Question 1

India's main MSME problem is a lack of government funding or absence of targeted schemes.

Accepted Answer

The NITI Aayog report highlighted that the current challenge is not a lack of schemes (the budget tripled between 2019 and 2024), but fragmented delivery across 18 overlapping schemes.

Question 2

All MSME schemes are being merged into one single mega-scheme under the new framework.

Accepted Answer

The report advocates a cautious, selective process, converging similar schemes while preserving the independence of flagship schemes like PMEGP.

Question 3

Consider the following statements regarding the NITI Aayog report on MSME scheme convergence:
1. The report was prepared by the Administrative Staff College of India (ASCI).
2. It recommends merging the ASPIRE scheme into the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP).
3. It advises retaining the independent status of targeted schemes like the National SC/ST Hub and PM Vishwakarma.
How many of the above statements are correct?

Accepted Answer

(b) Only two — Statement 1 is correct: ASCI prepared the blueprint for NITI Aayog. Statement 3 is correct: large flagship and targeted inclusivity schemes were intentionally kept independent to maintain their strategic focus. Statement 2 is incorrect: ASPIRE is recommended to be integrated into the 'MSME Innovative' scheme, not MSE-CDP. It is SFURTI that is merging into MSE-CDP.

Question 4

Match List I (Scheme/Initiative) with List II (Proposed Status in NITI Aayog 2026 Report):
List I
A. SFURTI
B. ASPIRE
C. PMEGP
D. Procurement and Marketing Scheme (PMS)

List II
1. Kept as an independent flagship program
2. Merged into the MSME Innovative scheme
3. Merged into MSE-CDP
4. Integrated into the new Marketing Assistance Wing

Accepted Answer

(a) A-3, B-2, C-1, D-4 — SFURTI (Scheme of Fund for Regeneration of Traditional Industries) converges into MSE-CDP (A-3). ASPIRE converges into MSME Innovative as a special category for agro-rural enterprises (B-2). PMEGP remains independent due to its large scale (C-1). PMS converges with the International Cooperation scheme to form a unified Marketing Assistance Wing (D-4).

Question 5

Assertion (A): The 2026 NITI Aayog report on MSME convergence recommended merging the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) with the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP).
Reason (R): Merging overlapping cluster development initiatives consolidates funding and governance, preventing the dilution of public resources and improving infrastructural scale.

Accepted Answer

(a) Both A and R are true and R is the correct explanation of A — The NITI Aayog report specifically targets SFURTI and MSE-CDP for convergence to eliminate fragmented implementation. By placing SFURTI as a sub-scheme under MSE-CDP, the government can utilize a unified governance structure and earmarked funding to scale traditional industries without duplicating administrative efforts, making R the exact policy rationale for A.

NITI Aayog Releases Report on MSME Schemes Convergence

Geographical Indication Tag Granted to Ponduru Khadi