2025 MSME Government Schemes Every Indian Business Should Know

India’s Micro, Small and Medium Enterprises (MSMEs) are no less than the heartbeat of the economy. From handloom in Varanasi to tech startups in Bangalore, MSMEs span industries and geographies — contributing nearly 30% of India’s GDP and providing employment to over 11 crore people.

But running a small business is no small feat. To help ease the load, the Indian government has rolled out several schemes that offer financial support, market access, infrastructure, and more. If you’re a business owner, here are the top MSME schemes to know about in 2025 — explained in bite-sized, easy-to-digest formats.

First, What Counts as an MSME?

Before diving into the schemes, let’s get our basics in place. 

• Micro Enterprises: Investment up to Rs. 1 crore and turnover up to Rs. 5 crore
• Small Enterprises: Investment up to Rs. 10 crore and turnover up to Rs. 50 crore
• Medium Enterprises: Investment up to Rs. 50 crore and turnover up to Rs. 250 crore

Tip: Register on the Udyam Portal to be officially recognised as an MSME and become eligible for most schemes.

Top Government Schemes for MSMEs in 2025

Here are the top schemes that MSME owners across India are tapping into this year.

1. Pradhan Mantri Mudra Yojana (PMMY)

What it offers:

Collateral-free loans up to Rs. 10 lakh for micro and small businesses.

Three categories:

• Shishu: Loans up to Rs. 50,000 (ideal for startups)
• Kishor: Loans between Rs. 50,001 to Rs. 5 lakh (for growth stage)
• Tarun: Loans from Rs. 5 lakh to Rs. 10 lakh (for expansion)

Who can apply:

• Traders, manufacturers, service providers
• Women entrepreneurs and youth in rural/urban India

Why it matters:

Over 30 crore loans have been sanctioned under Mudra since launch — it’s one of the easiest ways to access funds without pledging assets.

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

What it offers:

• Credit guarantees up to Rs. 2 crore for loans taken by MSMEs
• Collateral not required
• Reduces risk for lenders

Best for:

First-time borrowers or those with limited collateral.

Tip: Combine with Mudra or Stand-Up India for maximum support.

3. ZED (Zero Defect, Zero Effect) Certification Scheme

What it offers:

• Financial assistance for MSMEs adopting eco-friendly manufacturing
• Quality and sustainability certification

Why apply?

• Boosts export credibility
• Helps with procurement tenders
• Encourages clean and green production

4. Udyam Assist Platform (UAP)

What it offers:

• Simplified registration for informal micro businesses
• Legal recognition to unlock other government benefits

Key advantages:

• Registration even without GST
• Support available in regional languages

Tip: Registration is free. Beware of consultants charging for it.

5. Stand-Up India Scheme

What it offers:

• Loans from Rs. 10 lakh to Rs. 1 crore
• Targeted at SC/ST and women entrepreneurs

Applicable sectors:

• Manufacturing
• Services
• Agriculture-allied sectors

Eligibility:

• New ventures only
• At least 51% stake must be held by SC/ST or woman

6. Aatmanirbhar Bharat Rojgar Yojana (ABRY)

What it offers:

• Government contributes 12% of employer’s EPF for newly hired employees
• Encourages job creation and formalisation

Ideal for:

• Labour-intensive MSMEs
• Businesses expanding teams

7. Production Linked Incentive (PLI) Scheme

What it offers:

• Incentives for increased production and exports
• Encourages innovation and competitiveness

Current focus areas:

Electronics, textiles, pharmaceuticals, and green tech.

Why 2025 matters: New PLI variants are emerging in areas like renewable energy, EV components, and AI-enabled hardware.

8. Market Access Initiative (MAI) Scheme

What it offers:

Reimbursement for participating in global trade fairs, B2B events, and international marketing.

Benefits:

• Up to 75% of eligible costs covered
• Exposure to international buyers and markets

Ideal for: Export-ready MSMEs or businesses looking to go global.

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

What it offers:

• Loan + subsidy for new micro-enterprises
• Up to Rs. 50 lakh for manufacturing, Rs. 20 lakh for services

Subsidy range:

15% to 35% of project cost, higher for rural, SC/ST, and women entrepreneurs.

Ideal applicants:

• First-time entrepreneurs
• SHGs, co-operatives, NGOs

Highlight: Over 7.8 lakh units have been supported under PMEGP.

10. SFURTI (Scheme of Fund for Regeneration of Traditional Industries)

What it offers:

• Financial aid for artisan and traditional product clusters
• Infrastructure, marketing, branding support

Industries supported:

Khadi, coir, bamboo, pottery, leather, handloom.

Funding:

• Up to Rs. 5 crore for large clusters
• Up to Rs. 2.5 crore for smaller ones

11. Micro & Small Enterprises – Cluster Development Programme (MSE-CDP)

What it offers:

• Infrastructure and shared facilities for MSME clusters
• Focus on common testing centres, packaging units, training hubs

Subsidy:

• Up to 80% of project cost (max Rs. 30 crore)

Who can apply:

MSME groups, state bodies, SPVs.

How to Apply for These Schemes

Follow these steps to access benefits:

1. Get Udyam Registration or register via Udyam Assist
2. Gather required documents: PAN, Aadhaar, bank details, business plan
3. Match your business with the right scheme
4. Apply via official portals like msme.gov.inudyam, registration.gov.in and your bank or NBFC (for loans)
5. Track your application and maintain all records

Common Mistakes MSMEs Should Avoid

• Not registering under Udyam or UAP
• Missing eligibility details before applying
• Submitting incomplete documentation
• Assuming loans are guaranteed — banks still require proper financials
• Not following up post-application

Government schemes are more than paperwork — they’re powerful enablers of growth. Whether you’re a solo entrepreneur selling regional products or a growing manufacturer investing in automation, there’s a scheme to support your next big move. Use this guide as a starting point to explore, apply, and elevate your MSME journey in 2025.