MSME Day 2024: Government Launches ₹277 Crore Scheme to Onboard MSMEs onto ONDC

In celebration of MSME Day 2024, the Indian government has announced a significant new initiative aimed at boosting the presence of micro and small enterprises (MSEs) on the Open Network for Digital Commerce (ONDC). The newly launched Trade Enablement & Marketing (TEAM) scheme, with a budget of ₹277.35 crore for the period of 2024-27, is designed to help MSEs overcome barriers to entering the digital marketplace. The Ministry of MSME expects that within three years, approximately 5 lakh MSEs will benefit from the scheme, with 50% of these being women-owned enterprises.

MSME Minister Jitan Ram Manjhi introduced the TEAM scheme, emphasizing its role in addressing the challenges faced by MSEs, such as limited digital access, financial constraints, and a lack of confidence in utilizing digital platforms. The scheme aims to provide comprehensive support to Udyam-registered MSEs, including assistance with catalog development, onboarding to ONDC, and account management.

To further aid MSEs, the TEAM scheme will offer subsidies for transportation and logistics as well as packaging, including innovative packaging designs to enhance their e-commerce capabilities.

In addition to the TEAM scheme, the government has launched the Yashasvini campaign, aimed specifically at supporting 1 lakh women entrepreneurs in smaller cities. The campaign focuses on skilling and capacity building to empower women-led MSEs. “The campaign is dedicated to women MSMEs. We will have increased campaigns in Tier 2 and Tier 3 cities, focusing on skilling and capacity building,” said Rajneesh, Additional Secretary and Development Commissioner, MSME Ministry. The goal is to provide targeted support to these entrepreneurs over the next year.

To raise awareness about the TEAM scheme and facilitate onboarding onto ONDC, the Ministry of MSME plans to conduct 150 e-commerce workshops in Tier 2 and Tier 3 cities as well as in MSME clusters. These workshops are part of a broader strategy to enhance the digital capabilities of small enterprises across the country.

In his launch address, Minister Manjhi outlined six foundational pillars for MSME-related initiatives: formalization and access to credit, increased market and e-commerce access, productivity enhancement through modern technology, skill development and digitalization, globalizing the khadi, village, and coir industries, and empowering women and artisans through enterprise creation.

The TEAM scheme is a part of the World Bank-supported RAMP (Raising and Accelerating MSME Performance) program and will be implemented by the National Small Industries Corporation (NSIC).

Key Highlights

  • The TEAM scheme aims to integrate 5 lakh MSEs into the ONDC over three years, with a special focus on women-owned enterprises.
  • The Yashasvini campaign will support 1 lakh women entrepreneurs in smaller cities, focusing on skilling and capacity building.
  • A series of 150 e-commerce workshops will be held to facilitate the digital onboarding of MSEs.

This initiative reflects the government’s commitment to strengthening the MSME sector and ensuring that even the smallest enterprises can compete in the digital economy.

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