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Design Scheme under MSME Innovative Scheme

Improve product competitiveness through structured design support without straining working capital. The scheme focuses on usability, differentiation, and market fit.

Last updated on: January 17, 2026

What Is the MSME Design Scheme?

The Design scheme under the MSME Innovative Scheme supports micro, small and medium enterprises in improving product design, packaging, and process aesthetics. You use this scheme to access professional design expertise, reduce product development risks, and improve market acceptance. The MSME Design scheme focuses on building competitiveness through structured design interventions rather than ad-hoc changes. It targets practical outcomes like better functionality, improved appearance, and stronger user experience, without pushing enterprises into long-term financial exposure.

Objectives of the Design Scheme

The Design scheme is outcome-driven. Its objectives are clear and measurable:

  • Encourage adoption of design as a business tool

  • Improve product quality, usability, and visual appeal

  • Reduce time-to-market through guided design processes

  • Support cost optimisation via efficient design choices

  • Strengthen branding and market positioning for MSMEs
     

These objectives ensure the MSME Design Scheme stays commercially relevant and aligned with market needs.

Features & Benefits of the Design Scheme

The MSME Design scheme offers structured assistance rather than one-time grants. Key features and benefits include:

  • Professional design support - You get access to design experts and institutions recognised by the government, which reduces trial-and-error costs
  • Financial assistance for design activities - Support covers concept development, product design, and packaging improvements, subject to scheme guidelines
  • Focus on market readiness - The Design scheme prioritises designs that improve acceptance in domestic and export markets
  • Reduced business risk - Guided design processes lower the chance of failed launches
  • Scalability support - Well-designed products are easier to standardise and scale
     

Together, these benefits help you move from idea to market with clarity. When timelines are tight, short-term funding such as an instant business loan can support execution without delaying design-led improvements.

Eligibility Criteria for the Design Scheme

Before applying for the Design scheme, ensure you meet the following conditions:

  • You must be a registered MSME under applicable government norms

  • The enterprise should be engaged in manufacturing or service activities where design intervention is relevant

  • You should propose a clear design problem and expected business outcome

  • Prior compliance with MSME-related regulations is required
     

Eligibility rules keep the MSME Design scheme focused on serious, growth-oriented enterprises. Enterprises meeting these criteria often combine scheme-led design support with structured funding such as an MSME loan to support execution at scale.

Documents Required for the Design Scheme

You need basic business and compliance documents. Common requirements include:

  • MSME registration details

  • Business incorporation documents

  • Proposal outlining the design intervention

  • Financial statements as specified in the guidelines

  • Any additional declarations required by the implementing agency
     

Document lists may change. Always verify with official notifications before submission.

How to Apply for the Design Scheme?

Applying for the design scheme involves a defined process. You should follow official guidance closely.

Steps to apply:

  1. Review the scheme details and eligibility criteria

  2. Prepare a clear design proposal with objectives and scope

  3. Submit the application through the designated government portal

  4. Track application status and respond to clarification requests
     

For authoritative instructions, refer to the official scheme page:

You may also consult the Ministry of MSME updates for procedural changes:

Similar Schemes Offered by the Government

The government runs multiple MSME support schemes alongside the MSME Design scheme. These schemes address finance, market access, and infrastructure.

Scheme Name

Bank Loan Processing Fee Reimbursement Scheme

Bank Guarantee Charges Reimbursement Scheme

Consortia & Tender Marketing Scheme

Credit Enhancement Guarantee Scheme For The Scheduled Castes

Credit-Based Schemes For SC – Term Loan

Advance Authorisation (AA) Scheme

Group Workshed Scheme

Ambedkar Social Innovation and Incubation Mission (ASIIM)


Each scheme targets a specific growth bottleneck. You should assess alignment before applying.

Conclusion

The Design scheme under the MSME Innovative Scheme helps you convert functional ideas into market-ready products. It supports competitiveness without distorting your cash flow. When design upgrades require parallel funding for operations, structured options like a business loan can complement non-financial support. On Bajaj Markets, you can explore financing routes aligned with MSME needs, while keeping your growth plans structured and controlled.

Conclusion

PMKVY continues to play a crucial role in expanding India’s skilled workforce by offering structured training, industry-aligned curricula and clear pathways for growth. As more candidates gain practical capabilities across sectors, the scheme supports both individual progress and broader economic development. For those aiming to convert their skills into enterprise opportunities, accessing additional support such as an online business loan could further accelerate their journey.

Frequently Asked Questions

What are the broad activities of the MSME Innovative scheme?

The scheme covers design intervention, incubation, and innovation support. It aims to improve product quality, process efficiency, and market readiness.

Financial support is provided for approved design-related activities as per scheme guidelines, subject to conditions and limits notified by authorities.

The Ministry of MSME implements the scheme through designated agencies, institutions, and centres.

Proposals are submitted through the notified government portal following the prescribed formats and timelines.

The Ministry of MSME acts as the apex authority overseeing policy direction and implementation.

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