Digital MSME Scheme: Details and How to Apply

Digital MSME Scheme promotes information and communication advancement in the sector. Digitally empowered MSMEs would perform better and at greater competitiveness with low cost and high efficiency. Accordingly, the government of India allotted a sum of Rs 85.705 crore auxiliary to the digital MSME scheme. Objective of Digital MSME scheme is to promote adoption of Information and Communication Technology tools (ICT) in their manufacturing and strategy to enhance global competitiveness.

Government urged the involvement of ICT and cloud computing in the MSME sector by employing the Digital MSME scheme. This scheme can be considered as a subset of Credit Linked Capital Subsidiary Scheme for Technology Upgradation (CLCS- TU).


The scheme aims to attain the following key goals:

  1. Encouraging the adaptation of ICT in MSME’s processes.
  2. Elevate the service, quality of the products, enterprises, and double the number of MSMEs.
  3. Cutting the cost in production and thus improve cost-effectiveness.
  4. Enhancing productivity and generate more revenue by Cloud computing.
  5. To reduce the cost of infrastructure, software programs and delivery time.
  6. Attaining a better support system by assuring connection with technological centres.

Digital MSME Scheme Subsidy Details under Different Categories

Significant Programmes Undertaken by the Scheme
  1. Awareness activities and workshops
  2. Could Computing- this service will be provided in three layers
  • With subsidy- Maximum of Rs 1 lakh for 2 years
  • Without subsidy- services from the cloud at very low cost
  • Market cost- No exceptions
  • Publicity, Branding, mobilization, Assorted expenses
  1. Development of e- platform, software apps, assistance through IT infrastructure
  2. Enterprise Facilitation centres for enabling digitization.
Working of the Digital MSME Scheme 

The National Monitoring and Implementation Unit at the MSME-DC office is in-charge of fabrication, application, and supervision of the scheme concerning Implementing Agencies (IAs). Project Monitoring and Advisory Committee (PMAC) to supervise groundwork, screening, tasks, division of interventions and related tasks. Further, the PMAC will be headed by MSME-DC. Telecommunications Consultants India Ltd (TCIL) to handle cloud computing under the scheme by providing a portal-Cloud Computing service providers. In addition, the services will be based on the Service Level Agreement (SLA). The scheme will follow the guidelines of the MSME Act 2006.

  1. Udyog Aadhar memorandum number
  2. MSME must pay for the services provided
  3. Selection will be based on first come first serve plan
  4. Financial stability, Product ability, export, the scope for advancement shall be considered.

In the case of including financial assistance, the scheme must be applied by clicking here. For which, the subsidiary will be compensated through Direct Benefit Transfer.

The NMIU or IA should be contacted for availing the benefits under the scheme.

Recent Amendments to Digital MSME Scheme Applicable from 2017

For Further Queries Contact

Principle Director, MSME-DC 14 (PPDC), Foundry Nagar, Agra-282006

MSME- development institutes (DC- MSME)


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