Subsidy SetuMSME subsidy and compliance

Central · Technology Upgradation

MSME Innovative Scheme – Design Component

Open · check status
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

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.
StatusOpen. Confirm the status before you apply (see the note on this page).
LevelCentral government scheme
Type of benefitGrant for Design Projects
Maximum benefit75% (micro) or 60% (small and medium) of a design project, up to ₹40 lakh
Project cost rangeDesign project cost; Government share capped at ₹40 lakh
Who can applyMicro, Small, Medium enterprises (Manufacturing)
Implementing agencyOffice of the Development Commissioner (MSME), through Implementing Agencies
Where to applyMSME Innovative (Design) portal
Official notificationRead the notification (PDF) · notified 10 March 2022
Last verified20 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

Manufacturing

MSME categories covered

MicroSmallMedium

Eligible industries

🏭 Manufacturing🍽️ Food Processing🧵 Textiles & Garments🏥 Healthcare & Pharma🌾 Agri & Livestock Processing⚡ Renewable Energy

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

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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