MSME Ministry Accelerates Green MSME Transformation Through MSE GIFT Scheme Under RAMP

New Delhi | July 16th 2025 — In a move to promote sustainable industrial practices and climate-friendly growth, the Ministry of Micro, Small and Medium Enterprises (MSME) has launched the MSE Green Investment Financial Technology (MSE GIFT) Scheme under the flagship RAMP (Raising and Accelerating MSME Performance) programme. This initiative aims to help micro and small enterprises transition toward cleaner, energy-efficient operations by offering concessional finance and credit guarantees to invest in green technologies.

A key feature of the scheme is the provision of a 2% annual interest subvention for five years on loans of up to ₹2 crore, along with credit guarantee support worth ₹125 crore. These incentives are designed to ease the financial burden for MSMEs seeking to adopt environmentally sustainable solutions such as renewable energy systems, efficient waste management, and energy-saving machinery.

The scheme focuses on a broad spectrum of green investments, including solar rooftop systems, biomass energy, LED upgrades, green certifications like ZED and ISO 14001, and pollution-reducing technologies. It is particularly relevant for enterprises operating in sectors where environmental compliance is becoming increasingly essential for accessing global markets and government procurement opportunities.

MSE GIFT is integrated within the RAMP framework — a ₹6,000 crore initiative co-funded by the World Bank — which seeks to improve MSME competitiveness, innovation, and sustainability. By promoting climate-resilient practices and supporting digital and green transformation, the scheme directly contributes to India’s broader commitment to Net Zero emissions by 2070.

The MSME Ministry is collaborating with SIDBI, public sector banks, state MSME departments, and development institutes to ensure effective outreach and implementation. Application support is also being provided through the Udyam Registration Portal and ZED Certification platform, along with facilitation for green audits and compliance processes.

Through the MSE GIFT Scheme, the government aims to build a more inclusive and environmentally responsible MSME ecosystem. It reflects India’s strategic focus on positioning its small businesses as global suppliers that are not just cost-effective but also climate-conscious and future-ready.