MSME Competitive (LEAN) Scheme
Guiding MSMEs to boost efficiency, cut waste, and embrace lean manufacturing practices.
MSME Competitive (LEAN) Scheme is an internationally acclaimed pathway to transform any organisation into a sharper, more competitive, and profitable enterprise — simply by reducing waste.
At its core, LEAN rests on two timeless pillars of production management: Just-in-Time (JIT), which ensures the right resource is available at the right moment, and Jidoka, which empowers both people and machines to detect and fix errors instantly. Together, they unlock higher quality, greater productivity, improved safety, and ultimately, stronger profits.
LEAN also draws from the Japanese M3 Philosophy — Muda (waste), Mura (imbalance), and Muri (overburden) — to balance production flow and eliminate inefficiencies. Strengthened by world-proven tools like 5S, Kanban, Poka-Yoke, and Cellular Layouts, it creates an ecosystem where every step of the process adds value.
Recognising its power to reshape industries, the Ministry of MSME, Government of India, has introduced the MSME Competitive LEAN Scheme — a national mission to boost efficiency, productivity, and resilience in Indian MSMEs, preparing them to compete — and win — in the global marketplace.
The MSME Competitive (LEAN) Scheme is designed to sharpen the competitive edge of Indian MSMEs by embedding efficiency, quality, and innovation into their DNA. Its objectives include:
- Optimise resources and space — ensuring every square foot and every asset delivers maximum value.
- Enhance quality — building products and services that inspire trust and satisfaction.
- Introduce Industry 4.0 practices — preparing enterprises for the future of smart, digital, and connected manufacturing.
- Build knowledge and skills — empowering the workforce with continuous learning and modern expertise.
- Reduce rejection rates — minimising errors and rework for smoother, cost-effective production.
- Boost productivity — achieving more output with the same effort, time, and investment.
- Increase profitability — turning efficiency gains into stronger bottom lines.
- Enable digital empowerment — driving MSMEs toward smarter, tech-enabled growth.
- All MSMEs registered under the Udyam Registration portal.
- Manufacturing enterprises at any operational stage.
The MSME Competitive (LEAN) Scheme helps MSMEs increase efficiency, reduce waste, and enhance product quality while lowering costs and production lead times. It also offers cost savings, process improvements, and greater competitiveness in domestic and global markets.
1. Financial Benefits
- Subsidised cost for Lean implementation (percentage varies based on MSME category).
- Possible state-specific incentives for Lean adoption.
- Cost savings through improved efficiency and waste reduction.
2. Process Benefits
- Streamlined production processes.
- Reduced production lead time.
- Improved product quality and consistency.
- Better resource utilisation (labour, material, machinery).
- Enhanced customer satisfaction.