What is the MSME TEAM Initiative?

About MSME Trade Enablement and Marketing Initiative (MSME-TEAM Initiative):

• It aims at assisting five lakh Micro, Small and Medium Enterprises (MSMEs) to onboard the Open Network Digital Commerce (ONDC) platform, through awareness workshops which will include hand-holding assistance for onboarding onto ONDC.
• It aims to provide financial assistance to Micro and Small Enterprises (MSEs) through Seller Network Participants, for catalogue preparation, account management, logistics, and packaging material and design. 
• Of the total five lakh MSEs to be benefited, two and a half lakh MSEs would be women owned
• The objective of the Initiative is to provide assistance to MSEs all across the country.
  • However, awareness workshops will be conducted preferably in Tier 2 and Tier 3 cities and MSME Clusters, for greater outreach, especially among women and SC/ST owned MSMEs.
• The MSME TEAM Initiative, being a sub-scheme, is for a period of three years upto March 2027.
• However, MSMEs can continue to onboard onto ONDC, which is an open network.

Key Facts about RAMP Scheme:

• It is a World Bank-assisted program that aims to improve the performance of MSMEs in India.
• It is a Central Sector Scheme launched on 30 July, 2022, by the Ministry of MSME.
• The RAMP scheme has a number of objectives, including:
  • Improving access to markets and credit for MSMEs
  • Strengthening institutions and governance at the central and state levels
  • Improving center-state linkages and partnerships
  • Addressing issues of delayed payments
  • Greening of MSMEs
• The National MSME Council has been set up by the Ministry to work as an administrative and functional body of the RAMP Programme.
• Sub schemes under RAMP:
  • MSME GIFT Scheme: MSME Green Investment and Financing for Transformation Scheme intends to help MSMEs adopt green technology with interest subvention and credit guarantee support.
  • MSE SPICE Scheme:The MSE Scheme for Promotion and Investment in Circular Economy aims to support circular economy projects, which will be done through credit subsidy and will lead to realising the dream of MSME sector towards zero emissions by 2070.
  • MSE ODR Scheme: The MSE Scheme on Online Dispute Resolution for Delayed Payments is a first of its kind scheme to synergise legal support with modern IT tools and Artificial Intelligence to address the incidences of delayed payments for Micro and Small Enterprises.

What is ONDC?

• It is a network based on open protocol and will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking, and travel, among others, to be discovered and engaged by any network-enabled application.
• Specifically, ONDC is a set of protocols and specifications that allow different e-commerce platforms to connect and interoperate with each other. 
• The platform aims to create new opportunities, curb digital monopolies, and support MSMEs and small traders by helping them get on online platforms.
• It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
• It seeks to democratise digital or electronic commerce, moving it from a platform-centric model to an open-network.
• It enables sellers and buyers to be digitally visible and transact through an open network, regardless of what platform or application they use.
• Through ONDC, merchants will be able to save their data to build credit history and reach consumers.