• Viksit Bharat 2047 is India’s vision to become a developed, inclusive, and sustainable economy. 

• MSMEs are at the core of this transformation, contributing to employment, innovation, exports, and grassroots development across all major sectors. 

• The government is supporting MSMEs through targeted schemes towards equipping them with capital access, digital adoption, green growth, skilling, and infrastructure requirements. 

• While the Govt is doing its bit, even MSMEs need to step forward by formalizing themselves, adopting digital tools, upskilling their workforce, and implementing quality and sustainability standards. 

• Their participation in a cluster-based approach and stronger collaboration with digital platforms, industry bodies, and local institutions can further accelerate MSMEs readiness for 2047. 
   

India is steadily charting its course toward becoming a fully developed nation by 2047. Central to this journey is the Viksit Bharat 2047 vision—an ambitious roadmap laid by the government aimed at driving economic, social, environmental, and technological transformation. And at the core of this vision are the country’s MSMEs, which account for over 90% of all businesses and provide livelihoods to more than 26 crore people. 

For this national aspiration to materialize, the government has already laid a strong foundation through a range of financial schemes, digital platforms, and regulatory reforms. To leverage these, MSMEs must prepare strategically—align themselves with policy priorities, embracing digital and sustainable practices, and actively investing in skill development.  

What is Viksit Bharat 2047 and Why MSMEs Matter

Viksit Bharat 2047 is India’s development blueprint for the next two decades. It aims to build a $30–35 trillion economy, eliminate poverty, ensure 100% skilling of the workforce, achieve substantial women’s economic participation, and transition toward a green and sustainable economy. This vision is anchored on four core pillars as mentioned below – each directly connected to the operations and impact of MSMEs: 

1. Youth  

2. Poor  

3. Women  

4. Farmers 

The mission’s five thematic areas—Empowered Indians, Thriving Economy, Innovation & Technology, Good Governance, and India in the World—are also closely tied to MSME contributions. While MSMEs have been contributing to the nation’s economy, they continue to face several structural challenges, including a lack of access to modern infrastructure and reliable market linkages, and struggle with environmental compliance. These limitations hold back their potential to scale and innovate.  

To overcome these challenges and strengthen them further, the Indian government has laid out several initiatives aligning with the Viksit Bharat 2047 vision.  

Government Initiatives Supporting MSMEs for Viksit Bharat 2047

The Government’s programs go beyond financial assistance and focus on enabling long-term growth through technology adoption, skilling, sustainability, and digital inclusion. These include: 

1. Financial Empowerment & Capital Access 

Access to timely and adequate capital remains fundamental for MSMEs. As of FY24, MSME lending has grown to over ₹27 lakh crore, yet a ₹30 lakh crore credit gap persists, with many small and micro enterprises still relying on informal sources. Bridging this gap requires more than loan disbursals; it requires simplified access, flexible financial products, digital integration, and capacity-building support. While some of these are met by some NBFCs, for larger change, the government has rolled out targeted schemes as below: 

• Self-Reliant India Fund: A ₹50,000 crore fund aimed at providing equity support to MSMEs looking to scale, innovate, or upgrade infrastructure, especially those with high growth potential but limited access to private investment.

• PMEGP (Prime Minister’s Employment Generation Programme): Focused on promoting first-time entrepreneurship, this scheme offers margin money subsidies for setting up new micro-enterprises, particularly in the manufacturing and service sectors, with a special focus on rural and underrepresented communities.

• Business loans and working capital credit: Loans up to ₹5 crore are now accessible from RBI-registered NBFCs like Protium, other financial institutions and government, helping MSMEs ease financing for both existing and new enterprises, particularly in sectors like textiles, food processing, and services.

• MSME Credit Cards: These working capital-linked credit instruments are tailored to an enterprise’s turnover profile, offering flexibility and ease of access for day-to-day business needs, and are especially beneficial for small enterprises with seasonal or variable cash flows. 

These measures are essential for enabling enterprise formalization, scaling, and day-to-day liquidity. But the government is equipping MSMEs not just with capital, but also the tools and knowledge to use it effectively: 

1. Formal Financial Literacy: Targeted programs such as SIDBI’s Financial Literacy Campaigns, the PM SVANidhi Financial Literacy Program, and the Digital Saksharta Abhiyan (PMGDISHA) are equipping MSMEs with practical knowledge on credit guarantee schemes, responsible borrowing, digital payments, and formal documentation. These initiatives aim to improve financial confidence among small business owners by simplifying concepts like loan structures, bank linkages, and digital finance tools. 

2. Financial Literacy Centres (FLCs) conducted by financial institutions under RBI guidelines offer in-person financial education to entrepreneurs, including modules on budgeting, savings, credit, and digital payments. 

3. PM SVANidhi Financial Literacy Program: Part of the Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi scheme includes structured modules to educate informal micro-enterprises and vendors on bank linkages, digital payments, and credit behavior.  

4. Digital Saksharta Abhiyan (DISHA): While broader in scope, DISHA (also called PMGDISHA) promotes basic digital and financial literacy in rural areas, including small entrepreneurs. It also covers the use of digital wallets, UPI, Aadhaar-based services, and internet banking. 

2. Technology Upgradation & Industry 4.0 and Shift Towards Industry 5.0 

While many MSMEs are still in the early stages of adopting Industry 4.0 practices, such as automation, real-time data monitoring, and smart manufacturing, India’s broader industrial landscape is already preparing for Industry 5.0, which emphasizes human-machine collaboration, customization, and sustainability. Recognizing this, NITI Aayog has proposed the establishment of India SME 4.0 Competence Centers to support digital tool adoption, process automation, and data-driven decision-making. In parallel, Technology Centers across the country are helping MSMEs access advanced machinery, product testing facilities, and targeted skilling programs. 

Additionally, platforms like GeM (Government e-Marketplace), ONDC (Open Network for Digital Commerce), and the Udyam Assist Portal are helping small enterprises expand their market reach, access government procurement, and integrate with broader e-commerce ecosystems. Recently, the government also announced a dedicated MSME Global Trade Portal to support export-ready small businesses with access to international buyers, market insights, and trade facilitation services. Importantly, these digital platforms are not just transactional—they lay the groundwork for a shift toward Industry 5.0, where human-centric technology, customization, and sustainability will define how MSMEs manufacture, trade, and grow. 

3. Skilling & Workforce Development 

The government has approved a ₹60,000 crore skilling scheme to build a workforce ready for sectors such as AI, semiconductors, and 3D printing. Schemes like ESDP (Entrepreneurship and Skill Development Programme) and platforms like MY Bharat focus on integrating skilling efforts with local industry demand. Launched as a technology-driven, autonomous body, MY Bharat serves as a unified platform to engage young people in skill-building, leadership development, and community participation. It also connects them with relevant government programs, training partners, and volunteer opportunities based on local industry needs. Partnerships with ITIs and customized training modules for medium enterprises are being promoted to ensure practical impact. 

4. Green Growth & Sustainability Schemes 

India is prioritizing green growth as it aims for net-zero emissions by 2070. The country has already met its 2030 target of sourcing 40% of electricity capacity from non-fossil fuel sources, well ahead of schedule. Today, India ranks 4th globally in installed renewable energy capacity and is home to three of the world’s five largest solar parks.  

Other achievements include: 

• Renewable energy capacity has tripled since 2014 

• Solar power has seen an extraordinary 3450% growth 

• Over 2 crore LED street lights have been installed under national schemes 

• Power from solar and wind is now available at less than ₹2.50/unit, making clean energy more accessible for industries.

Ambitious programs like eight Hydrogen Missions and three Waste-to-Energy Missions have been launched, and Indian Railways is on track to become Net Zero by 2030. All of these ambitions have been achieved by the support of India;s MSMEs and those who adopt green practices early, can also benefit in many ways: 

• ZED (Zero Defect Zero Effect) Certification: Promotes quality manufacturing with minimal environmental impact through structured certification and incentives. So far, over 45,000 MSMEs have registered under the ZED scheme, indicating growing awareness and adoption of sustainable manufacturing standards.

• MSE-GIFT (Green Investments Financing for Transformation): Provides concessional finance and technical support to MSMEs adopting clean and energy-efficient technologies. As of early 2024, over 400 MSMEs have applied under the scheme to fund renewable energy, green building, and clean mobility solutions.

• MSE-SPICE (Micro and Small Enterprises – Scheme for Promotion and Investment in Circular Economy): Encourages investments in resource efficiency and waste reduction, offering capital subsidies to MSMEs adopting circular economy models. The scheme has already seen over 800 applications, reflecting strong early traction among manufacturing units. 

These initiatives promote eco-friendly manufacturing, energy efficiency, and sustainable resource use while offering capital subsidies and concessional loans. 

5. Digital Infrastructure & Inclusion 

India’s digital public infrastructure—collectively known as India Stack—has transformed how MSMEs access services, finance, and markets. Comprising tools like Aadhaar, UPI, DigiLocker, eSign, and ONDC, this ecosystem has become the backbone of digital governance and commerce. 

• Aadhaar has enabled instant identity verification, simplifying KYC processes for MSMEs to access government schemes, open current accounts, and onboard digital platforms with minimal paperwork.

• UPI (Unified Payments Interface) has revolutionized small business transactions by facilitating real-time, low-cost digital payments—enhancing traceability, improving cash flow management, and making it easier for MSMEs to build credit histories. 

• DigiLocker allows MSMEs to store and share official documents—such as Udyam certificates, PAN, GST, and licenses—digitally and securely, reducing physical compliance burden and improving trust with partners and financial institutions.

• eSign enables legally valid electronic signatures on documents, making processes like loan applications, vendor contracts, and subsidy claims faster, secure, and paperless.

• ONDC (Open Network for Digital Commerce) is opening up digital marketplaces to small sellers, helping MSMEs participate in e-commerce without being dependent on dominant platforms, thereby expanding market access and visibility.

Furthermore, the upcoming ULI (Unified Lending Interface) is focused on streamlining digital lending, allowing MSMEs to apply for and receive loans through consent-based access to verified financial data—bringing speed, transparency, and inclusion to credit delivery. 

Together, these platforms have removed long-standing frictions in how small businesses operate, apply for credit, reach customers, and comply with regulation. By plugging into this digital infrastructure, MSMEs can now formalize faster, scale smarter, and grow with greater resilience in the digital economy. 

How MSMEs Can Prepare for Viksit Bharat: Strategic Actions to Take 

MSMEs can take the measures given below to prepare for Viksit Bharat 2047: 

1. Formalize and Integrate 

The sector has 4.15 crore registered MSMEs as of 2023–24, while the estimated number of unregistered businesses remains at 3.19 crore¹. Unregistered or informal MSMEs often miss out on government support. By registering on the Udyam Portal, maintaining digital records, and embracing financial discipline, small businesses can access easier credit, insurance, and tenders. Formalization also enhances transparency and investor confidence. 

2. Adopt Digital and Tech Tools 

Starting small is key. MSMEs can: 

• Enable ePayments using UPI or mobile-based PoS systems. 

• Use SaaS tools for accounting, inventory, and CRM. 

• Join ONDC or GeM to reach larger customer bases. 
   

Affordable automation and real-time data analytics can further enhance decision-making and reduce wastage. 

3. Invest in Skills and People 

MSMEs must invest in internal capability-building. Local ITIs, skilling platforms, and online courses can help upskill teams in: 

• Operations management 

• Quality control 

• Digital tool usage 
   

Cross-training also improves team flexibility and reduces dependency on external labor. 

4. Get Certified and Build Quality 

Certifications like ISO, BIS, and ZED can act as business enablers. They improve customer trust, allow entry into global supply chains, and reduce rework. Government incentives are available for achieving these benchmarks.  

An example of this impact can be seen in the case of Balaji Super Spandex, which undertook a structured approach to quality improvement and expansion. With timely financial support and a clear focus on formal processes, the company scaled its capacity by 50%, reflecting how aligning with quality and compliance standards can directly drive business growth. 

5. Embrace Sustainability 

Green compliance will soon become non-negotiable, especially for exporters. MSMEs should: 

• Adopt renewable energy and resource efficiency practices. 

• Apply under MSE-GIFT or MSE-SPICE for financial aid. 

• Begin tracking carbon footprints and sustainability metrics. 
   

This not only ensures compliance but appeals to global buyers and ESG-conscious investors. 

The Road Ahead: Cluster-Based Approach for MSME Transformation

One of the most effective ways to enable MSME progress is through cluster development. Encouraging MSMEs in similar sectors or geographies to collaborate—whether through shared logistics, common facility centers, or joint skilling centers—can improve efficiency and competitiveness. 

Partnerships with local associations, district industries centers, and incubators can help MSMEs access: 

• Innovation support 

• Testing labs 

• Mentoring and funding 

Such networks reduce overhead costs and facilitate economies of scale. 

The vision of Viksit Bharat 2047 is not an abstract policy but a collective mission that calls upon every segment of Indian society to contribute meaningfully. For MSMEs, this is a historic opportunity to redefine their role—not merely as economic contributors but as agents of inclusive development, innovation, and sustainability.