Indian Economy News

Ministry of MSME is implementing Micro and Small Enterprises Cluster Development Programme (MSE-CDP) across the country

The Ministry of Micro, Small, and Medium Enterprises (MSME) is implementing the Micro and Small Enterprises Cluster Development Programme (MSE-CDP) across India to strengthen productivity, competitiveness, and overall growth of micro and small enterprises through a cluster-based approach. The scheme provides financial assistance for establishing Common Facility Centres (CFCs) and upgrading infrastructure in industrial areas, enabling enterprises to access shared technology, skill development, and quality improvement resources. A total of 242 CFCs have been approved nationwide, along with 513 clusters under the Scheme for Fund for Regeneration of Traditional Industries (SFURTI) since 2015-16, reflecting the government’s focus on decentralised industrial development.

The initiative has significantly enhanced the sustainability and market access of MSMEs by addressing key challenges such as technology gaps and limited scale. Over the past five years, financial assistance of Rs. 438.94 crore (US$ 46.82 million) has been provided for CFC projects, strengthening cluster infrastructure. In addition, the Credit Guarantee Scheme for Micro and Small Enterprises has expanded its scope, with the guarantee ceiling increased to Rs. 10 crore (US$ 1.07 million) from April 2026, improving credit availability. Special provisions also support informal micro enterprises, offering guaranteed credit up to Rs. 20 lakh (US$ 21,330) with 85% coverage. Further, recognition of Udyam Assist Platform certificates as equivalent to Udyam Registration has enabled informal enterprises to access priority sector lending benefits. Together, these measures are driving inclusive growth, strengthening MSME resilience, and boosting India’s industrial ecosystem.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.