DS

Design Scheme Under MSME Innovative Scheme

6.8/10

Design scheme will help MSMEs to avail advice on all aspects of design. It helps MSMEs realize and achieve their design-related objectives. This specialist advice will be provided by experienced designers for new product development as well as enhancing existing product portfolio.

Central Composite

States / UT: All India

Ministry / nodal: Ministry Of Micro, Small and Medium Enterprises

Scheme for: Infra

Scheme profile

DBT (direct benefit transfer): No

Categories: Business & Entrepreneurship

Sub-categories: Setting up / start-up / entrepreneurship

Target beneficiaries: University / Institution, Business Entity

Tags: Product Design, Product Development, Financial Support, Business & Entrepreneurship

Details

The "Design scheme" under the "MSME Innovative Scheme" implemented by the Ministry of Micro, Small & Medium Enterprises, will help MSMEs to avail advice on all aspects of design. It helps MSMEs realize and achieve their design-related objectives. This specialist advice will be provided by experienced designers for new product development as well as enhancing the existing product portfolio.
The Design scheme is divided in two major parts, viz., Design Projects and Design Awareness Programme.
Design Project: To facilitate MSMEs to develop new design strategies and or design-related products through interventions and consultancy.
Design Awareness Programme: The objective is to create general awareness and sensitization about the value and power of design for businesses through seminars, talks, workshops etc. The purpose of these activities is to sensitize MSMEs about the usage of design/innovation in various facets of their industry.

Benefits

  • Design Project:
  • Financial assistance under this activity will be utilised for engagement of design consultants for design interventions and expenses pertaining to development of prototype/product. For the design projects approved for any MSME, 75% (Micro) and 60% (Small & Medium) of the total project cost will be contributed by Government of India, up to a maximum of ₹40,000,00/- and the remaining project cost will be borne by MSMEs and deposited to the IA. The total project cost will be provided as a grant in 3 stages:
  • Stage 1: Strategy & Concept- 40% - Stage 2: Detail Design - 30% - Stage 3: Successful Completion of the prototype/product and Final Report submission - 30%. Student Project: This component supports design work of bona-fide students by providing financial assistance up to ₹2,50,000/-. For the student design projects approved for any MSME,75% of the total project cost will be contributed by Government of India, up to a maximum of ₹2,50,000/- and the remaining project cost will be borne by MSME and deposited to the IA

Design Project:

  • Financial assistance under this activity will be utilised for engagement of design consultants for design interventions and expenses pertaining to development of prototype/product. For the design projects approved for any MSME, 75% (Micro) and 60% (Small & Medium) of the total project cost will be contributed by Government of India, up to a maximum of ₹ 40,000,00/- and the remaining project cost will be borne by MSMEs and deposited to the IA.

The total project cost will be provided as a grant in 3 stages:

  • Stage 1: Strategy & Concept- 40% - Stage 2: Detail Design - 30% - Stage 3: Successful Completion of the prototype/product and Final Report submission - 30%.

Student Project:

This component supports design work of bona-fide students by providing financial assistance up to ₹ 2,50,000/-. For the student design projects approved for any MSME,75% of the total project cost will be contributed by Government of India, up to a maximum of ₹ 2,50,000/- and the remaining project cost will be borne by MSME and deposited to the IA.

Eligibility

  • The beneficiary unit(s) must typically be registered micro, small or medium enterprises.
  • Should have a valid Udyog Aadhaar Memorandum (UAM) or Udyam Registration certificate.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

6.8
/ 10
Public Benefit Score
Accessibility 5.0/10 Moderate
Rural usefulness 5.0/10 Moderate
Application complexity 3.0/10 Good
Financial impact 9.5/10 Good
Literacy barrier 5.0/10 Moderate
Women inclusivity 6.0/10 Moderate
Awareness 7.5/10 Good
Implementation reliability 7.0/10 Good
Bigger shape means a better fit for citizens
  • Accessibility5.0
  • Financial impact9.5
  • Rural utility5.0
  • Awareness7.5
  • Simplicity7.0
  • Inclusivity6.0

What problem does this scheme solve?

The Design Scheme under MSME Innovative Scheme provides valuable support for MSMEs in enhancing their design capabilities.

Key challenges addressed

  • Lack of design expertise in MSMEs
  • Need for financial assistance in design projects

Most beneficial for

  • Micro, small, and medium enterprises
  • Students involved in design projects

Likely challenges

  • Complex application process for semi-literate users
  • Digital dependency may limit access for some

Practical insights for citizens

The scheme may be beneficial but faces challenges in rural implementation.

Rural challenges

  • Limited internet access
  • Lack of awareness about the scheme

Digital challenges

  • Dependence on online application process

Implementation bottlenecks

  • Need for Udyam Registration may exclude some potential beneficiaries

Awareness challenges

  • Limited outreach in rural areas

Application analysis

Application mode
Online portal
Documents burden
Minimal, no specific documents required listed
Verification complexity
Moderate, requires Udyam Registration
Office dependency
Low, primarily online
DBT dependency
No direct DBT mentioned
CSC support
Not specified
Estimated citizen effort
Moderate, requires navigating online portal

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach Moderate

Benefit analysis

Benefit type
Composite
Benefit frequency
One-time financial assistance per project
Benefit practicality
High for eligible MSMEs, but may be complex for first-time applicants
Financial meaningfulness
Moderate, as it provides substantial support but requires MSMEs to co-fund
Long-term impact
Potentially significant if MSMEs successfully enhance their design capabilities

Plain-language guidance

This scheme helps small businesses get expert advice on design and financial support for new products. It is aimed at improving the design skills of MSMEs.

Who should apply
Registered micro, small, and medium enterprises with Udyam Registration.
Who may struggle
First-time applicants and those with limited digital skills.
Best application route
Apply directly through the online portal with your Udyam Registration number.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Online

Step 1: After opening the website https://innovative.msme.gov.in/ , Click on the "Design" option.
Step 2: On the next window, click on "Join Design Scheme".
Step 3: Enter the Udyam Registration Number along with the Registered Mobile Number.
Step 4: Click on "Validate" and then**** complete further steps to complete the application process.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What is the objectives of Design Scheme?

The objective of this component is to bring Indian manufacturing sector and Design expertise/ Design fraternity on to a common platform. It aims to provide expert advice and cost-effective solution on real time design problems for new product development, its continuous improvement and value addition in existing/new products.

What are the broad activities of MSME Innovative scheme?

The Design scheme is divided in two major parts, viz., Design Projects and Design Awareness Programme. a. Design Project - To facilitate MSMEs to develop new design strategies and or design related products through interventions and consultancy. b. Design Awareness Programme: The objective is to create general awareness and sensitization about the value and power of design for businesses through seminars, talks, workshops etc. The purpose of these activities is to sensitize MSMEs about the usage of design/innovation in various facets of their industry.

What type of financial assistance provided under the scheme?

Two types of financial assistance provided under the scheme: Design Project and Student Project.

Who can take the benefit of the scheme?

The beneficiary unit(s) must typically be a registered micro, small or medium enterprises as per the definition in MSMED and should have a valid UAM or Udyam Registration. The manufacturing MSMEs may be a profitable entity preferably in the last 1 year of its operations.

Who will implement the scheme throughout the country?

The implementing agencies for the Scheme, presently, are: Indian Institute of Science (IISc), Bengaluru, IITs (Kanpur, Indore, BHU, Roorkee, Ropar, Bhubaneshwar), NITs (Tiruchirappalli, Warangal, Silchar, Arunachal Pradesh, Jaipur, Allahabad, J&K, Bhopal, Nagpur, Calicut, Kurukshetra, Surathkal, Raipur).

How the proposals may be submitted ?

Under MSME Innovative scheme, a MSME Innovative portal has been developed. Now all the proposals/ application will uploaded on the Innovative portal i.e ( https://innovative.msme.gov.in ) under the respective scheme component of MSME Innovative scheme.

Who is the Apex Body of the scheme?

Project Monitoring and Advisory Committee (PMAC) is set-up at the office of AS&DC (MSME), who looks after the Planning, Screening, identification and such other function as deemed fit.

References

Guidelines
https://innovative.msme.gov.in/Home/AboutUs
FAQs
https://innovative.msme.gov.in/Documents/MSME_InnovativeFAQ.pdf

Apply

Apply now

Opens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.

Frequently asked questions

What is the purpose of Design Scheme Under MSME Innovative Scheme?
Design Scheme Under MSME Innovative Scheme is a government welfare initiative designed to support Infra, University / Institution, Business Entity through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Design Scheme Under MSME Innovative Scheme?
Eligibility for Design Scheme Under MSME Innovative Scheme may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Design Scheme Under MSME Innovative Scheme?
Benefits under Design Scheme Under MSME Innovative Scheme may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Design Scheme Under MSME Innovative Scheme?
Design Scheme Under MSME Innovative Scheme is managed by Ministry Of Micro, Small and Medium Enterprises and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Design Scheme Under MSME Innovative Scheme?
Yes, eligible applicants may be able to apply online for Design Scheme Under MSME Innovative Scheme through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Design Scheme Under MSME Innovative Scheme?
Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Design Scheme Under MSME Innovative Scheme?
Applications for Design Scheme Under MSME Innovative Scheme may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Design Scheme Under MSME Innovative Scheme?
Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is Design Scheme Under MSME Innovative Scheme a central government scheme?
Yes, Design Scheme Under MSME Innovative Scheme is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
Does Design Scheme Under MSME Innovative Scheme provide business loan or startup assistance?
Design Scheme Under MSME Innovative Scheme may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
Is collateral required under Design Scheme Under MSME Innovative Scheme?
Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
Can CSC centres help users apply for Design Scheme Under MSME Innovative Scheme?
Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Design Scheme Under MSME Innovative Scheme?
Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Can beneficiaries track application status for Design Scheme Under MSME Innovative Scheme?
Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Design Scheme Under MSME Innovative Scheme in All India?
Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Design Scheme Under MSME Innovative Scheme applications?
Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.