcorp.net · 3 weeks ago
- New Discovery Track for Startups and MSMEs with Financial Assistance upto ₹50 cr under PRIP Scheme announcedpib.gov.in · 3 weeks ago
- India-Denmark Partnership Targets IP Capacity Gaps, Commercialisation Challenges For MSMEsknnindia.co.in · last month
Source: Google News aggregated
