Launched in 2016 by the Ministry of Micro, Small and Medium Enterprises (MSME), the NSSH aims to empower Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs. It facilitates their participation in public procurement and enhances business capacities through capital subsidies, technical training, and market linkages. The scheme is implemented by the National Small Industries Corporation (NSIC).
Strategic Objectives and Interventions
- Targeted Procurement: Aims to meet the mandatory 4% public procurement target from SC/ST-owned Micro and Small Enterprises (MSEs) as per the Public Procurement Policy, 2012.
- Financial Support: Includes the Special Marketing Assistance Scheme (SMAS) for trade fair participation and subsidies for credit rating fees to lower bank interest rates.
- Capacity Building: Offers specialized management and technical training in collaboration with institutions like IITs and NIELIT.
- Digital Integration: Facilitates free registration and cataloging on the Government e-Marketplace (GeM) to bypass intermediaries and secure government contracts directly.
- Impact: Procurement from SC/ST enterprises surged from ₹99.37 crore (2015-16) to ₹3,738.34 crore (2025-26), benefiting over 1.79 lakh entrepreneurs.
IASPOINT Booster Facts
- Procurement Policy Order, 2012: Mandates 25% annual procurement from MSEs, with sub-targets of 4% for SC/ST and 3% for women entrepreneurs.
- NSIC: Established in 1955, it is a CPSE under the Ministry of MSME tasked with fostering MSME growth.
- Mandatory Registration: Udyam registration is essential for accessing NSSH benefits.
- GeM: Launched in 2016 under the Ministry of Commerce and Industry for transparent public procurement.