The MSME Tech Upgradation Scheme: What Does it Mean?
What’s the News:
On November 19, Union Minister Narayan Rane launched a Special Credit Linked Capital Subsidy Scheme (SCLCSS). This scheme will help MSMEs working in the services sector. With this scheme, MSMEs can meet their technology requirements, and invest in modern equipment, digital commerce, or updated methods of production. Through this scheme, MSMEs can get a capital subsidy of 15% on institutional finance, up to Rs. 1 crore.
What does this mean for MSMEs?
- Using this scheme, MSMEs can scale up and use better technology. The credit provided by this scheme can be utilized by the MSMEs for new innovation. This will help them become competitive in global markets.
- This scheme was originally suspended by the government in August 2021, and relaunched in now in November. This tells us that the Government considers the technological progress of Indian MSMEs to be the need of the hour.
How can MSMEs use schemes like these to grow?
The ultimate goal of any MSME should be to self-sustain, grow and scale. This means that MSMEs should look to new ways to expand beyond the local, take charge of new opportunities provided by technology, and adapt to the needs of the market.
- MSMEs should innovate collectively. By networking, pooling resources and working together, MSMEs can achieve greater success. Collaborating inside or outside associations will help MSMEs become a larger force, capable of faster changes or adaptations.
- MSMEs should digitize smartly. Choosing one-stop solution vendors to provide all their online services and manage their online presence will help MSMEs earn better revenue, grow beyond borders, and improve their customer base.
- MSMEs should innovate. By strategically adopting new technology, tapping into niches, or utilizing new methods of credit financing, payments, or delivery, MSMEs can rise above competition to grow quickly. New technology like digital wallets, digital banking receipts, e-Vouchers etc. are still underutilized by MSMEs.
How MarketCentral can help:
MarketCentral is a one-stop solution for MSMEs looking for digital commerce. At MarketCentral, we help MSMEs network and collaborate with each other, as well as put them in touch with associations. Helping MSMEs upgrade to a better online presence, and increasing technological adoption, is the core focus of MarketCentral.
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