RAMP Programme: Strengthening India’s MSME Ecosystem Through Reform, Credit and Green Transition

Why in News ?

The Ministry of Micro, Small and Medium Enterprises organised the fifth meeting of the National MSME Council in New Delhi to review the progress of the World Bank–supported RAMP Programme. The meeting assessed implementation milestones, Centre–State coordination, and reforms aimed at strengthening India’s MSME ecosystem.

Background and Context

Micro, Small and Medium Enterprises (MSMEs) are the backbone of India’s economy:

• Contribute ~30% to GDP
• Account for nearly 45% of exports
• Provide employment to over 11 crore people

Despite their significance, MSMEs face structural challenges:

• Limited access to formal credit
• Delayed payments
• Technological gaps
• Weak integration into global supply chains
• Environmental compliance pressures

To address these systemic issues through structured reforms, the Government launched the Raising & Accelerating MSME Performance (RAMP) Programme in 2022.

About RAMP Programme

The Raising & Accelerating MSME Performance (RAMP) Programme:

• Launched in 2022
• Implemented over 2022–23 to 2026–27
• Assisted by the World Bank
• Implemented by the Ministry of MSME

It focuses on improving market access, credit flow, institutional reforms, governance strengthening, and green transformation. The National MSME Council functions as the administrative and functional body overseeing implementation. States receive grants under RAMP for preparing Strategic Investment Plans (SIPs).

Objectives of the RAMP Programme

1. Improving access to market and credit for MSMEs
2. Strengthening institutional capacity at Central and State levels
3. Enhancing Centre–State linkages
4. Addressing delayed payments
5. Promoting green and sustainable MSMEs

Key Components and Sub-Schemes Under RAMP

1. MSME GIFT Scheme

(MSME Green Investment and Financing for Transformation)

• Encourages adoption of green technologies
• Provides interest subvention
• Offers credit guarantee support

Significance: Supports decarbonisation and sustainable industrial practices.

2. MSE SPICE Scheme

(MSE Scheme for Promotion and Investment in Circular Economy)

• Promotes circular economy projects
• Provides credit subsidy
• Encourages resource efficiency and waste reduction

Goal: Align MSME sector with India’s net-zero target by 2070.

3. MSE ODR Scheme

(Online Dispute Resolution for Delayed Payments)

• Technology-driven legal support mechanism
• Uses IT tools and Artificial Intelligence
• Addresses delayed payment disputes

Significance: First-of-its-kind initiative combining legal reform and digital governance for MSMEs.

Institutional Architecture

The National MSME Council:

• Reviews programme performance
• Facilitates coordination between Centre and States
• Ensures accountability and reform implementation

RAMP also strengthens:

• Data systems
• Monitoring frameworks
• State-level reform incentives

Significance of the RAMP Programme

1. Structural Reform of MSME Ecosystem

Unlike traditional subsidy-based schemes, RAMP focuses on institutional and systemic reform.

2. Strengthening Centre–State Partnership

By linking grants to reform performance and SIP preparation, RAMP promotes cooperative federalism.

3. Improving Credit Flow

Through green financing, credit guarantees, and institutional strengthening, RAMP aims to reduce MSMEs’ dependence on informal credit.

4. Addressing Delayed Payments

Delayed payments severely affect working capital cycles of MSMEs. The ODR mechanism introduces digital, time-bound resolution.

5. Green Transition of MSMEs

With global supply chains increasingly emphasizing ESG compliance, RAMP prepares Indian MSMEs for sustainable competitiveness.

Challenges

• Variations in State-level institutional capacity
• Slow adoption of digital dispute resolution
• Limited awareness among micro enterprises
• Monitoring performance-based grant utilisation
• Ensuring measurable outcomes

Way Forward

• Capacity-building at district-level MSME facilitation centres
• Wider outreach and awareness campaigns
• Faster digitisation of compliance frameworks
• Linking RAMP reforms with export promotion initiatives
• Periodic independent evaluation of programme impact