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RAMP Yojana for MSMEs

Recently, the Union Cabinet approved the RAMP (Rising and Accelerating MSME Performance) scheme to enhance and expedite the performance of MSMEs (Micro, Small, and Medium Enterprises), which will commence in the financial year 2022-23.

This initiative aligns with recommendations made by the UK Sinha Committee, the KV Kamath Committee, and the Prime Minister’s Economic Advisory Council (PMEAC). The Reserve Bank of India established a specialized committee on micro, small, and medium enterprises under the chairmanship of UK Sinha in 2019 to suggest long-term measures for the economic and financial stability of the MSME sector.

The announcement of this scheme was made in the Union Budget of 2022-23 by the Finance Minister.

RAMP Scheme Overview

This is a centrally sponsored scheme with assistance from the World Bank that aims to provide the necessary support to address COVID-19-related challenges faced by the Ministry of Micro, Small, and Medium Enterprises (MSME).


  • Improvement in market access and credit.
  • Strengthening various institutions and governance at the central and state levels.
  • Enhancing collaboration between the center, states, and stakeholders.
  • Resolving issues related to delayed payments by MSMEs and promoting environmentally sustainable products and processes.


A crucial component of RAMP is preparing a Strategic Investment Plan (SIP) in which all states and union territories will be invited to participate. The SIP and RAMP will identify key barriers and intervals for small, medium, and micro-enterprises and allocate necessary budgets for priority sectors such as renewable energy, rural and non-agricultural businesses, wholesale and retail trade, rural and cottage industries, and women-led enterprises.

The comprehensive monitoring and policy oversight of RAMP will be conducted by a top-level National MSME Council, involving representatives from various ministries, including the Minister of MSMEs. Under this scheme, a Program Committee will be formed under the chairmanship of the Secretary of the MSME Ministry.


The total expenditure for this scheme is ₹6,062.45 crore, out of which ₹3,750 crore will be obtained as a loan from the World Bank, and the remaining ₹2,312.45 crore will be provided by the Government of India.

Implementation Strategy

By focusing on improving market access and competitiveness, financial allocation through RAMP in the ministry’s budget will be linked to Disbursement Linked Indicators (DLIs) to support current programs of the MSME Ministry.

The funds received for RAMP from the World Bank will be disbursed based on fulfilling the following linked indicators:

  • Implementation of the National MSME Improvement Agenda.
  • Acceleration of central-state cooperation for the MSME sector.
  • Enhancing the effectiveness of the Technology Upgradation Scheme (CLCS-TUS).
  • Strengthening financial support for MSMEs.
  • Increasing the effectiveness of credit guarantee schemes for micro and small enterprises (CGTMSE) and “Greening and Gender” delivery.

Benefits of the Scheme

Addressing challenges faced by the MSME sector

The RAMP program will enhance the competitiveness impact of existing MSME schemes, thereby addressing general and COVID-related challenges faced by the MSME sector.

Addressing inadequately addressed issues in MSMEs

The program will focus on addressing inadequately addressed issues such as capacity building, handholding, skill development, quality enhancement, technological advancement, digitization, outreach, and marketing promotion.

Job Creation

This program will work with states to function as a job creator, market promoter, and financial facilitator through increased cooperation.

Initiation of Formalization

Due to the high impact of covered schemes in states with low MSME presence, the program will initiate extensive formalization. SIPs developed by these states will act as roadmaps for the development of a better MSME sector.

Supplementary to the ‘Self-reliant India’ Campaign

This program will complement the’ Self-reliant India Mission’ by promoting high industrial standards, innovation, growth, and development in industry practices and providing necessary technical inputs to MSMEs.

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