The National SC-ST Hub (NSSH) Scheme, launched in 2016 by the Ministry of Micro, Small and Medium Enterprises (MSME), empowers Scheduled Caste and Scheduled Tribe entrepreneurs by facilitating their participation in public procurement and enhancing their business capacities. The scheme provides structural support such as capital subsidies, technical training, market linkages, and Government e-Marketplace (GeM) onboarding to help SC/ST-owned micro and small enterprises (MSEs) scale up and compete effectively. Ground-level success stories from states like Jharkhand, Gujarat, and Rajasthan highlight how NSSH assistance enabled machinery upgrades, market expansion, and the successful securing of government tenders. Consequently, public procurement from SC/ST enterprises has risen from ₹99.37 crore in 2015-16 to ₹3,738.34 crore in 2025-26, directly benefiting over 1.79 lakh SC/ST entrepreneurs.
Core Objectives and Implementation Framework
The NSSH operates as a targeted intervention strategy to bridge the gap between reserved public procurement quotas and the actual capacity of SC/ST entrepreneurs.
Strategic Objectives
- To achieve the mandatory 4% public procurement target from SC/ST-owned MSEs as laid down in the Public Procurement Policy for Micro and Small Enterprises Order, 2012.
- To encourage a collaborative ecosystem among the Ministry of MSME, central ministries, Public Sector Undertakings (PSUs), and industry chambers.
- To build entrepreneurial capacity through specialized skill development programs and vocational training.
Implementing Agency
The National Small Industries Corporation (NSIC), a Public Sector Enterprise under the Ministry of MSME, serves as the nodal implementing agency for the hub. It manages the rollout of services through specialized NSSH offices set up across various commercial clusters in India.
Key Interventions and Support Mechanisms
The scheme offers financial, technical, and logistical interventions to eliminate barriers to entry for marginalized entrepreneurs.
Financial Assistance and Subsidies
- Special Marketing Assistance Scheme (SMAS): Provides financial support for participation in domestic and international exhibitions, trade fairs, and buyer-seller meets to enhance market exposure.
- Subsidy on Credit Rating: Reimburses a large portion of the fee charged by rating agencies, helping SC/ST units secure bank credit at lower interest rates.
Capacity Building and Digital Onboarding
- Skill Development: Collaborates with premier institutions like IITs, NIELIT, and Central Footwear Training Institutes to provide tailored management and technical training.
- GeM Registration: Facilitates zero-cost registration and cataloging on the Government e-Marketplace (GeM) portal, allowing entrepreneurs to pitch directly for government contracts without intermediate brokers.
Empirical Growth and Procurement Trajectory
The operational efficiency of the hub over the past decade is visible in the growth of procurement values.
Decadal Procurement Quantum Comparison
The structural interventions of NSSH have altered the volume of goods and services sourced by central ministries and CPSEs from SC/ST vendors.
| Financial Year | Procurement Value (in ₹ Crore) | Total Beneficiaries Covered |
| 2015-16 | 99.37 | Base Year / Initial Phase |
| 2025-26 | 3,738.34 | Over 1.79 Lakh Entrepreneurs |
IASPOINT Booster Facts for UPSC
- Public Procurement Policy Order, 2012: Mandates that Central Ministries, Departments, and Public Sector Undertakings (PSUs) must procure a minimum of 25% of their total annual value of goods or services from MSEs. Within this 25%, a sub-target of 4% is earmarked for procurement from MSEs owned by SC/ST entrepreneurs, and 3% for MSEs owned by women entrepreneurs.
- National Small Industries Corporation (NSIC): Established in 1955, it is an ISO certified Government of India Enterprise under the Ministry of MSME. It works to promote, aid, and foster the growth of MSMEs in the country.
- MSME Classification (Revised 2020):
- Micro: Investment up to ₹1 crore and Turnover up to ₹5 crore.
- Small: Investment up to ₹10 crore and Turnover up to ₹50 crore.
- Medium: Investment up to ₹50 crore and Turnover up to ₹250 crore.
- Udyam Registration Portal: A fully online, paperless, and free-of-cost portal launched by the Ministry of MSME for the formal registration of MSMEs. Holding an Udyam registration is mandatory to access benefits under the NSSH scheme.
- Government e-Marketplace (GeM): Launched in 2016 as a one-stop online marketplace for the transparent procurement of common-use goods and services required by various government departments, organization, and PSUs. It falls under the Ministry of Commerce and Industry.