The Ministry of Micro, Small and Medium Enterprises (MSME) has taken a significant step towards inclusive economic growth by implementing the National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme, a comprehensive initiative designed to promote entrepreneurship among Scheduled Castes (SCs) and Scheduled Tribes (STs). As per the Press Information Bureau release dated December 22, 2025, the scheme not only aims to strengthen entrepreneurial capabilities within SC ST communities but also seeks to fulfil the mandated 4 percent procurement from SC ST-run Micro and Small Enterprises (MSEs) under the Public Procurement Policy.

The NSSH Scheme reflects the Government of India’s commitment to social equity, economic empowerment, and inclusive development. By combining policy mandates with practical support mechanisms, the scheme addresses long-standing structural challenges faced by SC ST entrepreneurs in accessing markets, finance, and government procurement opportunities.

Background and Rationale of the NSSH Scheme

Entrepreneurship within SC ST communities has historically faced multiple barriers, including limited access to capital, lack of market exposure, insufficient institutional support, and low participation in formal procurement systems. Recognising these challenges, the Ministry of MSME latest news highlights the introduction of the National Scheduled Caste and Scheduled Tribe Hub as a targeted intervention to bridge these gaps.

The NSSH Scheme is designed to ensure that SC ST entrepreneurs are not only encouraged to start and grow businesses but are also able to participate meaningfully in government-led economic activities. The emphasis on fulfilling the SC ST MSE procurement policy is particularly significant, as public procurement represents a large and stable source of demand for MSMEs in India.

Mandated 4 Percent Procurement from SC ST MSEs

A central objective of the NSSH Scheme is to ensure compliance with the Public Procurement Policy, which mandates that 4 percent of total procurement by central ministries, departments, and public sector undertakings should be sourced from SC ST-run MSEs.

Despite the existence of this mandate, many SC ST enterprises have historically struggled to access government procurement due to lack of awareness, procedural complexities, and limited capacity. The NSSH Scheme directly addresses these issues by providing institutional support, simplifying access pathways, and creating awareness about procurement opportunities.

By operationalising this mandate, the scheme not only boosts demand for SC ST enterprises but also creates a level playing field, enabling them to compete more effectively in public procurement markets.

Promoting SC ST Entrepreneurship through Capacity Building

One of the most critical components of the MSME SC ST entrepreneurship initiative under NSSH is capacity building. Entrepreneurship is not merely about access to finance or markets; it also requires skills, knowledge, and confidence to operate in competitive environments.

The NSSH Scheme offers structured capacity-building programmes that focus on business management, financial literacy, quality standards, compliance requirements, and digital capabilities. These programmes are designed to enhance the overall competitiveness of SC ST enterprises, enabling them to meet the expectations of government buyers and private sector clients alike.

Through training workshops, mentoring sessions, and knowledge-sharing platforms, the scheme empowers entrepreneurs to make informed decisions and scale their businesses sustainably.

Market Linkage Activities and Vendor Development

Access to markets remains one of the most significant challenges for small enterprises. The NSSH Scheme addresses this through dedicated market linkage activities and Special Vendor Development Programs (VDPs).

These initiatives facilitate direct interactions between SC ST entrepreneurs and potential buyers, including government departments, public sector units, and large private enterprises. Vendor development programmes help entrepreneurs understand procurement processes, tender requirements, and quality expectations, reducing entry barriers into formal markets.

By strengthening these linkages, the scheme ensures that SC ST businesses are not isolated but integrated into mainstream economic networks.

Financial Assistance and Institutional Support

Financial constraints often limit the growth potential of SC ST enterprises. To address this, the NSSH Scheme provides financial assistance through the Single Point Registration Scheme (SPRS), which enables SC ST MSEs to register with government procurement agencies and avail benefits such as exemption from tender fees and earnest money deposits.

Additionally, the scheme leverages government-supported e-commerce platforms, allowing SC ST businesses to showcase and sell their products to a wider audience. This digital integration significantly expands market access and reduces dependency on traditional intermediaries.

The combination of financial assistance and institutional facilitation strengthens the ability of SC ST entrepreneurs to participate confidently in government procurement processes.

Awareness Generation and Outreach Initiatives

Awareness is a critical factor in the success of any government scheme. The NSSH Scheme places strong emphasis on awareness generation through conclaves, workshops, awareness programmes, and vendor development events conducted across multiple locations in India.

These outreach initiatives aim to inform SC ST entrepreneurs about the benefits, eligibility criteria, and application processes under the scheme. By reaching entrepreneurs at the grassroots level, the Ministry ensures that the intended beneficiaries are well-informed and able to access the support available to them.

The scheme also utilises social websites and digital platforms for wider dissemination of information, ensuring that awareness efforts are scalable and inclusive, particularly for younger and digitally connected entrepreneurs.

Special Marketing Assistance Scheme under NSSH

An important component of the NSSH ecosystem is the Special Marketing Assistance Scheme (SMAS), implemented through the National Small Industries Setup and Organisations framework. Over the last five years, this initiative has provided substantial support to SC ST entrepreneurs by facilitating their participation in national and international exhibitions.

According to official data, 3,929 SC ST entrepreneurs have been assisted under SMAS, with total financial support amounting to Rs. 36.41 crore (US$ 4.4 million). Participation in exhibitions plays a crucial role in enhancing visibility, building brand recognition, and accessing new markets.

These opportunities enable SC ST enterprises to showcase their products, understand market trends, and engage with buyers from diverse geographies, thereby improving their growth prospects.

Enhancing Competitiveness in Domestic and Global Markets

The interventions under the NSSH Scheme are strategically designed to improve the competitiveness of SC ST enterprises in both domestic and international markets. Exposure to exhibitions, buyer-seller meets, and digital platforms helps entrepreneurs benchmark their products against global standards.

This exposure encourages innovation, quality improvement, and adoption of best practices. Over time, such capacity enhancement contributes to the creation of resilient and competitive enterprises capable of sustaining growth in dynamic market environments.

Role of Digital Platforms and Social Media

The use of digital tools and social websites for information dissemination is a forward-looking aspect of the NSSH Scheme. Digital platforms allow for real-time communication, wider reach, and cost-effective outreach, making it easier to connect with the target group.

By leveraging digital channels, the Ministry ensures that information about government schemes for SC ST entrepreneurs reaches even remote and underserved regions. This approach also supports transparency and timely updates, enhancing trust and participation.

Strengthening Inclusive Growth through MSMEs

MSMEs are widely recognised as the backbone of the Indian economy, contributing significantly to employment generation, exports, and industrial output. By focusing on SC ST entrepreneurs, the NSSH Scheme strengthens the inclusive growth agenda within the MSME sector.

Empowering SC ST enterprises not only improves individual livelihoods but also contributes to broader socio-economic development. It helps reduce inequality, promotes social mobility, and ensures that the benefits of economic growth are more evenly distributed.

Alignment with National Development Goals

The NSSH Scheme aligns closely with national priorities such as Atmanirbhar Bharat, inclusive development, and Make in India. By supporting SC ST entrepreneurs, the scheme enhances domestic manufacturing capabilities and strengthens local supply chains.

The focus on public procurement ensures that government spending acts as a catalyst for inclusive industrial growth, creating a virtuous cycle of demand, production, and employment.

Long-Term Impact on SC ST Business Ecosystem

Over the long term, the NSSH Scheme is expected to contribute to the creation of a robust and self-sustaining SC ST business ecosystem. As enterprises gain experience, scale operations, and build networks, their reliance on government support is likely to decrease.

This transition from support to sustainability is a key indicator of success, reflecting the scheme’s emphasis on empowerment rather than dependency.

Challenges and Way Forward

While the progress under the NSSH Scheme is encouraging, challenges remain. These include the need for continuous capacity building, simplification of procurement processes, and greater coordination between central and state agencies.

Addressing these challenges will require sustained policy focus, stakeholder engagement, and feedback-driven improvements. Strengthening monitoring mechanisms and expanding outreach can further enhance the scheme’s effectiveness.

Conclusion

In conclusion, the National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme represents a comprehensive and impactful initiative by the Ministry of MSME to promote SC ST entrepreneurship and ensure compliance with the 4 percent procurement mandate from SC ST-run MSEs.

Through capacity building, market linkage activities, financial assistance, awareness programmes, and exhibition support, the scheme addresses critical barriers faced by SC ST enterprises. The assistance provided to thousands of entrepreneurs over the past five years underscores its tangible impact.

As the scheme continues to evolve, it holds the potential to transform the SC ST business landscape, strengthen inclusive growth, and reinforce the role of MSMEs as engines of equitable economic development in India.

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