Government launches ₹277 Crore scheme to help MSMEs II VYGR

In recognition of MSME Day 2024 on June 27, MSME Minister Jitan Ram Manjhi launched the Trade Enablement & Marketing (TEAM) program, which will be worth Rs 277.35 crore over three years (2024–2027). This aims at boosting e-commerce access for MSEs (micro and small enterprises) through the government’s open e-commerce network Open Network for Digital Commerce (ONDC). The plan will be implemented by NSIC (National Small Industries Corporation) and was introduced as part of the RAMP program, which is backed by the World Bank.

According to the ministry, the initiative is expected to help 5,000 MSEs in three years, 50% of which will be women-owned businesses.

The details of the initiative

Considering the hurdles that MSEs encounter when attempting to conduct business online, including restricted digital access, limited funds, and a lack of trust in using digital platforms, the TEAM scheme seeks to assist Udyam-registered MSEs with catalogue development, ONDC onboarding, and account management support.
Additionally, MSEs will receive subsidies under the system for logistics, transportation as well as packaging designs.
Furthermore, the ministry announced that it would host 150 e-commerce workshops in tier 2, 3 cities, and MSME Clusters to raise awareness about the program among MSEs and onboarding onto ONDC.

While addressing the launch of the scheme, MSME Minister Manjhi mentioned that the MSME-related initiatives are built upon six pillars identified by the ministry:

Formalization and credit availability;
Enhanced market access and e-commerce adoption;
Productivity gains through modern technology;
Improved skill levels and digitalization in the service sector;
Assistance to the khadi, village, and coir industries to help them become globally recognized; and sixth, empowering women and artisans through the creation of new enterprises.

The minister also introduced the Yashasvini program, which aims to provide skill development and capacity-building assistance to one lakh women entrepreneurs in smaller cities.

Inputs: Agencies

Image Source: Multiple agencies