MSME Trade Enablement and Marketing Initiative

Digital adoption and marketing enablement subsidy

Ministry of MSME has designed a new initiative, MSME TEAM (Trade Enablement and Marketing) under the World Bank supported Raising and Accelerating MSME Productivity (RAMP) Programme of the Ministry of MSME. The initiative will empower MSMEs with digital tools and guidance to effectively utilize the e-commerce marketplace. One of the primary objectives of the MSME TEAM Initiative is to support MSMEs to help them access different markets by integrating them with ONDC. This will enable the MSMEs in widening their customer base and increase their income. This will also strengthen the trustworthiness and credibility of MSMEs by establishing their digital presence and transaction history.

MSME Trade Enablement and Marketing Initiative Objective Image

Objectives

Formalisation of MSMEs: The integration of MSMEs into the digital commerce ecosystem leads to formalisation of their operations, ensuring compliance with regulations and enhancing their legitimacy in the market. This can improve their access to financial services and government support.
Digitization of MSMEs thereby enhancing their competitiveness: Embracing ecommerce can drive the digitization of MSMEs' operations, enabling them to streamline processes, optimise supply chains, and improve overall efficiency. This enhanced competitiveness can help MSMEs thrive in a rapidly evolving business landscape.
Creation of public digital asset for MSMEs: Create a MSME specific marketing Digital Public Infrastructure – Udyami Bharat Digital Commerce (UBDC), which will create the necessary public digital infrastructure (a B2B Seller App, a B2B Buyer App and a B2C Seller App) for digitalization of commerce for MSMEs. This application will onboard MSME buyers and sellers and enable e-commerce transactions.
Cost of Doing Business: MSMEs will have access to a significantly higher number of buyers, suppliers and service providers through UBDC which will help bring the cost of doing business down. The cost of doing business including commission would be lower than what is charged by traditional e-Commerce platforms. This will allow even the smallest of units to conduct online transactions.
Enabling and making them export ready: By participating in e-commerce, MSMEs can expand their reach to international markets, making them more export ready. The digital platform provides access to a global customer base, potentially boosting export opportunities and contributing to the growth of the local economy.
Convergence with all government initiatives: Converge Msme TEAM Initiative, Udyam database, Trade Receivables electronic Discounting System, Online Dispute Resolution solution, Credit Support programmes, Interest Subvention programmes, mSeva, Digilocker, Digital MSME scheme, etc that align with the objectives of the MSME TEAM initiative.
Expanding Market Reach for MSMEs: Enable MSMEs to present their products and services to a wider audience, unlocking new market prospects beyond their conventional local customer base.
Simplified Digital Infrastructure through ONDC: Ease the burden on MSMEs to invest in developing their own digital setup or e-commerce platforms. By capitalising on the ONDC ecosystem, MSMEs can access a readily available digital framework, complete with online storefronts, payment gateways, and logistical support.
Enhancing Credibility and Financial Standing: Strengthen the trustworthiness and credibility of MSMEs by establishing their digital presence and transaction history.
Localised e-commerce Access: Offer MSMEs access to e-commerce platforms in their native languages, starting with Hindi and English, while allowing for the addition of more languages to support the Government of India's "Local for Global" initiative.
Nationwide Outreach and Education: Engage with MSMEs across the nation through awareness campaigns and workshops, educating them about the advantages and practicality of embracing e-commerce platforms.

Benefits

Free onboarding onto ONDC
Subsidized cataloging, logistics, and packaging costs
Account management support
Enhanced market reach and export readiness
Access to financial tools and digital infrastructure

MSME Trade Enablement and Marketing Initiative Benefit Image

Eligibility

All the Udyam registered Micro and Small Enterprises (MSEs) under manufacturing and services sectors will be eligible for benefits under the Initiative. The MSEs who have Udyam Registration certificate without a GST will only be able to do intra-state online business as per applicable laws.
The MSE should not have been onboarded on any SNP as on the date of operationalisation of the Initiative.
The MSE unit should not have taken similar assistance from any other Central / State Government schemes / programmes.
The MSEs who want to avail benefits under this Initiative shall authorize ONDC to share their relevant details, including transactions on the ONDC Network, with the Implementing Agency (NSIC) for the purpose of scheme administration and support, in compliance with applicable laws.