RAMP Scheme Overview – The Micro, Small and Medium Enterprises (MSMEs) sector has long been a cornerstone of India’s economy, contributing to approximately 48% of the country’s exports. In recent years, the number of MSME exports has surged due to a growing wave of Indian entrepreneurs. At the “Udyami Bharat program” in New Delhi, Prime Minister Narendra Modi introduced the much-anticipated Raising and Accelerating MSME Performance Scheme (RAMP) 2025, aimed at enhancing the capabilities of this vital sector. Below, we delve into the features, benefits, and details pertaining to this scheme, which is set to transform MSME operations nationwide.
Introduction to RAMP Scheme
The RAMP initiative is a new central government scheme with a duration of five years and a total project budget of INR 6,000 crore. Funding is considerably supported by the World Bank, contributing a significant amount to help boost MSME performance across various sectors. The scheme is formulated based on the recommendations from the export committee report led by UK Sinha, emphasizing regulatory and financial reforms, as well as firm-level support to ensure effective implementation in key states including Gujarat, Maharashtra, Punjab, Rajasthan, and Tamil Nadu.
Advantages of the RAMP Scheme
In its initial phases, RAMP has successfully facilitated the digital transfer of over Rs 500 crore to around 18,000 MSMEs. Additionally, more than Rs 1,400 crore has been dispensed from the ₹50,000 crore Self-Reliant India Fund. The significance of MSMEs in India cannot be overstated, as they contribute one-third of the nation’s GDP; effectively, for every ₹100 earned, ₹30 comes from the MSME sector. As RAMP unfolds over the next five years, it is set to magnify the impact of existing MSME initiatives nationwide.
- The World Bank has stated that RAMP aims to elevate the performance of approximately 5.55 lakh MSMEs, with oversight and policy evaluations conducted by a National MSME Council led by the Minister for MSMEs.
- Additionally, PM Modi has launched the ‘Capacity Building of First-Time MSME Exporters’ (CBFTE) scheme to enhance MSME product standards and increase competitiveness in the global market.
Key Features of the RAMP Scheme
With an investment of around ₹6,000 crore, the RAMP initiative is designed to bolster the execution capacity of MSMEs across India. The scheme aims to synergize with existing programs like the Atmanirbhar Bharat Abhiyan to foster innovation and entrepreneurship among the youth. It emphasizes quality standards in businesses and offers training and support to aspiring entrepreneurs, helping them navigate the challenges of starting their own enterprises without fear of failure.
Three New schemes launched today by Sh @narendramodi at #VigyanBhawan in New Delhi.
Raising and Accelerating #MSME Performance (#RAMP ) scheme
Capacity Building of First-Time MSME Exporters (#CBFTE ) scheme
Prime Minister’s #employment Generation Programme (#PMEGP) @minmsme pic.twitter.com/jZn0L3nCb4 — Laghu Udyog Bharati (Delhi) (@Lub_delhi) June 30, 2024
Roles of the RAMP Scheme
This initiative offers crucial support to entrepreneurs through several key roles:
- **Policy Provider**: Enhancing capacity for informed policymaking to improve the effectiveness and efficiency of MSME support programs.
- **Knowledge Provider**: Benchmarking and sharing best practices while utilizing international experiences to guide development.
- **Technology Provider**: Facilitating access to cutting-edge technology, promoting digital transformation through advances in Artificial Intelligence, Data Analytics, Internet of Things (IoT), and Machine Learning.
Eligibility Criteria for Participation
To qualify for the RAMP scheme, applicants must meet the following conditions:
- The applicant must be a permanent resident of India.
- They should possess relevant knowledge relating to small and marginal businesses in India.
- Entrepreneurs who wish to benefit from this scheme must apply based on the established eligibility criteria by Indian Government authorities.
How to Apply for RAMP Scheme
The RAMP initiative is rolled out by the Prime Minister of India, aimed at equipping entrepreneurs with essential knowledge about operating small and marginal businesses effectively. Interested entrepreneurs can apply for this scheme to gain the necessary insights to launch and sustain their businesses successfully.