📷 Image: Wikimedia Commons / Ministry of Micro,Small & Medium Enterprises, Gove
Sarkari Yojana
India Launches 5-Year MSME Incentive Plan: Up to 45% Capital Aid & ₹1 Lakh AI Grant
✍️ Bhaskar English
🗓 10 Oct 2026, 01:47 PM
👁 15
The government unveiled a five‑year incentive package for micro, small and medium enterprises, offering up to 45% of capital investment costs and a ₹1 lakh grant to support AI adoption.
The Ministry of Micro, Small and Medium Enterprises announced a new five‑year incentive scheme aimed at boosting the growth of MSMEs across the country. The package will provide financial support covering up to 45% of capital investment costs incurred by eligible enterprises.
In addition to capital aid, the scheme offers a fixed grant of ₹1 lakh per firm to facilitate the adoption of artificial intelligence technologies. The grant is intended to help MSMEs upgrade their digital capabilities and improve productivity.
Eligible firms must meet the size criteria set by the MSME Act and demonstrate a plan for using the AI grant in a manner that enhances their operational efficiency. Applications will be accepted through the existing MSME portal, with approvals expected within a few weeks of submission.
The government expects the initiative to create jobs, increase competitiveness and accelerate the digital transformation of the sector over the next five years.
In addition to capital aid, the scheme offers a fixed grant of ₹1 lakh per firm to facilitate the adoption of artificial intelligence technologies. The grant is intended to help MSMEs upgrade their digital capabilities and improve productivity.
Eligible firms must meet the size criteria set by the MSME Act and demonstrate a plan for using the AI grant in a manner that enhances their operational efficiency. Applications will be accepted through the existing MSME portal, with approvals expected within a few weeks of submission.
The government expects the initiative to create jobs, increase competitiveness and accelerate the digital transformation of the sector over the next five years.