List of Government Schemes for MSMEs in 2026: What Each Pays and Whether It Is Open

India has dozens of central schemes for micro, small and medium enterprises, and most "lists" online were written years ago. They still show schemes that stopped taking applications in 2020 or 2025. This guide is for owners who want to know which schemes they can actually use in 2026. Each scheme is sorted by what you need: a loan, a machinery subsidy, a quality certificate, government buyers, skills, or support for SC/ST and women owners. For every scheme we give its status as of October 2026 and its 2026-27 Budget money, and we link to our full guide.

Quick answer

The main government schemes for MSMEs in 2026 are CGTMSE (collateral-free loan guarantees up to ₹10 crore), PMEGP (15–35% subsidy for new micro units), Mudra (loans up to ₹20 lakh), ZED and LEAN under the MSME Champions Scheme, the Public Procurement Policy (25% of central purchases from small firms), ESDP training and the National SC-ST Hub. Many ministry schemes finished their 2021-26 approval on 31 March 2026 and now run on 2026-27 Budget money while their renewal is reviewed.

• Ministry of MSME Budget 2026-27: ₹24,566.27 crore

• Closed: CLCSS (since 2020), Stand-Up India (since March 2025), ASPIRE's TBI part (since 2021)

• Almost every scheme needs a free Udyam registration first

• Check the status column before you spend money expecting a subsidy

How to read this list

Three things decide whether a scheme helps you: who runs it, whether it still takes new applications, and whether there is money behind it.

Who runs it. Most schemes here belong to the Ministry of MSME and its offices: the Development Commissioner (MSME), KVIC, NSIC and the Coir Board. Credit schemes such as Mudra and Stand-Up India belong to the Department of Financial Services in the Finance Ministry. CGTMSE is a trust set up by the MSME ministry and SIDBI. MSE-GIFT and MSE-SPICE are run by SIDBI for the ministry. For a loan scheme you apply through a bank. For a subsidy or certification scheme you usually apply on a portal.

Whether it is open. India approves most central schemes for one Finance Commission cycle at a time. The 15th Finance Commission cycle ended on 31 March 2026. Many MSME ministry schemes, including the MSME Champions Scheme (ZED and LEAN), the National SC-ST Hub and ASPIRE, had guidelines valid "till 31.03.2026". The 16th cycle runs from 2026-27 to 2030-31. Each scheme needs to be appraised again before it is formally renewed. In March 2026 the ministry told the Lok Sabha that the Champions Scheme was being evaluated. As of October 2026 we found no published renewal order for most of these schemes. Their portals are still running and they have 2026-27 money, so in practice they are working. The rules may change when the renewal comes.

Whether there is money. The Budget's Notes on Demands for Grants is the most reliable test. A scheme with a real allocation is running. A scheme with a ₹0.01 crore "token" line is being kept alive on paper to pay old bills, and new sanctions are unlikely. The table below uses the 2026-27 Budget Estimates from that document.

Ministry of MSME money for 2026-27 (Budget Estimates)

₹24,566.27 crore

Total ministry allocation

₹4,500 crore

PMEGP

up from ₹2,548.66 crore RE 2025-26

₹3,860.89 crore

PM Vishwakarma

₹1,900 crore

Self-Reliant India Fund of Funds

₹1,500 crore

RAMP (World Bank programme)

₹0.01 crore

ASPIRE

token line only

Credit and loan schemes

If you need money, start here. None of these schemes lends to you directly. Each one either guarantees a bank loan, subsidises part of the project cost, or lowers the interest you pay. You still apply through a bank, NBFC or the JanSamarth portal.

Most small owners use two schemes together. A typical example: you borrow ₹15 lakh from a public sector bank for a small fabrication unit. CGTMSE covers the loan, so you pledge no property. If it is a new unit, you apply through PMEGP instead. Your bank then gets a margin-money subsidy of 25% (rural general category). On a ₹15 lakh project that is ₹3,75,000. You put in 10% (₹1,50,000), and the bank lends the rest. The subsidy sits in your loan account for 3 years and is then adjusted against the loan. You pay no interest on that part.

The two green schemes under the World Bank-backed RAMP programme need a closer look, because most websites describe them as open without checking dates. MSE-GIFT pays 2% a year interest subvention on green-technology term loans of ₹10 lakh to ₹2 crore, for up to five years. Eligible projects include rooftop solar, energy-efficient machines and effluent treatment. Its May 2024 guidelines say subvention is available only on loans sanctioned up to and including 31 March 2026, or until the corpus is used up, whichever comes first. Loans already sanctioned keep their subvention. For a new loan in 2026, ask your bank whether SIDBI has extended the window before you count on it. MSE-SPICE gives a 25% capital subsidy, up to ₹12.5 lakh, on plant and machinery for recycling and other circular-economy projects in 11 sectors, including plastic, rubber, e-waste and battery recycling. SIDBI's FAQ says only existing (brownfield) units qualify and that a unit can take GIFT or SPICE, not both.

The Union Budget 2026-27 announced two equity measures for growing firms: a ₹10,000 crore SME Growth Fund and a ₹2,000 crore top-up to the Self-Reliant India Fund. Both put money into venture and private equity funds, which then invest in companies. An individual micro unit cannot apply to them. As of October 2026 we had not seen operating guidelines for the SME Growth Fund.

Technology, quality and machinery schemes

This is the group where the most has changed, and where old lists mislead people most.

The Credit Linked Capital Subsidy Scheme (CLCSS) paid 15% of the cost of approved machinery bought with a bank loan, up to a ₹15 lakh subsidy. Its validity ended on 31 March 2020. In August 2021 the Development Commissioner (MSME) confirmed it was no longer accepting applications. The other parts of the old umbrella scheme (CLCS-TUS: ZED, LEAN, design, IPR, incubation and Digital MSME) became the MSME Champions Scheme. Our CLCSS guide explains what replaced it.

The textile ministry's Technology Upgradation Fund (ATUFS) is a separate scheme. It also stopped taking new projects, on 31 March 2022, and only clears old claims now.

The three Champions sub-schemes share a budget of ₹54.72 crore in 2026-27, the same as in 2025-26. ZED is the one most owners use. A micro manufacturer pays nothing for Bronze certification after the subsidy, and certified units get interest and processing-fee concessions from many banks. In its 12 March 2026 Lok Sabha reply, the ministry said both ZED and LEAN cover manufacturing units in all major NIC divisions, from food products to furniture.

If you want a capital subsidy on machinery in 2026, your realistic options are a PMEGP upgradation loan (for units that already used PMEGP), MSE-SPICE (for recycling projects), the SC-ST Hub's capital subsidy (for SC/ST owners), PMFME (for food processors, subject to its own renewal) or your state's industrial policy. Most states pay a capital or interest subsidy to new units in backward districts.

Marketing, procurement and payment schemes

Getting paid, and getting a government order in the first place, matters as much as getting credit.

The Public Procurement Policy for MSEs Order, 2012 is not a grant scheme, but it is worth more to many small firms than any subsidy. Central ministries, departments and CPSEs must buy at least 25% of their annual purchases from micro and small enterprises. Within that, 4% is earmarked for SC/ST-owned units and 3% for women-owned units. In a tender, a small firm quoting within L1 + 15% can match the L1 price and supply up to 25% of the order. MSEs get tender documents free and do not pay earnest money deposit (EMD). The policy does not exempt them from performance bank guarantees, though. 358 items are reserved for purchase from MSEs only. The policy covers goods and services that MSEs make or provide themselves. Traders and works contracts are excluded. You claim these benefits through Udyam registration on GeM or the CPP portal.

The Procurement and Marketing Support (PMS) Scheme has ₹65 crore for 2026-27. It funds MSME stalls at domestic trade fairs and the MSME Expo, along with workshops on packaging, GeM and export procedures. You apply through the nearest MSME Development and Facilitation Office (MSME-DFO) when it announces an event. For delayed payments, the MSME ODR portal, launched on 27 June 2025 under RAMP, replaced Samadhaan as the place to file a complaint. The MSME Samadhaan guide explains the 45 days rule and interest at 3× the RBI bank rate.

Skills, training and cluster schemes

Training schemes are the easiest to get into: they are usually free or nearly free and need little paperwork. The Entrepreneurship and Skill Development Programme (ESDP) has ₹96 crore for 2026-27. It runs one-day awareness camps, six-week skill courses and one-week management programmes through MSME-DFOs and technology centres. About about 40% of seats are meant for SC/ST, women, persons with disabilities and other weaker sections. Its advanced courses cover 80% of cost, up to ₹50,000 per candidate. Our ESDP guide lists the modules. Assistance to Training Institutions funds the national institutes (NI-MSME, IIE Guwahati and others) that run these courses.

Two schemes work at the level of a whole cluster rather than one firm. SFURTI (₹197.49 crore) funds common facility centres for traditional artisan clusters, up to ₹2.5 crore for a regular cluster. The MSE Cluster Development Programme (₹410 crore) funds common facility centres and industrial estates through state governments. You can't apply for either alone. An association, cooperative or special purpose vehicle of local firms applies, usually with the state industries department or KVIC. If your town has an active cluster association, ask whether a project is planned.

For traditional artisans, PM Vishwakarma (₹3,860.89 crore in 2026-27) is the largest scheme. It gives a toolkit grant of ₹15,000, training with a stipend of ₹500 per day and collateral-free loans of up to ₹3 lakh at 5%. Details are in our PM Vishwakarma guide. Khadi and village-industry units can also use KVIC's schemes.

MSME scheme dates to watch

31 Mar 2020

CLCSS (15% capital subsidy) stops taking new cases

31 Mar 2025

Stand-Up India sanction period ends; revamp awaited

31 Mar 2026

MSE-GIFT sanction cut-off; 2021-26 approvals of ZED/LEAN, SC-ST Hub and ASPIRE end

1 Apr 2026

16th Finance Commission cycle (2026-31) begins; schemes run on 2026-27 Budget while renewals are reviewed

31 March 2027

Last date for ECLGS 5.0 sanctions

Schemes for SC/ST and women entrepreneurs

The National SC-ST Hub (NSSH), run by NSIC, is the main ministry scheme for SC/ST owners. It has ₹115 crore for 2026-27. It pays a 25% capital subsidy on machinery loans up to ₹1 crore. It reimburses testing fees, performance bank guarantee charges and loan processing fees, each at 80% or ₹1 lakh a year, whichever is less. It also pays for trade fairs and vendor development programmes. Its 2021-26 guidelines ran to 31 March 2026, but its portal was taking 2026-27 applications in October 2026. See our National SC-ST Hub guide.

Women owners get advantages spread across several schemes rather than one dedicated scheme:

• CGTMSE covers 90% of the loan for women-owned units and gives a 10% discount on the guarantee fee.
• ZED certification is free for women-led MSMEs.
• PMEGP pays women the special-category subsidy: 25% urban and 35% rural.
• 3% of central procurement is earmarked for women-owned MSEs.

Stand-Up India, which lent ₹10 lakh to ₹1 crore to women and SC/ST founders, stopped after 31 March 2025. A revamp with loans up to ₹2 crore has been announced but had not been notified as of October 2026. Several states run their own women's schemes, such as Karnataka's Udyogini. Our guide to business loans for women compares them.

State government schemes sit on top of these

Every state runs its own MSME schemes alongside the central ones, and for machinery they are often more generous. Most state industrial policies offer some mix of a capital investment subsidy on plant and machinery, an interest subsidy on term loans, a refund of stamp duty on land or a lease deed, an electricity duty waiver, and reimbursement of the state's share of GST for a few years. The rates are usually higher in backward districts and for SC/ST and women owners. Some states also run their own employment-generation loans modelled on PMEGP, such as Maharashtra's CMEGP. Central and state benefits can usually be combined, but a state rarely pays a subsidy on the same machine that has already earned a central capital subsidy. Your District Industries Centre is the place to ask, because it processes most state incentive claims and can tell you which policy applies on your date of commercial production.

How to apply without wasting time

A sensible order for using MSME schemes

1. 1

   Register on Udyam

   Free on udyamregistration.gov.in with Aadhaar and PAN. Almost every scheme above asks for the Udyam number.

   Udyam registration guide
2. 2

   Sort out credit first

   Ask your bank for a CGTMSE-covered loan, or apply for PMEGP or Mudra if you are starting up. Compare offers on JanSamarth.

3. 3

   Get onto GeM and get ZED Bronze

   A GeM seller ID and ZED certificate open up government buyers and bank concessions at little or no cost to a micro unit.

4. 4

   Add the special-category schemes

   SC/ST owners register with the SC-ST Hub; women and artisans check the women-specific benefits and PM Vishwakarma.

5. 5

   Confirm status before you spend

   For any subsidy, get the bank's or nodal office's written confirmation that the scheme is sanctioning new cases before buying machines.

The commonest mistake we see is buying machinery first and asking about a subsidy later. Almost every capital subsidy in India is credit-linked: the subsidy is calculated on a term loan sanctioned under the scheme. It goes to your bank, sits in a fixed deposit or your loan account for about three years, and is then adjusted against the loan. If you pay for the machine from your own savings, or with a loan sanctioned before you applied, you usually cannot claim it afterwards. Also beware of agents who charge fees to "register" you for schemes. Udyam, GeM, ZED and the SC-ST Hub are all free to join on official portals.

The second mistake is assuming that a scheme is closed or open based on an old article. Schemes are renewed in five-year cycles and often run for months on interim budgets between approvals. That is the position for several ministry schemes in 2026. The safest check is to look at the scheme's own portal and the latest Budget allocation, then ask the bank or DFO in writing.

Official links

• Ministry of MSME — schemesScheme pages and guidelines
• Notes on Demands for Grants 2026-27 (MSME)Scheme-wise Budget allocations
• Udyam RegistrationFree registration needed for most schemes
• CGTMSECredit guarantee details and fee
• ZED / LEAN portalPledge and certification
• National SC-ST HubSC/ST subsidies and reimbursements
• Public Procurement Policy FAQs25% target, EMD exemption, reserved items

What to do next

Start with the scheme that matches your biggest problem. If it is money, read our CGTMSE and PMEGP guides and test what EMI you can afford with the EMI calculator. If it is buyers, register on GeM and get ZED Bronze. If you are an SC/ST owner, the SC-ST Hub guide shows how to claim reimbursements you may already be entitled to. We update this list every month, so check back when the 2026-31 renewals are announced.

Frequently asked questions

Which government schemes for MSMEs are open in 2026?

Open to new applicants as of October 2026: CGTMSE credit guarantees (up to ₹10 crore), PMEGP margin-money subsidy, Mudra loans (up to ₹20 lakh), PM Vishwakarma, the Public Procurement Policy, ESDP training, the National SC-ST Hub and the MSME credit card. Several others, including ZED, LEAN and the SC-ST Hub, finished their 2021-26 approval period and run on 2026-27 budget money while renewal is reviewed.

Is there a PDF list of MSME schemes?

The Ministry of MSME's own scheme list is on msme.gov.in, and the Budget's Notes on Demands for Grants (Demand No. 68) lists every scheme with its 2026-27 allocation as a PDF on indiabudget.gov.in. Neither tells you which schemes accept new applications, so use the status column in this guide and confirm on each scheme's portal before you apply.

Which MSME scheme gives the highest subsidy?

For a new micro unit, PMEGP pays the largest share: 15% to 35% of a project of up to ₹50 lakh in manufacturing. For SC/ST-owned units buying machinery, the SC-ST Hub's capital subsidy pays 25% of a loan of up to ₹1 crore. The old 15% CLCSS for technology upgradation closed in 2020.

Do I need Udyam registration to use MSME schemes?

For almost all of them, yes. CGTMSE, the procurement policy, ZED, LEAN, MSE-GIFT, MSE-SPICE and the SC-ST Hub all ask for a Udyam registration number. It is free and takes about 15 minutes on udyamregistration.gov.in. PMEGP and Mudra loans can be applied for before the business is registered, but Udyam is needed before or at disbursement.

Which MSME schemes are for women entrepreneurs?

Women-owned units get 90% CGTMSE cover and a fee discount, ZED certification free of cost, a 3% sub-target in central government purchases, a higher PMEGP subsidy (25% urban, 35% rural) and priority in the SC-ST Hub if they are SC/ST. Stand-Up India loans for women ended on 31 March 2025, and a revamped scheme was still awaited in October 2026.

What happened to the CLCSS technology upgradation subsidy?

The 15% Credit Linked Capital Subsidy stopped taking new cases after 31 March 2020. Its other parts became the MSME Champions Scheme (ZED, LEAN, incubation, design and IPR). The 2026-27 Budget keeps only a ₹0.01 crore token line for old CLCS liabilities. SC/ST units can still claim a 25% capital subsidy through the National SC-ST Hub.

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.Notes on Demands for Grants 2026-27, Demand No. 68 — Ministry of MSME — Ministry of Finance (Union Budget) · accessed 9 October 2026
2. 2.Union Budget 2026-27: Building Champion MSMEs for a Global India (15 Feb 2026) — PIB · accessed 9 October 2026
3. 3.MSME Champions Scheme progress (Lok Sabha reply, 12 Mar 2026) — PIB — Ministry of MSME · accessed 9 October 2026
4. 4.Launch of MSE GIFT, MSE SPICE and MSE ODR schemes under RAMP (20 Dec 2023) — PIB — Ministry of MSME · accessed 9 October 2026
5. 5.Scheme Guidelines — MSE Green Investment and Financing for Transformation (May 2024) — SIDBI / Ministry of MSME · accessed 9 October 2026
6. 6.FAQs under MSE-SPICE — SIDBI · accessed 9 October 2026
7. 7.FAQs on Public Procurement Policy for MSEs Order, 2012 (25 Mar 2022) — Office of the DC (MSME) · accessed 9 October 2026
8. 8.Revised Guidelines of National SC-ST Hub (15 May 2025) — Ministry of MSME / NSIC · accessed 9 October 2026
9. 9.ASPIRE portal and Revised Operational Guidelines (effective 21 Nov 2023) — Ministry of MSME · accessed 9 October 2026
10. 10.Revised Guidelines of CLCS component of CLCS-TUS (13 Dec 2019) — Office of the DC (MSME) · accessed 9 October 2026