MSME Champions Scheme

What is the MSME Champions Scheme?

MSME Champions Scheme is an umbrella scheme of the Ministry of Micro, Small and Medium Enterprises that helps existing MSMEs become more competitive through certification, process improvement, innovation support and technology adoption. According to the National Institute for Micro, Small and Medium Enterprises, the scheme was formulated by merging all six components of the erstwhile Technology Upgradation Scheme (TUS) for a five-year period from 2021-22 to 2025-26.

MSME Champions Scheme is not a loan scheme and not an income-support scheme. It pays for the things a small manufacturer usually cannot justify spending on, a quality certification, a lean consultant, a patent filing, a professional product design, and it pays for most of the cost, not a token share.

The name is shared with the CHAMPIONS portal at champions.gov.in, which the Ministry describes as a single window for "speedy, convenient and effective redressal of MSMEs grievances" together with handholding support. The portal works in eleven languages through 69 state control rooms.

Key objectives

• Encourage zero defect manufacturing with zero effect on the environment.
• Cut waste and improve productivity through lean manufacturing practice.
• Support innovation, design improvement and intellectual property creation.
• Modernise MSME manufacturing processes and widen national and global reach.

Main components

• MSME Sustainable (ZED); Zero Defect Zero Effect certification at Bronze, Silver and Gold levels, with heavy subsidy on certification cost.
• MSME Competitive (Lean): lean manufacturing implementation with a consultant, in Basic, Intermediate and Advanced levels.
• MSME Innovative; Incubation, Intellectual Property Rights and Design.
• Digital MSME: announced as a cross-cutting element to be integrated across the components.

Reported progress

• More than 93.61 lakh MSMEs registered under ZED and over 6.68 lakh enterprises certified, as of May 2026.
• 833 Host Institutes approved under the Incubation component.
• 21 MoUs signed and 69 professional design and student projects approved under Design.
• 191 patents, 807 trademarks, 99 designs and 6 GI registrations approved through Intellectual Property Facilitation Centres.

Who is eligible for the MSME Champions Scheme?

You can apply if:

• Your enterprise holds a valid Udyam Registration Number. This is the single entry condition across all components.
• You are a micro, small or medium enterprise in manufacturing or services, as classified under the MSMED Act.
• For ZED, you are willing to take the ZED pledge and go through assessment at Bronze, Silver or Gold level.
• For Lean, you are a manufacturing unit willing to work with an empanelled lean consultant through the Basic, Intermediate and Advanced levels.
• For Incubation, you are an innovator with an idea, working through an approved Host Institute, or an institution seeking to become one.
• For IPR, you are an MSME that has filed or intends to file a patent, trademark, design or geographical indication.

You cannot apply if:

• You have no Udyam registration. An unregistered business cannot apply under any component, and Udyam registration is free at udyamregistration.gov.in.
• You are an individual seeking a personal grant or loan. MSME Champions pays enterprises for specific interventions; individuals are not eligible for a cash benefit.
• You are a large enterprise outside the MSME definition: not eligible.
• You want reimbursement for IPR filings made before registering under the component, which are normally not eligible for support.
• You want the full cost covered. The subsidy is capped by enterprise size, and the balance, for example 10% of the Lean consultancy cost; must be paid by the enterprise.

What documents are required for the MSME Champions Scheme?

How to apply for the MSME Champions Scheme

Each component has its own portal, but the first three steps are common.

1. Get or confirm your Udyam registration at udyamregistration.gov.in. Registration is free; note the Udyam Registration Number and the registered mobile number, since portal logins use OTP against it.
2. Decide which component fits your need: ZED for certification, Lean for process improvement, Innovative for incubation, IPR or design support.
3. Register on the component portal — zed.msme.gov.in for ZED, lean.msme.gov.in for Lean, innovative.msme.gov.in for Incubation, IPR and Design; using your Udyam number and OTP.
4. For ZED: take the ZED pledge to receive the Rs 10,000 joining reward, then apply for Bronze, Silver or Gold certification, complete the self-assessment, pay the balance certification cost after subsidy, and undergo assessment by the certification body.
5. For Lean: register, complete the free Basic level introductory training and consultancy, then progress to Intermediate and Advanced levels with an empanelled lean consultant while the government meets 90% of the consultancy cost.
6. For IPR: apply on innovative.msme.gov.in with your filing receipts and grant papers, and claim reimbursement against the notified ceilings.
7. For Incubation and Design: submit the idea or design problem through an approved Host Institute or design partner, which forwards it for evaluation and sanction.
8. Track the application and the payment on the same portal, and raise a grievance on champions.gov.in if it stalls.

How much benefit does the MSME Champions Scheme provide?

MSME Sustainable (ZED)

Because of the joining reward, Bronze certification is effectively free. For Silver and Gold the reward is adjusted against the cost and the subsidy applies to the balance.

MSME Competitive (Lean)

• 90% subsidy on the implementation cost of consultant fees.
• Basic level training and consultancy at no cost to the MSME.
• Additional 5% government contribution for MSMEs registering through an industry association or OEM after completing all levels.
• Rs 5,000 per MSME paid to the association or OEM after all stages of the lean intervention are completed.

MSME Innovative

• Incubation: up to Rs 15 lakh per idea, and up to Rs 1 crore for relevant plant and machinery at the host institute.
• IPR reimbursement: up to Rs 5 lakh for a foreign patent, Rs 1 lakh for a domestic patent, Rs 2 lakh for GI registration, Rs 15,000 for a design registration and Rs 10,000 for a trademark.
• Design: expert design advice and cost-shared professional and student design projects for new product development and value addition.

Common reasons MSME Champions applications are rejected

• Udyam registration missing, lapsed or mismatched with the PAN and bank details submitted.
• Enterprise classification changed to large, taking it outside the MSME definition.
• Assessment not completed within the validity of the ZED application.
• IPR claim filed late or without the filing receipt and grant document.
• Bank details mismatch, which stalls the reimbursement even after approval.
• Incomplete lean levels, the additional association or OEM contribution is payable only after all stages are finished.

Help and grievance redressal

• CHAMPIONS portal: champions.gov.in; register a grievance, seek guidance and track resolution, in eleven languages through 69 state control rooms.
• CHAMPIONS email: champions@gov.in
• Ministry of MSME: Kartavya Bhawan Building 03, Kartavya Path, New Delhi 110011
• Component portals: zed.msme.gov.in, lean.msme.gov.in and innovative.msme.gov.in
• Udyam registration: udyamregistration.gov.in, the Ministry warns explicitly to beware of fake sites that charge for this free service
• MSME-Development and Facilitation Office (MSME-DFO) in your district, for in-person handholding

Udyam registration is free and MSME Champions benefits are credited directly to the enterprise bank account. No consultant is required to obtain them, and any agent charging to "get you certified" is selling something the government already subsidises.