MSME Innovative Scheme: Design Component — Frequently Asked Questions
Answers to the questions founders most often ask about MSME Innovative Scheme: Design Component — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
What is the MSME Innovative Scheme: Design Component?
This is a central government initiative by the Ministry of MSME, aimed at helping Indian manufacturing Micro, Small, and Medium Enterprises (MSMEs) integrate professional design expertise to foster product innovation, enhance competitiveness, and improve product quality and functionality.
What is the maximum financial support available under this scheme?
Eligible manufacturing MSMEs can receive a grant of up to ₹40 Lakhs per design project.
What percentage of the design project cost does the government contribute?
The Government of India contributes 75% of the design project cost for micro-enterprises and 60% for small and medium enterprises.
How is the funding disbursed to eligible MSMEs?
The funding is disbursed in three milestone-based phases: 40% is released during the initial Strategy & Concept phase, 30% during the Detail Design phase, and the final 30% upon the completion of the Implementation phase.
Which types of enterprises are eligible to apply for this scheme?
The scheme is open to Registered MSMEs with a valid Udyam Registration Certificate that primarily operate within the manufacturing sector. This includes private limited companies, LLPs, partnerships, and proprietorships.
Are there specific criteria regarding the age and financial performance of an MSME?
Yes, applicant MSMEs must have been incorporated for a minimum of 3 years and must have demonstrated profitability in at least one of their last three financial years.
What kind of design projects are eligible under the Design Component scheme?
The scheme supports projects focused on new product development or the enhancement of existing product lines. This includes various design activities such as product design, user experience (UX) design, prototyping design, and packaging design.
Which industry sectors are supported by this scheme?
The scheme broadly covers manufacturing industries, including specific domains like Agriculture, Healthcare Devices, Power & IT, and general manufacturing. It also extends to Service and Miscellaneous categories.
Is Udyam registration a mandatory requirement for applicants?
Yes, it is fundamental that the applicant is a Registered MSME with a valid Udyam Registration Certificate to be considered eligible for this scheme.
Does the MSME Innovative Scheme: Design Component require an equity stake from the applicant?
No, this program is structured as a grant, meaning it provides non-dilutive funding and does not require the MSME to give up any equity stake.
How can an eligible MSME apply for this scheme?
Eligible MSMEs can submit detailed proposals through the official MSME Innovative portal (https://innovative.msme.gov.in/Home/Index). The application process typically involves articulating the design challenge, proposed solution, methodology, anticipated outcomes, and budget.
What non-monetary benefits does the scheme offer?
Beyond financial support, the scheme connects MSMEs with professional design agencies empanelled under the program, offering expert guidance, access to cutting-edge tools, and specialized resources crucial for product development. Localized support from implementing agencies like SIIC IIT Kanpur is also available.
How much funding does MSME Innovative Scheme: Design Component provide?
MSME Innovative Scheme: Design Component provides ₹40L (up to) as grant. Always confirm the exact amount and any conditions on the official site, as figures can change between cohorts.
What is the application deadline for MSME Innovative Scheme: Design Component?
MSME Innovative Scheme: Design Component runs on a rolling basis with no fixed deadline — applications are accepted on an ongoing basis. Check the official site to confirm the window is currently open.
Is DPIIT recognition required for MSME Innovative Scheme: Design Component?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for MSME Innovative Scheme: Design Component, though having it can strengthen your application and unlock other benefits.
Who offers MSME Innovative Scheme: Design Component?
MSME Innovative Scheme: Design Component is offered by Ministry of MSME, a government body. It is provided as non-dilutive funding.
How do I apply for MSME Innovative Scheme: Design Component?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.