Lok Sabha Question No. 3289 (UNSTARRED), answered on 2026-03-12
Subject: Development of MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Ganesh Singh

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3289 TO BE ANSWERED ON 12.03.2026

## DEVELOPMENT OF MSMEs

## 3289.  SHRI GANESH SINGH:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the major initiatives and achievements recorded so far under programmes such as Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Micro and Small Enterprises - Cluster Development Programme (MSE-CDP), One District One Product (ODOP) and Common Facility Centres (CFCs) to accelerate infrastructure development and cluster-based growth;
- (b) whether  the  Government  is  promoting  digitalisation,  Industry  4.0  adoption,  AI/IoT-based solutions,  e-commerce  onboarding  and  technology  upgradation  to  enhance  MSME  productivity, competitiveness and global market access and the concrete measures undertaken in this direction; and
- (c) whether the Government is considering launching cluster-based digital MSME hubs or pilot projects  in  emerging  industrial  districts,  particularly  Satna  district  in  Madhya  Pradesh,  to  further strengthen local employment, innovation and export potential?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a) to (c): Micro and Small Enterprises-Cluster  Development  Programme  (MSE-CDP)  of Ministry of Micro, Small and Medium Enterprises, Government of India establish Common Facility Centers (CFCs) and create/upgrade Infrastructure Facilities (ID Projects) providing financial support to  enhance  the  productivity  and  competitiveness  of  Micro  and  Small  Enterprises  (MSEs)  in  the existing cluster. Total 606 projects have been approved since inception of the scheme out of which 242 projects are ongoing and 364 projects are completed.

Under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), significant progress has been made in promoting cluster-based development, strengthening traditional industries, and enhancing rural livelihoods. A total of 513 clusters has been approved across the country since 2015-16,  with  a  approved  committed  Government  of  India  assistance  of  ₹1,332.95  crore.  These clusters  are  proposed  to  benefit  approximately  3.03  lakh  traditional  artisans  engaged  in  diverse sectors  such  as  handicrafts,  handloom,  agro-processing,  coir,  honey,  and  related  activities.  Of  the total  clusters  approved,  378  clusters  are  currently  functional,  while  135  clusters  are  under  various stages of implementation as on date, contributing to infrastructure development, skill enhancement, value addition, and improved market linkages at the grassroots level.

Under  Micro  and  Small  Enterprises-Cluster  Development  Programme  (MSE-CDP),  the admissible components/area for setting up of Common Facility Centres (CFCs) inter alia include:

- i. Industry 4.0 and its Learning Facilities, Additive Manufacturing Facilities, Digital Infrastructure.
- ii. Design/Incubation Centres.
- iii. Training Centre / Skill Upgradation Facilities.
- iv. R&D Centres.
- v. Common  Renewable  Energy  Generation  (Solar,  Wind,  Bio)  and  Energy  Management equipment.
- vi. CFC for Greenfield clusters for holistic developments of MSME sector.

MSE-CDP  is  a  demand  driven  Central  Sector  Scheme  wherein,  State  Governments  send proposals as per common needs of existing cluster in their States/UTs. The following projects have been approved under MSE-CDP for Satna district in Madhya Pradesh:

| S. No.   | Name of projects                             | Total Project Cost   | Approved GoI     | Status (Ongoing/   |
|----------|----------------------------------------------|----------------------|------------------|--------------------|
|          |                                              | (Rupees in lakh)     | (Rupees in lakh) | completed)         |
| 1        | Up-gradation for Industrial Area at Matehana | 1074.39              | 595.7            | Ongoing            |
| 2        | New Industrial Estate at Nadantola, Distt.   | 502.96               | 201.19           | Completed          |

The industrial landscape in the country has witnessed increased digitalisation in recent years, with  enhanced  operational  efficiency  for  MSME  in  value  creation  and  competitiveness.  There  is increasing participation in digital payments, e-commerce transactions, IOT enabled production tools and  AI  based  technologies  for  improved  business  operations.  To  promote  digital  upgradation  and adoption  of  emerging  technologies  for  greater  productivity  and  competitiveness  among  MSME, Government  has  taken  several  initiatives.  These  include  Ministry  of  Electronics  and  Information Technology platforms like DigiLocker and IndiaAI Datasets Platform aimed at empowering MSME to become resilient, competitive and sustainable by leveraging digital technologies, and Department of Telecommunications networks like BharatNet and PM-WANI for affordable access and last mile connectivity. Ministry of Micro, Small and Medium Enterprises is supporting digital empowerment of MSME through digital registration under Udyam, training in Tool Rooms /Technology Centres for technology adoption, incubation of new ideas and technologies through MSME Innovative scheme and MSE Green Investment for Financing Transformation scheme for promoting investment in green technologies.    Components  of  financial  incentives,  capacity  building  and  awareness  are  suitably embedded in the design of the above Government funded schemes.

The Ministry has launched Trade Enablement and Marketing (TEAM) scheme which aims at facilitating Micro and Small Enterprises for onboarding onto Open Network for Digital Commerce (ONDC)  by  providing  financial  assistance  to  Seller  Network  participants  (SNPs)  for  onboarding, cataloguing,  account  management,  logistics,  packaging  material  and  design.  Notably,  half  of  these beneficiary MSMEs will be women-owned enterprises.

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