Understanding the Impact of the RAMP Scheme on MSMEs

Running a small business in India often means wearing many hats, from upgrading machinery and finding new customers to keeping operations eco-friendly. That’s why the government introduced the ‘Raising and Accelerating MSME Performance’ scheme, or RAMP. The scheme aims to bring finance, technical know-how, and market support together in one place. In this blog, we’ll unpack how RAMP works, highlight some early success stories, and more.

RAMP at a Glance

The RAMP scheme is an initiative launched by the Ministry of MSME in 2022 in partnership with state governments and supported by the World Bank. RAMP provides grants to states and union territories to prepare Strategic Investment Plans, promoting Centre-State collaboration. Each state develops its roadmap for MSME sector development, making its game plan for what it does best. This allows for customised approaches based on local strengths and industrial clusters.

With the help of grants, technical assistance, and capacity building, the RAMP MSME framework brings together different support options for small businesses. These include loan guarantees, subsidies, and innovation funds that were previously scattered across different schemes.

Main Objectives of RAMP

At its core, the RAMP scheme aims to dismantle the common roadblocks that stall small businesses. Special attention is given to MSMEs led by women and SC/ST entrepreneurs, ensuring inclusive growth across all segments of society. Finally, it also enhances access to markets and creates important linkages through managed trade fairs, buyer-seller meets, and support for online platforms/adopt companies. Here are some of its objectives:

• Amplifies MSMEs’ chance to get access to markets, credit, and other financial resources by accelerating centre-state collaboration
• Enhances the effectiveness of existing MSME schemes from the Ministry of MSMEs for technology upgradation
• Increases new resources via additional credit guarantee funds and technology-upgrade subsidies, which make working-capital loans and new machinery easier to secure
• Improves access to research and incubators, recognising the risks involved when putting new processes on trial
• Enhances the effectiveness of Credit Guarantee Trust for Micro & Small Enterprises (CGTMSE), which enables MSMEs to secure term machinery and equipment loans without collateral

Progress Made So Far

Early results demonstrate the RAMP scheme’s potential through actual, measurable outcomes according to [2024-2025 Report]:

• Universal State Participation
  All 36 States and Union Territories have signed up for RAMP, and each has received a ₹5 crore grant to devise their Strategic Investment Plan (SIP).
   
• Strategic Investment Plans Submitted
  34 out of 36 States/UTs submitted their SIPs, providing roadmaps for MSME development in their respective areas.
   
• Major Grant Approvals
  A total of ₹2,966.144 crore has been sanctioned against approved project proposals across the 34 SIPs. The first funds have been released to implement the initiatives.
• COVID-19 Pandemic Support

In a landmark step of support and relief, the government doubled the Ministry's budget allocation (FY 2021-22), providing a much-needed boost to the MSME sector.

• TEAM Portal Launch
  The Trade Enablement and Marketing Initiative (TEAM) portal is live, and MSMEs can now register to gain access to digital commerce.
   
• Seller Network Participant (SNP) Empanelment
  To date, 21 Seller Network Participants (SNP) have been empanelled, and MSMEs have begun registering on the TEAM portal.

Why Does RAMP Work?

What makes RAMP unique is its systematic approach. Rather than treating finance, technology, and market access as disconnected elements, the RAMP scheme integrates them using coordinated state-backed plans. This has the advantage of accountability, as funds are released in amounts accumulating toward specific performance goals, and provides certainty that the businesses receive culture and plans to grow and compete.

For entrepreneurs, there is a clear message: upgrading your machinery is not enough unless you can find buyers and keep up with environmental regulations. RAMP also provides the incentive for companies to think about growth in a more comprehensive way instead of just fixing things incrementally.

Accelerate Your Projects with Quick Loans

Even with RAMP’s robust framework, you might hit a cash-flow gap between plan approval, grant disbursal, and project rollout. That’s where NBFCs like Poonawalla Fincorp can help. Our tailored Business Loan and MSME Loan offerings deliver funds quickly, so you can pay for new machinery or stock raw materials without waiting for subsidies. We also provide flexible working capital and equipment-finance options to bridge short-term needs.

For transport-focused enterprises, our Commercial Vehicle Loan makes it easy to expand your fleet without draining reserves. By pairing RAMP’s long-term support with fast, custom liquidity solutions, you keep projects on track and avoid unnecessary downtime.

To Conclude

India’s MSME sector is standing at a turning point. With the RAMP MSME initiative, small business owners now have a real opportunity to access modernisation, competition, and sustainable practices.

If you are thinking of upgrading machinery, testing a pilot process, or exploring new markets, consider a customised Business Loan from Poonawalla Fincorp to help fill the gaps in your funding sources. Combining government support with customised funding can realise your growth goals—contact us today, and let's plan for your business success.

Frequently Asked Questions

1. What is the purpose of the MSME scheme?

The objective of MSME schemes is to encourage the growth and competitiveness of micro, small, and medium enterprises through financial assistance, technical support, and market access.

2. Who is eligible for MSME funding?

Any enterprise registered under the Udyam MSME portal and fulfilling the investment and turnover thresholds specified by the government for micro, small, or medium enterprises is eligible for MSME funding.

3. Who is responsible for MSME?

In India, the Ministry of Micro, Small and Medium Enterprises oversees the functioning of MSMEs across the country. Their promotion and development primarily lie with the State Governments, though the Government of India does provide support as well.

4. What are the different types of MSMEs?

MSMEs are categorised into three classifications—micro, small, and medium enterprises—based on thresholds for their plant, machinery or equipment, and annual turnover.