About this programme
The Design Scheme is a component of the MSME Innovative Scheme run by the Ministry of Micro, Small and Medium Enterprises to help MSMEs access professional design advice for new product development and improvement of existing products. It has two parts: Design Projects (design consultancy/interventions for MSMEs) and the Design Awareness Programme (seminars, talks and workshops to sensitize MSMEs about the value of design). Under Design Projects, the Government of India funds 75% of project cost for Micro units and 60% for Small & Medium units, up to a maximum of Rs 40,00,000, released as a grant in three stages (Strategy & Concept 40%, Detail Design 30%, and Final Report/prototype completion 30%). A separate Student Project component funds design work by bona-fide students, with 75% government contribution up to a maximum of Rs 2,50,000. The scheme is implemented through designated academic Implementing Agencies (IISc and select IITs/NITs) and applications are submitted via the MSME Innovative portal. It is run by Office of the Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises — implemented through designated Implementing Agencies (IISc Bengaluru; IITs Kanpur, Indore, BHU, Roorkee, Ropar, Bhubaneswar; NITs Tiruchirappalli, Warangal, Silchar, Arunachal Pradesh, Jaipur, Allahabad, J&K, Bhopal, Nagpur, Calicut, Kurukshetra, Surathkal, Raipur).
A grant is financial support you don’t repay — awarded against eligibility and, usually, agreed milestones or utilisation of funds. The amount and form of support that actually apply to you depend on the programme’s rules and how your application is assessed — they are not fixed for every applicant.
It is aimed at businesses in manufacturing msmes seeking design/product development support (open across manufacturing sub-sectors, not sector-restricted). Like most government programmes, it has its own eligibility conditions, documentation and application window, and these terms are revised from time to time. Because of that, it is worth confirming the current eligibility, amount and deadline on the official programme page before you invest time in applying.
How it works
MSMEs (directly, or with an academic Implementing Agency) submit a design project proposal via the MSME Innovative portal; approved projects receive government grant funding released in three stages tied to project milestones (concept, detailed design, and final prototype/report), with the balance cost borne by the MSME.
Who can apply
Registered Micro, Small or Medium Enterprises with a valid Udyog Aadhaar Memorandum (UAM) or Udyam Registration (manufacturing MSMEs preferably profitable in the last year of operation); a separate sub-component covers bona-fide students undertaking design projects for MSMEs.
How to apply
- Open the website https://innovative.msme.gov.in/ and click on the "Design" option.
- On the next window, click on "Join Design Scheme".
- Enter the Udyam Registration Number along with the Registered Mobile Number.
- Click on "Validate" and complete the further steps to complete the application process.
Documents you’ll typically need
- Udyog Aadhaar Memorandum (UAM) or Udyam Registration (UR) certificate
- UAM/Udyam registered mobile number
The exact checklist depends on the programme and your specifics.
Frequently asked
What is the objective of the Design Scheme?
The objective of this component is to bring the Indian manufacturing sector and Design expertise/Design fraternity onto a common platform. It aims to provide expert advice and cost-effective solutions on real-time design problems for new product development, its continuous improvement and value addition in existing/new products.
What are the broad activities of the MSME Innovative scheme?
The Design scheme is divided into two major parts: a. Design Project - to facilitate MSMEs to develop new design strategies and/or design-related products through interventions and consultancy. b. Design Awareness Programme - to create general awareness and sensitization about the value and power of design for businesses through seminars, talks, workshops etc., to sensitize MSMEs about the usage of design/innovation in various facets of their industry.
What type of financial assistance is provided under the scheme?
Two types of financial assistance are provided under the scheme: Design Project and Student Project.
Who can take the benefit of the scheme?
The beneficiary unit(s) must typically be a registered micro, small or medium enterprise as per the definition in MSMED and should have a valid UAM or Udyam Registration. The manufacturing MSMEs may be a profitable entity preferably in the last 1 year of its operations.
Who will implement the scheme throughout the country?
The implementing agencies for the Scheme, presently, are: Indian Institute of Science (IISc), Bengaluru; IITs (Kanpur, Indore, BHU, Roorkee, Ropar, Bhubaneswar); NITs (Tiruchirappalli, Warangal, Silchar, Arunachal Pradesh, Jaipur, Allahabad, J&K, Bhopal, Nagpur, Calicut, Kurukshetra, Surathkal, Raipur).
How may the proposals be submitted?
Under the MSME Innovative scheme, an MSME Innovative portal has been developed. Now all the proposals/applications will be uploaded on the Innovative portal (https://innovative.msme.gov.in) under the respective scheme component of the MSME Innovative scheme.
Who is the Apex Body of the scheme?
Project Monitoring and Advisory Committee (PMAC) is set up at the office of AS&DC (MSME), who looks after the Planning, Screening, identification and such other functions as deemed fit.
Reviewed July 2026. Government programmes change — confirm current eligibility, amounts and deadlines on the official programme page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.