Central · Technology Upgradation
MSME Innovative Scheme – Design Component
- Maximum benefit
- 75% (micro) or 60% (small and medium) of a design project, up to ₹40 lakh
- Who can apply
- Micro, Small, Medium enterprises
- Status
- Open; confirm the status before you apply
Is MSME Design Scheme open? Key facts at a glance
MSME Design Scheme (Central): 75% (micro) or 60% (small and medium) of a design project, up to ₹40 lakh.
Last verified: 20 Oct 2026. How we check our information
| Status | Open. Confirm the status before you apply (see the note on this page). |
|---|---|
| Level | Central government scheme |
| Type of benefit | Grant for Design Projects |
| Maximum benefit | 75% (micro) or 60% (small and medium) of a design project, up to ₹40 lakh |
| Project cost range | Design project cost; Government share capped at ₹40 lakh |
| Who can apply | Micro, Small, Medium enterprises (Manufacturing) |
| Implementing agency | Office of the Development Commissioner (MSME), through Implementing Agencies |
| Where to apply | MSME Innovative (Design) portal |
| Official notification | Read the notification (PDF) · notified 10 March 2022 |
| Last verified | 20 Oct 2026 · How we check |
What is MSME Design Scheme?
The Design component of the MSME Innovative Scheme pays for professional design work on new products. An MSME submits a design project through a nominated Implementing Agency.
If the Ministry's committee approves it, the Government meets 75% of the project cost for a micro enterprise and 60% for small and medium enterprises, up to ₹40 lakh, and the unit deposits the rest with the agency. Student design projects for MSMEs get 75%, up to ₹2.5 lakh.
Official notification (PDF) · notified 10 March 2022
What are the key benefits of MSME Design Scheme?
- Design project: the Government pays 75% (micro) or 60% (small and medium) of the cost, up to ₹40 lakh, released in three stages (40%, 30%, 30%) (Guidelines §4.2 B(i)).
- Student design project: 75% of the cost, up to ₹2.5 lakh, in two stages (§4.2 B(ii)).
What could a unit get under MSME Design Scheme?
The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.
Up to the scheme’s limits: 75% (micro) or 60% (small and medium) of a design project, up to ₹40 lakh
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Guidelines of MSME Innovative Scheme (2022), §4.2 Design component; O/o DC (MSME) OM No. 5(9)/2021-22/PMS/Misc, 2 April 2026.
Who can apply for MSME Design Scheme?
- Micro, small or medium enterprise with Udyam (or UAM) Registration.
- Manufacturing MSMEs should preferably have been profitable in at least one of the last three years; the committee can relax this.
- Must engage a qualified industrial designer with relevant experience.
Eligible business types
MSME categories covered
Eligible industries
How do I apply for MSME Design Scheme?
- Submit the design project on the MSME Innovative (Design) portal through a nominated Implementing Agency.
- The agency's Project Assessment Panel reviews it and the Ministry's PMAC approves it; then deposit your share with the agency.
Apply at: MSME Innovative (Design) portal
Which documents are needed for MSME Design Scheme?
- Udyam Registration
- Design project proposal with the design consultant
- Financial statements for the last three years
Why are MSME Design Scheme applications rejected?
- Designer is not a qualified industrial designer
- Unit not profitable in any of the last three years (the committee can relax this)
- MSME's share not deposited with the Implementing Agency
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about MSME Design Scheme
- Is MSME Design Scheme open?
- It is listed as open, but confirm the status before you apply: The MSME Innovative Scheme is part of MSME Champions, approved for 2021-22 to 2025-26 (to 31 March 2026). A Ministry of MSME memo of 2 April 2026 cites temporary continuation of schemes beyond 31 March 2026, up to 30 September 2026 or until the next scheme is approved, whichever is earlier; when we checked on 20 October 2026 we found no extension beyond that. The MSME Innovative (Design) portal is still active, so confirm there before you commit to a design project. Status last verified: 20 Oct 2026.
- Who can apply for MSME Design Scheme?
- Micro, Small, Medium enterprises (Manufacturing).
- What is the maximum benefit under MSME Design Scheme?
- 75% (micro) or 60% (small and medium) of a design project, up to ₹40 lakh.
- How do I apply for MSME Design Scheme?
- 1. Submit the design project on the MSME Innovative (Design) portal through a nominated Implementing Agency. 2. The agency's Project Assessment Panel reviews it and the Ministry's PMAC approves it; then deposit your share with the agency. Apply at: MSME Innovative (Design) portal.
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