This blog includes an overview of the MSME-TEAM Scheme, detailing its purpose of helping Micro and Small Enterprises (MSEs) connect to e-commerce platforms. It explains the role of ONDC in making it easier for small businesses to access digital commerce and provides eligibility criteria for MSEs under the initiative. It also covers the opportunities and advantages the initiative provides. Finally, it outlines how to apply for the scheme and emphasizes its inclusive focus.
June 2024, the Ministry of MSME launched the “MSME Trade Enablement and Marketing Initiative” (MSME-TEAM scheme), a key program aimed at integrating five lakh MSMEs into India’s digital commerce ecosystem.
By enabling these businesses to join the Open Network for Digital Commerce (ONDC) platform, the initiative is set to transform how MSMEs operate in the digital space. This is a crucial sub-scheme under the Central Sector Scheme “Raising and Accelerating MSME Performance” (RAMP) and marks a major step towards creating a digitally empowered economy.
(Subscribe for alerts to stay updated with new podcast episodes and blogs for MSMEs & Startups)
What is ONDC?
The Open Network for Digital Commerce (ONDC) is a platform designed to democratize digital commerce for MSMEs. By providing an open, inclusive, and interoperable platform, ONDC allows businesses to connect directly with consumers and service providers across a decentralized network. This reduces dependency on dominant e-commerce platforms, lowers operational costs, and offers MSMEs greater market reach, cost efficiency, and access to logistics, payment services, and digital tools, promoting fair competition and transparency.
Listen to MSME TALK Episode 44-REACH MORE CUSTOMERS THROUGH ONDC. Ep 44 covers how SMEs can leverage and onboard on ONDC for wider reach and growth
What is the MSME-TEAM Scheme?
The MSME-TEAM Initiative is a structured program aimed at enhancing the e commerce capabilities of MSMEs across India. By supporting businesses’ onboarding onto ONDC, the scheme facilitates digital visibility and broader customer access.
Key Highlights of MSME TEAM Scheme
Target Beneficiaries:
Five lakh MSMEs, including 2.5 lakh women-owned businesses, will benefit from financial and technical assistance.
Timeline:
The program is set to run from 2024 to 2027, with sustained benefits beyond.
Core Activities:
Awareness Workshops: Focused on educating businesses in Tier 2 and Tier 3 cities about ONDC.
Hand-Holding Assistance: Direct support for seamless onboarding.
Financial Subsidies: Aid for catalog creation, account management, logistics, and packaging.
Driving Inclusivity:
A key component of the MSME-TEAM Initiative is its commitment to inclusivity. The program focuses on bridging the digital divide by prioritizing SC/ST-owned, and underserved MSMEs.
Women Empowerment:
Goal: With only 20% of Indian MSMEs run by women, the initiative aims to increase female participation in the formal economy.
Regional Outreach Approach:
Localized workshops and training ensure that MSMEs from remote and traditionally underserved areas can participate.
(Are you a business or expert serving MSMEs and startups? Spotlight your services and expertise – partner with MSME TALK to create podcasts, blogs, listings, and social media content that truly reach and inspire! Reach us at connect@msmetalk.com)
Eligibility Criteria for MSEs Under the MSME TEAM Scheme
- The MSE should not have been onboarded on any Seller Network Participant (SNP) as of the date of operationalization of the Initiative.
- The business should not have already received similar benefits from other government programs.
- MSEs seeking benefits under this Initiative must authorize ONDC to share relevant details, including transactions on the ONDC Network, with the Implementing Agency (NSIC) for administrative purposes, ensuring compliance with applicable laws.
SNPs (Seller Network Participant ) will be the primary points for onboarding MSEs onto the ONDC network. Their responsibilities include:
- Onboarding eligible MSEs and supporting catalog creation.
- Acting on leads generated through the Initiative portal.
- Providing operational and account management support to onboarded MSEs.
- Facilitating growth through order support, pricing strategies, and market intelligence.
- Submitting reports and participating in workshops.
- Including Initiative beneficiaries in marketing campaigns.
(If you are an Industry Expert, then Share about your expertise with us on MSMETALK Podcast)
Implementation and Key Collaborations
Implementing Agency: The National Small Industries Corporation (NSIC) oversees implementation.
Collaboration: Supported under the World Bank-backed RAMP program, ensuring efficient resource utilization and scalability.
Budget: ₹277.35 crore for FY 2024–2027.
(MSME TALK podcast is available across all major platforms like Apple Podcast, Spotify, Gaana Podcast, Amazon Podcast, Jio Saavan)
Support and Benefits by the MSME TEAM Scheme for MSMEs
Digital Catalogue Creation:
- The SNPs will be supported towards the preparation of ONDC Compliant digital catalogue for MSEs. This will be capped at Rs. 2,500 per MSE.
Account Management Support:
- Seller Network Participants (SNPs) will be incentivized with up to ₹5,000 per MSME to help MSMEs manage their online business. This includes:
- Order fulfillment
- Operations and logistics support
- Training and capacity building
- Contract management (for B2B transactions)
Logistics Subsidies:
- For B2C Orders: ₹50 per order (up to 10 orders per MSME).
- For B2B Orders: ₹200 per order (up to 10 orders per MSME).
Packaging Material Support:
- For B2C Orders: ₹20 per order (up to 10 orders per MSME).
- For B2B Orders: ₹250 per order (up to 10 orders per MSME).
Packaging Design Assistance:
- MSMEs can receive a 20% subsidy on packaging design costs or up to ₹2,000, whichever is lower.
AI-Based Cataloguing:
- An AI-based system will be developed to speed up and reduce costs for preparing digital catalogues for eCommerce.
Benefits from MSME Portal:
The initiative’s portal (msmemart.com) will provide services in regional languages, including:
- Information about the initiative
- Registration and fund management systems
- Centralized support (call centers/help desks)
- Embedded financial tools
- Packaging design subsidy management
- Management Information Systems (MIS)
(Subscribe for alerts to stay updated with launch of new blogs/podcast episodes about MSMEs & Startups)
Link to Register for the Scheme
Opportunities and Advantages for MSMEs from ONDC Platform
The MSME-TEAM Initiative offers numerous advantages for small businesses, including:
Market Expansion: ONDC enables MSMEs to reach customers beyond their local markets, breaking geographical barriers and allowing businesses to tap into a much larger, nationwide customer base.
Cost Reduction: One of the biggest advantages for MSMEs is the reduction in commission fees compared to traditional e-commerce platforms, which helps lower operational costs and increases profitability, allowing MSMEs to remain competitive.
Leverage ONDC Infrastructure: ONDC provides MSMEs with a robust digital infrastructure, including easy storefront creation, secure payment systems, and integrated logistics solutions, all of which make it easier for small businesses to engage in online commerce.
Digital Competitiveness: By digitizing essential business operations—such as inventory management, customer service, and marketing—ONDC helps MSMEs improve their efficiency, adapt to market changes, and better compete against larger businesses in the digital economy.
Export Readiness: ONDC’s platform helps MSMEs prepare for global expansion by connecting them to international buyers, opening up new opportunities for export and market diversification.
Localized E-Commerce: Understanding the importance of inclusivity, ONDC supports e-commerce solutions in regional languages, ensuring MSMEs can reach a wide and diverse audience under the “Local for Global” initiative.
Convergence with Government Initiatives: ONDC works hand in hand with government schemes like Udyam and PM Vishwakarma, providing MSMEs with financial, technical, and skill development support, thus creating a comprehensive growth ecosystem.
(Subscribe MSME TALK for alerts to stay updated with new podcast episodes and blogs by experts for MSMEs & Startups)
Strategic Goals and Long-Term Vision of the Scheme
This initiative aligns with India’s goal of becoming a $5 trillion economy by 2027. By digitizing MSMEs, the program aims to:
Boost E-commerce Penetration: Support India’s target of $340 billion in digital consumption by 2030.
Promote Atmanirbhar Bharat: Contribute to economic self-sufficiency by integrating small businesses into digital marketplaces.
Support Green Growth: Promote sustainable practices through green logistics and eco-friendly packaging solutions.
Awareness and Training
150 workshops will be organized across the country to create awareness among MSMEs about business benefits of e-commerce for their eventual onboarding onto ONDC compliant Seller Network Participants (SNPs)
Digital Campaigns to promote e-commerce literacy.
Conclusion: A Step Towards a Digital-First Future
The MSME-TEAM Initiative is a crucial step towards digitally empowering India’s MSMEs. By addressing the challenges of inclusivity, awareness, and operational inefficiencies, the initiative can unlock vast opportunities for small businesses and drive economic growth. As India moves toward becoming a digitally empowered economy, MSMEs must embrace digital transformation and leverage ONDC’s opportunities to thrive in a competitive marketplace.
Frequently Asked Questions (FAQs)
- What is the MSME TEAM- Initiative Scheme?
MSME TEAM Initiative is to support MSMEs to help them access different markets by integrating them with commerce platforms. Who can join the MSME TEAM – Initiative Scheme?
All the MSEs certified under Udyam Registration (both in manufacturing and service sector) will be eligible for benefits under the Scheme
What benefits does MSME TEAM scheme offer to eligible MSEs?
The MSEs will be provided handholding support for e-commerce operations. Read section “Support and Benefits by the Scheme for MSMEs” for detail benefits- Last date for MSME TEAM scheme?
The Scheme duration is 3 years (FY 2024-2025 to FY 2026-2027)
(MSME TALK is now available on Youtube also)