MSME Design Scheme
Design Scheme under MSME Innovative (Incubation, Design & IPR)
Non-refundable grant of up to ₹40 Lakh for MSMEs developing innovative, sustainable physical products with professional design support.
- Grant
- Up to ₹40 Lakh
- GoI share
- 75% micro, 60% small & medium
- Project type
- Physical products only
- Run by
- Ministry of MSME
About MSME Design Scheme
The Design Scheme is one of three components of the MSME Innovative programme. It funds design projects that take a new or existing physical product through professional design, prototyping and engineering so that it becomes more competitive, sustainable and market ready.
The Government of India contributes 75% of the approved project cost for micro enterprises and 60% for small and medium enterprises, up to ₹40 Lakh per project. The MSME bears the balance. Projects are executed with an approved design institute or expert and the grant is released in milestones.
Key benefits
- Non-refundable grant of up to ₹40 Lakh per design project
- Government funds 75% of the project cost for micro units and 60% for small and medium units
- Access to empanelled design institutes and professional designers
- Covers product design, prototyping, tooling inputs and testing
- Priority sectors include agriculture, electrical, mechanical, electronics and toys
Who is eligible
- MSME with a valid Udyam registration
- Entity at least 3 years old with at least 1 profitable year out of the last 3
- Project must be for a physical product, not a service or software
- Innovative or sustainable product with clear commercial potential
- Ability to fund the balance project cost
Documents required
- Udyam registration certificate
- Audited financials and ITR for the last 3 years
- Design project proposal with objectives, timeline and cost estimate
- Details of the design institute or consultant engaged
- Incorporation, PAN and GST documents of the enterprise
How Vertex helps with MSME Design Scheme
- 1Eligibility checkWe review your business profile against the scheme rules and related state incentives.
- 2Documents & project reportWe prepare the DPR, financials and registrations such as Udyam, GST and FSSAI.
- 3Application & lender liaisonWe file the application and coordinate with banks, NBFCs and agencies.
- 4Sanction & follow-upWe follow up until sanction, disbursement and any subsidy release.
Frequently asked questions
No. It is a non-refundable grant released against project milestones. Only the MSME's own share of the project cost has to be funded by the business.
No. The Design Scheme supports physical product projects only. Service and software businesses can look at other MSME Innovative components or startup schemes.
Scheme limits, subsidy rates and timelines are indicative and subject to the latest government guidelines and lender policies. Vertex Certification is a private consultancy and is not affiliated with any government body.
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