NITI Aayog suggest convergence of schemes to streamline MSME efficiency, improve outreach

New Delhi [India]: NITI Aayog on Thursday released a comprehensive report titled "Achieving Efficiencies in MSME Sector through Convergence of Schemes," outlining a strategic framework to streamline micro, small, and medium enterprise programs and improve outreach. The report presents a blueprint to unlock greater efficiency by evaluating existing government initiatives and proposing a roadmap to unify fragmented support systems.

Launched by Arvind Virmani, Member, NITI Aayog, and B. V. R. Subrahmanyam, Chief Executive Officer, NITI Aayog, the report identifies best practices across central and state levels to improve the delivery of financial, skill, and marketing support.

The report emphasizes that while the Ministry of MSME currently administers 18 schemes spanning credit assistance, skill development, and infrastructure, the sector faces challenges from overlapping objectives.

It notes that "overlapping objectives and fragmented implementation across ministries often lead to duplication, inefficiencies, and limited outreach." By addressing these gaps, the government aims to ensure better translation of resources into tangible outcomes while reducing the confusion often faced by potential beneficiaries.

To achieve these goals, the report recommends a two-pronged approach consisting of information and process convergence. Information convergence focuses on integrating government-generated data to enable informed decision-making and strengthen governance outcomes. Meanwhile, process convergence aims to unify schemes to reduce redundancies. This involves merging similar programs and fostering collaboration across ministries to create a cohesive support ecosystem for the sector.

A central recommendation includes the creation of an AI-powered centralized digital platform. This portal would integrate MSME schemes, compliance, finance, and market intelligence. According to the report, such a platform would feature "information, process, compliance, and market research modules, supported by AI chatbots, dashboards, and mobile access for real-time support." (ANI)

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