§1Who it is for

  • Registered MSMEs with Udyam/UAM

Useful if

MSMEs wanting design consultancy for a new product

Do not spend time on it if

Units without Udyam registration

§2Eligibility

  1. The beneficiary unit(s) must typically be registered micro, small or medium enterprises.
  2. Should have a valid Udyog Aadhaar Memorandum (UAM) or Udyam Registration certificate.

§3Benefits

Design Project

  • Financial assistance under this activity will be utilised for engagement of design consultants for design interventions and expenses pertaining to development of prototype/product. For the design projects approved for any MSME, 75% (Micro) and 60% (Small & Medium) of the total project cost will be contributed by Government of India, up to a maximum of ₹ 40,000,00/- and the remaining project cost will be borne by MSMEs and deposited to the IA.
  • The total project cost will be provided as a grant in 3 stages
  • Stage 1: Strategy & Concept- 40%
  • Stage 2: Detail Design - 30%
  • Stage 3: Successful Completion of the prototype/product and Final Report submission - 30%.

Student Project

  • This component supports design work of bona-fide students by providing financial assistance up to ₹ 2,50,000/-. For the student design projects approved for any MSME,75% of the total project cost will be contributed by Government of India, up to a maximum of ₹ 2,50,000/- and the remaining project cost will be borne by MSME and deposited to the IA.

§4Norms — pattern of assistance

  1. Financial assistance under this activity will be utilised for engagement of design consultants for design interventions and expenses pertaining to development of prototype/product. For the design projects approved for any MSME, 75% (Micro) and 60% (Small & Medium) of the total project cost will be contributed by Government of India, up to a maximum of ₹ 40,000,00/- and the remaining project cost will be borne by MSMEs and deposited to the IA.
  2. Stage 1: Strategy & Concept- 40%
  3. Stage 2: Detail Design - 30%
  4. Stage 3: Successful Completion of the prototype/product and Final Report submission - 30%.
  5. This component supports design work of bona-fide students by providing financial assistance up to ₹ 2,50,000/-. For the student design projects approved for any MSME,75% of the total project cost will be contributed by Government of India, up to a maximum of ₹ 2,50,000/- and the remaining project cost will be borne by MSME and deposited to the IA.

§5Documents

Tick each one as you get it ready.

§6How to apply

  1. 1

    [Online] Step 1: After opening the website https://innovative.msme.gov.in/ , Click on the "Design" option.

  2. 2

    Step 2: On the next window, click on "Join Design Scheme".

  3. 3

    Step 3: Enter the Udyam Registration Number along with the Registered Mobile Number.

  4. 4

    Step 4: Click on "Validate" and then complete further steps to complete the application process.

§7Pros and cons

Merits

  • Government pays 75% (micro) or 60% (small/medium) of design project cost
  • Student design projects also supported

Demerits

  • Project approval through implementing agencies
  • Cap per project as printed

→Related schemes

Need help with DS?

Eligibility check, DPR and application file — ask us on WhatsApp.

WhatsApp usServices

Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. myScheme — Design Scheme Under MSME Innovative Scheme
  2. Guidelines
  3. FAQs

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.