Executive Summary:
This document addresses a parliamentary question regarding support for small-scale manufacturers in Telangana. It outlines existing schemes providing subsidized machinery, export promotion programs for handicraft MSMEs, and initiatives for digital marketing training. The schemes mentioned are active as of August 7, 2025.
Key Points / Main Content:
Subsidized Machinery:
* National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme: Provides a 25% capital subsidy (up to Rs. 25 lakh) to SC/ST-owned MSEs for plant and machinery/equipment procurement.
* Prime Minister's Employment Generation Programme (PMEGP): Offers Margin Money (MM) subsidy for new non-farm enterprises. Subsidy varies by category (General or Special) and location (rural or urban), with project cost limits of Rs. 50 lakh for manufacturing and Rs. 20 lakh for services.
Export Promotion for Handicraft MSMEs:
* International Cooperation (IC) Scheme: Facilitates MSME participation in international fairs/exhibitions.
* IC Scheme also offers: Capacity Building for First Time Exporters, facilitating MSEs for registration with Export Promotion Councils, Export Insurance Premium and fees towards Testing Quality Certification for products and services
* Ministry of Textiles: Organizes international marketing events under the National Handicrafts Development Programme (NHDP) for handicrafts and carpets, providing financial assistance for participation.
Digital Marketing Training:
* MSME Trade Enablement and Marketing (MSME TEAM) Initiative: Focuses on onboarding MSMEs onto the ONDC platform and supporting their e-commerce journey.
* Procurement and Marketing Support (PMS) Scheme: Provides financial assistance for selling through e-commerce.
* MSME Global Mart: A B2B e-commerce platform developed by the National Small Industries Corporation (NSIC).
* ekhadiindia.com: An e-commerce portal for B2C sales managed by the Khadi and Village Industries Commission (KVIC).
* Government e-Marketing Place (GeM): Organizes awareness programs on digital literacy and provides handholding support to MSMEs.
Impact Analysis:
Telangana Small-Scale Manufacturers (including Handicraft Sector):
* Impact: Potential access to subsidized machinery, export promotion opportunities, and digital marketing training, enhancing competitiveness and market reach.
* Action Required: Explore and apply for relevant schemes (NSSH, PMEGP, IC Scheme, NHDP, MSME TEAM, PMS, MSME Global Mart, ekhadiindia.com, GeM) based on eligibility and business needs.
SC/ST MSEs:
* Impact: Opportunity to benefit from the NSSH Scheme's capital subsidy for machinery procurement.
* Action Required: Review eligibility criteria and apply for the NSSH Scheme to upgrade equipment and expand operations.
First-Time Exporters:
* Impact: Opportunity to benefit from the IC Scheme to facilitate membership with Export Promotion Councils, Export Insurance Premium and fees towards Testing Quality Certification.
* Action Required: Review eligibility criteria and apply for the IC Scheme to facilitate membership with Export Promotion Councils, Export Insurance Premium and fees towards Testing Quality Certification.
MSME Entrepreneurs:
* Impact: Access to digital literacy and e-commerce training, enabling online marketing and sales.
* Action Required: Participate in training programs offered through the MSME TEAM Initiative and GeM, and leverage available e-commerce platforms.
Key Entities Referenced
Telangana: A state in India, specifically mentioned in relation to small-scale manufacturers and MSMEs.
National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme: A scheme implemented by the Ministry of MSME to promote entrepreneurship amongst SCs/STs.
Public Procurement Policy for Micro and Small Enterprises: A Government of India policy mandating procurement from SC/ST MSEs.
Prime Ministers Employment Generation Programme (PMEGP): A program providing Margin Money (MM) Subsidy for setting up new enterprises.
Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE): A scheme implemented by the Ministry of MSME for development and promotion of MSMEs.
Micro and Small Enterprises Cluster Development Programme (MSECDP): A scheme implemented by the Ministry of MSME for development and promotion of MSMEs.
Raising and Accelerating MSME Performance (RAMP): A scheme implemented by the Ministry of MSME for development and promotion of MSMEs.
MSME Trade Enablement and Marketing (MSME TEAM) initiative: An initiative focusing on onboarding MSMEs onto the ONDC platform and supporting their e-commerce journey.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 3080
TO BE ANSWERED ON: 07.08.2025
SMALL-SCALE MANUFACTURERS
3080. DR. KADIYAM KAVYA:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government has plans to provide subsidized machinery to Telangana’s small-scale
manufacturers;
(b) the details of export promotion schemes for Telangana’s MSMEs in the handicraft sector; and
(c) the steps taken to facilitate digital marketing training for Telangana’s MSME entrepreneurs?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): The Ministry of Micro, Small and Medium Enterprises (MSME) has been implementing
National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme since October, 2016 to promote
entrepreneurship amongst the SCs/STs and to fulfill the mandated 4% of procurement from SC/ST
MSEs under the Public Procurement Policy for Micro and Small Enterprises, Government of India.
The scheme is being implemented throughout the country including Telangana. Under the ‘Special
Credit Linked Capital Subsidy Scheme’ component of NSSH Scheme, 25% capital subsidy is provided
to SC-ST owned MSEs for procurement of plant and machinery/equipment (i.e. subsidy cap of Rs. 25
lakh) through institutional credit.
Further, Margin Money (MM) Subsidy is provided under the Prime Minister’s Employment
Generation Programme (PMEGP) for setting up of new enterprises in the non-farm sector. The MM
subsidy for General Category beneficiary is 25% of the project cost in rural areas and 15% in urban
areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes,
OBCs, minorities, women, ex-servicemen, physically handicapped, transgenders, beneficiaries
belonging to North Eastern Region, hill and border areas, and aspirational districts, the MM subsidy is
35% in rural areas and 25% in urban areas. The maximum cost of project is Rs. 50 lakh in the
manufacturing sector and Rs. 20 lakh in the service sector.
In addition, Ministry of MSME implements various schemes for development and promotion
of MSMEs which include Credit Guarantee Scheme for Micro and Small Enterprises(CGSMSE),
Micro and Small Enterprises - Cluster Development Programme (MSE-CDP), Entrepreneurship &
Skill Development Programmeand Raising and Accelerating MSME Performance (RAMP),
International Cooperation Scheme, Procurement and Marketing Support Scheme, MSME Champions
Scheme, etc.: 2 :
(b): To enhance the export of MSMEs in the country including Telangana’s MSMEs in the
handicraft sector, the Ministry of MSME under the International Cooperation (IC) Scheme facilitates
MSMEs to participate in international fairs/exhibitions which give exposure to global market
ecosystem. The IC Scheme also has the Capacity Building for First Time Exporters component which
facilitates MSEs for registration with various Export Promotion Councils for membership, Export
Insurance Premium and fees towards Testing & Quality Certification for products and services. Other
schemes/programmes of this Ministry such as MSME-Sustainable (ZED) Certification Scheme,
MSME-Competitive (LEAN) Scheme and MSME-Innovative Scheme (Incubation, Design &
Intellectual Property Rights) provide holistic support to enable MSMEs to become globally
competitive.
Further, with a view to promote the export of handicrafts and carpets, the Ministry of Textiles
is organising International Marketing Events both in India and abroad under the Marketing and Service
Support (MSS) component of the National Handicrafts Development Programme (NHDP). Under this,
financial assistance is extended to eligible organizations for organizing and participating in
international fairs, thematic exhibitions, craft festivals of India, stand-alone shows, and awareness
campaigns abroad. Additionally, awardee artisans and exporters of handicrafts are nominated to
participate in these international marketing events.
(c): Ministry of MSMEs has taken several initiatives to digitally empower MSMEs for online
marketing and e-commerce integration. These include MSME Trade Enablement and Marketing
(MSME TEAM) initiative which focuses on onboarding MSMEs onto the ONDC platform and
supporting in their e commerce journey; Procurement and Marketing Support (PMS) Scheme, which
provides financial assistance for selling through e-commerce; MSME Global Mart – a B2B e-
commerce platform for MSMEs developed by the National Small Industries Corporation to provide
access to global trade leads, tenders and other relevant information; and ekhadiindia.com, an e-
commerce portal for B2C sales, offering global reach and interactive features for khadi and village
industries, developed and managed by the Khadi and Village Industries Commission.
Training on digital literacy and e-commerce operations is conducted in the MSME TEAM Initiative at
various places including Telangana. Government e-Marketing Place also organizes awareness
programmes on digital literacy and provides hand-holding support to MSMEs.
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