MSME TEAM Scheme

There is a need to include more and more MSMEs in the e commerce development. With the objective of promoting digitalization of trade and commerce among MSMEs, the Ministry of MSME has designed a new initiative, MSME TEAM (Trade Enablement and Marketing) under the World Bank supported "Raising and Accelerating MSME Productivity (RAMP)" Program being implemented by the Ministry of MSME.
The initiative will empower MSMEs with digital tools and guidance to effectively utilize the e-commerce marketplace. One of the primary objectives of the TEAM Initiative is to support MSMEs to help them access different markets by integrating them avenues for online commerce. This will enable the MSMEs in widening their customer base and increase their income. This will also strengthen the trustworthiness and credibility of MSMEs by establishing their digital presence and creating transaction history.
Objectives:
Expanding Market Reach for MSMEs: Enable MSMEs to present their products and services to a wider audience, unlocking new market prospects beyond their conventional local customer base.
Reduction in Cost of Doing Business: MSMEs will have access to significantly higher number of buyers, suppliers and service providers which will help bring down the cost of doing business. The commission for online commerce would be lower than what is charged by traditional e-Commerce platforms. This will allow even the smallest of units to conduct online transactions.
Leveraging Digital Public Infrastructure through ONDC: Ease the burden on MSMEs to invest in developing their own digital setup or e-commerce platforms. By capitalising on the ONDC ecosystem, MSMEs can access a readily available digital framework, complete with online storefronts, payment gateways, and logistical support.
Digitalization of MSMEs thereby enhancing their competitiveness: Embracing ecommerce can drive the digitization of MSMEs' operations, enabling them to streamline processes, optimise supply chains, and improve overall efficiency. This enhanced competitiveness can help MSMEs thrive in a rapidly evolving business landscape.
Enabling and making the MSMEs export ready: By participating in e-commerce, MSMEs can expand their reach to international markets, making them more export ready. The digital platform provides access to a global customer base, potentially boosting export opportunities and contributing to the growth of the local economy.
Localised e-commerce Access: Offer MSMEs access to e-commerce platforms in their native languages, to support the Government of India's "Local for Global" initiative.
Convergence with other Government initiatives: Converge with schemes and initiatives such as PM Vishwakarma, Udyam database, Trade Receivables electronic Discounting System, Online Dispute Resolution, Credit Support programmes, Interest Subvention programmes, mSeva, Digilocker, Digital MSME scheme, etc that align with the objectives of the MSME TEAM initiative.
Formalisation of MSMEs: The integration of MSMEs into the digital commerce ecosystem leads to formalisation of their operations, ensuring compliance with regulations and enhancing their legitimacy in the market. This can improve their access to financial services and government support.
Enhancing Credibility and Financial Standing: Strengthen the trustworthiness and credibility of MSMEs by establishing their digital presence and transaction history.
Nationwide Outreach and Education: Engage with MSMEs across the nation through awareness campaigns and workshops, educating them about the advantages and practicality of embracing e-commerce platforms.
Key Features:
Initiative outlay: Rs. 277.35 Cr
The Scheme duration is 3 years (FY 2024-2025 to FY 2026-2027)
National Small Industries Corporation (NSIC) will be the Implementing Agency
Target beneficiaries: 5 lakh MSEs (50% will be women owned MSEs)
Sunset clause: All the assistance sanctioned after the date of notification of the initiative by Ministry of MSME would be in operation till such time the sanctioned corpus is fully committed, or the tenure of the Initiative is over, whichever is earlier. The Implementing Agency shall ensure that there is no committed liability beyond the period of the Initiative.
Eligibility:
All the MSEs certified under Udyam Registration (both in manufacturing and service sector) will be eligible for benefits under the Scheme
Also, the MSE should not be onboarded on ONDC compliant SNP as on the date of operationalisation of the scheme.
MSE Units must submit relevant details for claiming benefits under the scheme.
MSE unit should not have taken similar assistance from any other Central / State government schemes / programmes.
Among other details, the details in respect of product category, archetype (B2B/B2C), and whether already marketing through ecommerce platforms should necessarily be captured from the MSEs during registration for the scheme. MSEs may provide consent for sharing of details with ONDC, NPs, and Implementing Agency.