Government schemes & funding

Entrepreneurship Development Programme (EDP) in 2026: MSME ESDP, PMEGP Training and How to Enrol

Entrepreneurship development programme guide for 2026: MSME ESDP courses, durations, fees, the PMEGP EDP rule, NI-MSME, NIESBUD, RSETIs and how to enrol.

Photo of Sumeet YadavEdited by Sumeet YadavFounder & editor, MSMETOOLS · fact-checked against official sources
Updated October 2026 Verified against official sources 9 October 2026 16 min read
Entrepreneurship development programme — MSME ESDP and PMEGP EDP — MSMETOOLS guide cover
Contents (11)
  1. 1. What an entrepreneurship development programme is
  2. 2. Who runs entrepreneurship development programmes in India
  3. 3. The MSME ESDP modules compared
  4. 4. Fees, stipends and certificates
  5. 5. The PMEGP EDP requirement
  6. 6. How to enrol in an entrepreneurship development programme
  7. 7. Women entrepreneurship development programmes
  8. 8. What changed in 2025–26
  9. 9. Common mistakes and how to fix them
  10. 10. Official links
  11. 11. What to do next

An entrepreneurship development programme (EDP) is the training the government expects you to take before it backs your first business — and in some cases, such as PMEGP, the subsidy is not released until you finish it. This guide is for first-time founders, existing MSME owners and anyone told by a bank or the District Industries Centre to "complete EDP". It explains which programmes exist in 2026, how long each runs, what it costs, which one PMEGP accepts, and the exact steps to enrol, checked against the Ministry of MSME guidelines as of October 2026.

Quick answer

In India, the main government entrepreneurship development programme is the Ministry of MSME's Entrepreneurship and Skill Development Programme (ESDP), run through MSME offices, technology centres and government institutes. PMEGP applicants take a separate EDP through KVIC-approved centres. Training is low-cost or free for women, SC/ST, PH and BPL participants.

  • ESDP modules: awareness (1 day), skill programme (6 weeks), management programme (1 week) and advanced courses

  • PMEGP EDP: none up to ₹2 lakh, 5 days up to ₹5 lakh, 10 days above that

  • Age 18+; certificate needs 80% attendance, Aadhaar-verified

  • No stipend under the 2022 ESDP guidelines; fee waived for weaker sections

What an entrepreneurship development programme is

An EDP is a short, structured course that takes you from "I have an idea" to "I can run this unit and repay a loan". The standard syllabus covers spotting a viable product or service, market survey, writing a project report, costing and pricing, sources of finance and how banks appraise a loan, book-keeping, GST and Udyam registration, and basic marketing. Good programmes add a visit to a working unit and a session with a banker so you hear what gets a loan sanctioned.

The objectives written into the Ministry of MSME's ESDP guidelines are practical. The scheme is meant to motivate young people — explicitly including SC and ST candidates, women, the physically challenged, ex-servicemen and people below the poverty line — to treat self-employment as a career option. It aims to give them technical and business skills early, help them set up new micro and small enterprises, build the capacity of existing ones, and get every trained founder a Udyam registration. Implementing agencies are now expected to handle that Udyam step for their trainees.

The difference between an EDP and a pure skill course matters. A tailoring or welding course teaches the trade; an EDP teaches the business around it. The Ministry's E-SDP combines both over six weeks, which is why it is the most useful single course for someone starting a manufacturing or repair unit from scratch.

The three phases of an EDP

Textbooks split every EDP into three phases, and the government programmes follow the same logic. Pre-training is identifying and selecting candidates — under ESDP this happens through online applications on the Ministry's MIS, with preference for women, SC/ST, ex-servicemen, differently abled and BPL applicants. Training is the classroom and hands-on part, delivered in four sessions a day for E-SDP and MDP batches. Post-training follow-up is hand-holding: help with the project report, loan application and registration. Follow-up is the weakest phase in practice, so ask the institute what support it gives after the last day before you sign up.

Who runs entrepreneurship development programmes in India

Several government bodies run EDPs, and they are not interchangeable. Picking the right one depends on what you need the certificate for.

ProviderMinistryWhat it runsBest for
MSME DFOs (formerly MSME-DIs), Technology Centres, government institutesMSMEESDP: EAP, E-SDP, MDP, advanced coursesMost first-time founders and MSME owners
ni-msme, HyderabadMSMEESDPs under the ATI scheme, trainer programmesLonger courses, women's programmes, trainers
NIESBUD, NoidaSkill Development & EntrepreneurshipEDPs, ESDPs, MDPs, training of trainersSponsored batches, mentoring support
IIE, GuwahatiSkill Development & EntrepreneurshipEDPs with a North-East focusFounders in the NE states
KVIC / KVIB centres and accredited institutesMSMEPMEGP EDP (online or offline)Anyone with a PMEGP loan application
RSETIs (bank-sponsored, one per district in most states)Rural DevelopmentFree residential self-employment coursesRural youth aged 18–45

The Ministry of MSME's field offices now go by the name MSME Development and Facilitation Offices (DFOs) on the ESDP portal, though many state pages still say MSME-DI. NIESBUD and IIE moved from the MSME Ministry to the Ministry of Skill Development and Entrepreneurship in 2015; the PMEGP guidelines still list them, along with ni-msme, as accredited EDP providers. NIESBUD reports having trained over 16.9 lakh people through more than 61,000 programmes since it was set up.

Women from a self-help group listening during a basic business training session in India
Awareness and basic business modules are where most first-time entrepreneurs start.· Image: McKay Savage (CC BY 2.0)

The MSME ESDP modules compared

The Ministry of MSME's ESDP is a sub-component of the "Development of MSMEs" scheme. Its guidelines, approved for the 15th Finance Commission period and in force from 25 March 2022, set out five modules. The FY 2025–26 call for implementing agencies still points to these guidelines, so they remain the current rulebook.

ESDP modules at a glance

Entrepreneurship Awareness Programme (EAP)

Duration

1 day

Batch

50–100

Who it suits

Anyone exploring self-employment

Funding

Up to ₹20,000 per programme

Entrepreneurship-cum-Skill Development Programme (E-SDP)

Duration

6 weeks

Batch

25–30

Who it suits

New founders who need a trade skill plus business basics

Funding

Up to ₹1.25 lakh per programme

Advanced E-SDP

Duration

Minimum 5 working days

Batch

About 20

Who it suits

Tech or agri ventures; delivered by IITs, IIMs, ICAR, CSIR etc.

Funding

80% of cost, up to ₹50,000 per candidate

Management Development Programme (MDP)

Duration

1 week

Batch

25–30

Who it suits

Existing MSME owners and supervisors

Funding

Up to ₹50,000 per programme

Advanced MDP

Duration

Minimum 5 working days

Batch

About 25

Who it suits

MSME promoters and executives; at administrative training institutes

Funding

₹4,000 a day (₹8,000 residential)

EAP is a one-day session with inaugural and technical talks and one-to-one counselling. The guidelines want at least one in every district, and a quarter to half of them run with industry clusters or associations. Treat it as a filter: you leave knowing which schemes fit you and which longer course to apply for.

E-SDP is the core course. It runs six weeks with four sessions a day and pairs business modules with hands-on practice in a trade. The guidelines list examples such as agro-based products, herbal cosmetics, fashion garments, food and fruit processing, soap and detergents, leather and jute goods, machine shop work, welding and fabrication, electrical appliance and mobile repair, solar equipment installation, computer hardware, computerised accounting and screen printing. Around about 40% of E-SDP beneficiaries are meant to come from SC/ST, women and physically challenged groups.

Advanced E-SDP is the high-end option for ventures that need specialist knowledge — e-commerce, software, biotech, modern agriculture and animal husbandry, food processing, or technology licensed from labs such as CSIR, DRDO or BARC. The scheme pays 80% of the cost up to ₹50,000 per candidate; the other 20% comes from you or as infrastructure support from the institute.

MDP is for people already running a unit. Topics include working capital, marketing, exports, materials and supply chain, digital marketing, ISO and quality systems, and intellectual property. Advanced MDP runs at state administrative training institutes and similar bodies, is fully funded, and lets bank and government officers attend alongside MSME owners — at least 75% of each batch must be MSME participants.

Fees, stipends and certificates

Fees are decided by the head of the implementing institute and published with each course. The guidelines make E-SDP free for SC, ST, differently abled, ex-servicemen, BPL participants and women, and the overall ESDP rules say no participation fee is charged from SC, ST, PH, BPL candidates and women. Advanced MDP is fully funded. Advanced E-SDP can carry a 20% share for the candidate unless the institute absorbs it.

On stipends, read older material carefully. The 2022 guidelines do not provide a stipend for trainees — the only stipend they mention is for up to five MBA or engineering students hired by the Ministry. Some state portals, including Andhra Pradesh's MSME ONE page, still describe a ₹500 per month stipend for weaker-section batches from earlier rules. If a stipend matters to you, ask the institute in writing before the course starts.

ESDP rules worth knowing (2026)

18+

Minimum age

No upper limit; relaxation possible for school drop-outs

80%

Attendance for a certificate

Aadhaar-authenticated

about 40%

E-SDP target for SC/ST/women/PH

22.6 lakh

ESDP beneficiaries to date

ESDP portal, Oct 2026

Attendance is captured through Aadhaar authentication to stop the same person being counted twice, and a certificate of participation is issued only at 80% attendance or above. That has a practical consequence: if you miss more than a few days of a six-week E-SDP, you may finish without the certificate a bank or scheme asks for. Plan leave from work or family commitments before you enrol.

The PMEGP EDP requirement

If you have applied for a PMEGP loan, the EDP you need is set by the PMEGP guidelines, not the ESDP ones. The rule depends on project cost:

Which PMEGP EDP do you need?

Step 1

Project up to ₹2 lakh

EDP not mandatory

Step 2

Up to ₹5 lakh

at least 5 days

Step 3

Above ₹5 lakh

at least 10 days

Step 4

Certificate on portal

before subsidy claim

You can do the training online or offline and choose the centre for offline mode. KVIC conducts it through its own and KVIB training centres and accredited centres — including ni-msme, NIESBUD, IIE, NSIC, RSETIs, state government institutes and banks' training centres. The syllabus covers finance, production, marketing, banking formalities, book-keeping and statutory compliance, with interaction with successful rural entrepreneurs and bankers.

Three timing rules save weeks. First, you do not have to wait for the bank to sanction the loan — the guidelines let you take EDP any time after filing the online application, on payment of the EDP charges, in consultation with KVIC's state office. Second, once the bank sanctions the loan, the sanction is automatically forwarded to the EDP portal and the training centre if you haven't trained yet. Third, within 30 working days of the sanction letter you must deposit your own contribution and a copy of the EDP certificate (with photo and Aadhaar number) with the bank. The bank cannot file the margin money claim until EDP is marked complete on the portal.

You are exempt if you have already completed EDP, a skill development programme, an ESDP or vocational training of at least 10 days offline or 60 hours online. Keep that older certificate handy and upload it with your application; it is the simplest way to skip a repeat course.

Worked examples

Ramesh, Nashik — ₹1.8 lakh mobile repair shop. His PMEGP project is under ₹2 lakh, so no EDP is mandatory. He still joins a free one-day EAP at the local MSME DFO to learn about Udyam registration and GST, which costs him one day and nothing else.

Sunita, Jaipur — ₹4.5 lakh tailoring unit. As a woman applicant in the special category she gets the higher PMEGP subsidy, and her project falls in the up-to-₹5-lakh band, so she needs 5 days of EDP. She takes it online in the week after filing her application, so the certificate is already on the portal when the bank sanctions the loan.

Imran, Lucknow — ₹18 lakh food-processing unit. His project needs 10 days of EDP. Two years ago he finished a six-week E-SDP in fruit processing at an MSME Technology Centre, which is well above the 10-day threshold, so he uploads that certificate and is exempt.

Kavita, Coimbatore — existing ₹2 crore engineering unit. She doesn't need an EDP; she needs a management course. A non-residential Advanced MDP on export management at a state administrative training institute is fully funded at ₹4,000 a day (₹8,000 residential) per participant, so a six-day course worth ₹20,000 costs her firm nothing beyond travel, which the guidelines leave to the participant.

How to enrol in an entrepreneurship development programme

Enrolment differs by provider. The ESDP portal lists programme counts, institutions and calendars but does not yet offer a single public sign-up form, so in practice you apply to the institute running the batch.

Enrolling in a government EDP

  1. 1

    Decide what you need the certificate for

    PMEGP loan → a KVIC-recognised EDP of the right length. General start-up help → ESDP EAP or E-SDP. Running a unit → MDP or Advanced MDP. Rural, unemployed and 18–45 → your district RSETI.

  2. 2

    Find a batch near you

    Check the Training Calendar and Institutions lists on the ESDP portal, the notice board of your nearest MSME DFO or Technology Centre, NIESBUD's Forthcoming Programmes page, or your District Industries Centre.

    Open the ESDP portal
  3. 3

    Apply with the institute

    Fill the institute's online or paper form. Keep Aadhaar (for authenticated attendance), a photo, caste or disability certificate if you claim a fee waiver, and education certificates if the course notice asks for them.

    Tip: Ask whether a stipend, hostel or study material is provided — it varies by institute.

  4. 4

    Attend at least 80%

    Attendance is Aadhaar-verified. Below 80% you don't get the certificate.

  5. 5

    Use the certificate

    For PMEGP, check that the institute has uploaded it to the portal and give the bank a copy. For other loans, attach it to your project report — it shows the bank you have been trained.

For PMEGP specifically, start from the KVIC PMEGP e-portal after you have filed your application; the training request is linked to your application ID. If you have been told to attend an RSETI, contact the RSETI run by your district's lead bank — RSETIs train unemployed youth aged 18–45 and, per a 2023 Rajya Sabha reply, about 590 were working across 572 districts.

Three-storey building of the Rural Institute of Vocational Training at Badal, Punjab
Skill-heavy E-SDP batches run at institutes with workshops, not just classrooms.· Image: Sarbjit Bahga (CC BY-SA 4.0)

Women entrepreneurship development programmes

There is no separate central "WEDP" scheme under the MSME Ministry today; women are built into ESDP through the fee waiver, the preference in selection and the about 40% E-SDP target. Many institutes run women-only batches inside ESDP, and ni-msme regularly runs women-focused programmes — in January 2026 it trained rural-enterprise coordinators for Telangana's Society for Elimination of Rural Poverty. Women applying for PMEGP also get the higher special-category subsidy, and for loans above ₹10 lakh, Stand-Up India is the matching credit scheme.

If you are a woman founder, ask three questions before you enrol: is the batch women-only, are classes timed around childcare, and does the institute help with the project report afterwards? These matter more to completion rates than the syllabus.

What changed in 2025–26

The ESDP rulebook has not been rewritten since 2022, but how it is delivered has changed. The FY 2025–26 call for implementing agencies was limited to government bodies — IITs, IIMs, NITs, technology centres, tool rooms, central and state universities, government agricultural universities and research centres. Private institutes, private universities, NGOs and private companies were not eligible. If a private academy tells you its course is an "MSME ESDP", check its name against the institutions list on the ESDP portal.

Second, ni-msme now runs ESDPs funded through the Assistance to Training Institutions (ATI) scheme; the 2026 batches were inaugurated on 14 July 2026 by the Minister of State for MSME, and certificates for the 2025–26 batches were handed out in April 2026. Third, the scale of ESDP has grown: the portal now reports about 49,785 programmes and 22.6 lakh beneficiaries.

Before you enrol — checklist

0/7

Common mistakes and how to fix them

  1. Waiting for loan sanction before starting EDP. PMEGP lets you train right after filing. Do it early, or your first loan instalment and subsidy claim stall.
  2. Taking a course that is too short. A 5-day certificate does not satisfy a project above ₹5 lakh. If your bank revises the project cost upward, check whether you have crossed the ₹5 lakh line.
  3. Paying a private "EDP certificate" agent. Certificates come from the training institute after real, Aadhaar-verified attendance. A bought certificate will not appear on the PMEGP portal.
  4. Repeating training you already have. Ten days offline or 60 hours online of earlier EDP, SDP, ESDP or vocational training exempts you from PMEGP's EDP. Upload the old certificate.
  5. Ignoring follow-up support. The best part of a good EDP is help with the project report and bank meeting afterwards. If the institute offers it, use it.

What to do next

If your EDP is for a PMEGP loan, read the PMEGP loan guide for the subsidy maths and the steps after training. Start your project report with the business plan generator and check the numbers with the startup cost calculator and break-even calculator. Your nearest District Industries Centre can point you to the next local batch, and once you start trading, complete Udyam registration — it's free.

Frequently asked questions

An entrepreneurship development programme (EDP) is a structured training course that teaches people how to start and run a small business — choosing a product, preparing a project report, getting a bank loan, costing, marketing and compliance. In India the main government versions are the MSME Ministry's ESDP courses, PMEGP's EDP run through KVIC, and courses at NI-MSME, NIESBUD, IIE and RSETIs.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

  1. 1.Guidelines for Entrepreneurship and Skill Development Programme (ESDP), with OM dated 25.03.2022 — Office of the Development Commissioner (MSME) · accessed 9 October 2026
  2. 2.ESDP portal — programme types, training calendar, institutions — Ministry of MSME · accessed 9 October 2026
  3. 3.Expression of Interest for empanelment of ESDP implementing agencies, FY 2025–26 — Office of the Development Commissioner (MSME) · accessed 9 October 2026
  4. 4.PMEGP revised scheme guidelines (15th Finance Commission cycle) — Ministry of MSME / KVIC (hosted by Govt of Sikkim) · accessed 9 October 2026
  5. 5.National Institute for Entrepreneurship and Small Business Development — NIESBUD (Ministry of Skill Development and Entrepreneurship) · accessed 9 October 2026
  6. 6.ni-msme news — ATI programmes inaugurated, 14 July 2026 — ni-msme, Hyderabad (Ministry of MSME) · accessed 9 October 2026
  7. 7.Rajya Sabha unstarred question 2234 (6 August 2021) — IIE Guwahati — Rajya Sabha · accessed 9 October 2026
  8. 8.Rajya Sabha unstarred question 3295 (29 March 2023) — RSETIs — Rajya Sabha · accessed 9 October 2026
  9. 9.ESDP scheme page — AP MSME ONE — Government of Andhra Pradesh · accessed 9 October 2026

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