Raising and Accelerating MSME Productivity (RAMP)
Introduction
Whenever we talk about the backbone of India’s economy, one sector stands out — the Micro, Small, and Medium Enterprises (MSMEs). They provide employment, support exports, and contribute significantly to GDP. Yet, MSMEs often face challenges like outdated technology, difficulty in accessing finance, and the chronic problem of delayed payments.
To address these gaps, the Government of India launched RAMP in 2022, in partnership with the World Bank, as a Central Sector Scheme.
Quick Facts about RAMP
- Purpose: To enhance MSME performance by promoting technology upgradation, digitization, innovation, and market access with the active role of States.
- Tenure: 2022–23 to 2026–27.
- Funding:
- USD 500 million – World Bank loan
- USD 308 million – Government of India contribution
- Nature: Programme-for-Results (P for R) approach – i.e., disbursement of funds is linked to measurable outcomes.
Objectives of RAMP
- Strengthen Centre-State collaboration in MSME development.
- Improve the effectiveness of existing MoMSME schemes for technology upgradation.
- Strengthen the Receivable Financing Market (to address delayed payments).
- Enhance CGTMSE (Credit Guarantee Trust for Micro & Small Enterprises), with focus on:
- Greening initiatives of MSMEs
- Women-owned MSMEs
- Reduce delayed payments.
- Align MSME strengthening with recommendations of the U K Sinha Committee, KV Kamath Committee, and PMEAC.
Key Roles of RAMP
- Policy Provider → Promotes evidence-based policies to make MSME interventions more effective and sustainable.
- Knowledge Provider → Benchmarks, shares, and demonstrates best practices, using global experience.
- Technology Provider → Gives MSMEs access to cutting-edge technology like AI, IoT, Data Analytics, driving digital transformation.
Aims of RAMP
- Technology upgradation and resolving delayed payments, while encouraging greening of MSMEs.
- Improve MSMEs’ market and credit access.
- Strengthen institutions and governance at Centre and State levels.
- Enhance Centre-State linkages and partnerships.
Sub-Schemes under RAMP
Recently launched 3 major sub-schemes:
- MSE GIFT Scheme – MSME Green Investment and Financing for Transformation: Helps MSMEs adopt green technology with interest subvention + credit guarantee support.
- MSE SPICE Scheme – Scheme for Promotion and Investment in Circular Economy: Supports circular economy projects, aiming for zero emissions by 2070.
- MSE ODR Scheme – Online Dispute Resolution for Delayed Payments: Uses IT tools and Artificial Intelligence to resolve payment disputes quickly.
Implementation Strategy
- Strengthening Institutions and Governance of MSME programmes.
- Supporting market access, firm capabilities, and finance.
- Strategic Investment Plans (SIPs):
- Prepared with States/UTs.
- Identify MSME gaps, mobilize enterprises, set milestones, allocate budgets.
- Priority areas → renewable energy, rural/non-farm enterprises, women-owned businesses.
- SIPs of 10 States approved: Tamil Nadu, Odisha, Sikkim, Maharashtra, UP, MP, Mizoram, Andhra Pradesh, Bihar, Karnataka.
Funding Flow
Funds flow through RAMP into MoMSME budget against Disbursement Linked Indicators (DLIs) → ensures that money is tied to actual improvements like competitiveness and market access.
Compliance & Monitoring
- RAMP ESSA (Environment and Social Systems Assessment): Ensures enterprises comply with environmental and social standards (as required by World Bank).
- Monitoring bodies:
- National MSME Council – Headed by Union MSME Minister (policy + monitoring).
- RAMP Programme Committee – Headed by Secretary, MoMSME (specific deliverables).
- Programme Management Units (PMUs) – At national & state level, staffed with industry experts for day-to-day execution.
Conclusion
In short, RAMP is not just a financial scheme, it is a comprehensive reform programme for MSMEs. It addresses technology, finance, environment, governance, and even dispute resolution. By linking funds to results and involving both Centre and States, it aims to make India’s MSMEs globally competitive, sustainable, and resilient.