Guide to the Procurement and Marketing Support (PMS) Scheme : Empowering MSMEs in 2025-26

Imagine you are an artisan from a small town in India. You craft exquisite wooden toys, each piece a testament to generations of skill. Your products are beautiful, durable, and unique. There’s just one problem: the only people who know about them are in your local community. You dream of seeing your toys in the bustling markets of Mumbai, the high-end stores of Delhi, or perhaps even in the hands of a child in London or New York. But how do you bridge the vast gap between your small workshop and the global marketplace?

This is a challenge faced by millions of Micro, Small, and Medium Enterprises (MSMEs) across India. They are the creators, the innovators, and the silent engines of our economy, yet they often struggle to find the right platforms to showcase their brilliance. They possess the skill to create but often lack the resources and knowledge to market and sell effectively.

Recognizing this critical gap, the Government of India, through the Ministry of MSME, has designed a powerful and strategic solution: the Procurement and Marketing Support (PMS) Scheme.

This article is designed to be the most comprehensive, deep-dive resource for any MSME entrepreneur looking to understand and leverage the full potential of the PMS scheme in the 2025-26 landscape. Whether you are just starting or looking to scale, this guide will demystify the scheme’s components, explain the financial assistance available, and provide a clear, step-by-step roadmap to unlock new opportunities for your business. We will explore its three core pillars: Market Access Initiatives, Capacity Building, and Retail Outlet Development, transforming this government policy from a mere document into a practical toolkit for your growth.

Decoding the MSME Landscape in 2025-26: Why Marketing Support is Critical

To understand the profound importance of the PMS scheme, we must first appreciate the world in which Indian MSMEs operate today. The period leading up to 2025-26 is not just another business cycle; it is a transformative era shaped by rapid digitalization, evolving global supply chains, and a renewed national focus on self-reliance.

The Unquestionable Might of MSMEs

MSMEs are, without exaggeration, the backbone of the Indian economy. Consider their contribution:

• They account for nearly 30% of India’s GDP.
• They contribute to almost 45% of the country’s total exports.
• They have created employment for over 11 crore people, making them the second-largest employer after agriculture.

These are not just statistics; they represent millions of livelihoods, families, and dreams. The government’s vision for a ‘Viksit Bharat’ (Developed India) by 2047 is intrinsically linked to the health, growth, and global competitiveness of this sector.

The Post-Pandemic Paradigm Shift

The global pandemic was a trial by fire for businesses worldwide, and MSMEs were hit particularly hard. However, it also accelerated key trends that are now defining the business landscape of 2025-26:

1. Digital Imperative: Businesses that could not operate online struggled to survive. Today, having a digital presence is not a choice; it’s a fundamental requirement. E-commerce, digital payments, and online marketing are the new frontiers.
2. Supply Chain Reimagination: Global disruptions led countries and large corporations to diversify their sourcing. This has created a massive opportunity for Indian MSMEs to integrate into global value chains, provided they meet international standards of quality and reliability.
3. The Rise of ‘Vocal for Local’: There is a growing consciousness among Indian consumers to support local products. This sentiment, championed by the government’s Atmanirbhar Bharat (Self-Reliant India) and Make in India initiatives, creates a fertile ground for domestic brands to flourish.

In this dynamic environment, simply manufacturing a good product is not enough. The ability to market it effectively, package it attractively, sell it on the right platforms, and connect with large buyers is what separates a struggling enterprise from a successful one. This is precisely where the PMS scheme intervenes, acting as a catalyst to help MSMEs navigate these new realities and seize the opportunities of 2025-26.

The Procurement and Marketing Support (PMS) Scheme – A 360-Degree View

Let’s break down the scheme into its simplest parts. Think of the PMS scheme as a comprehensive support system provided by the government to help you, the MSME owner, with one of the most crucial aspects of business: selling your products and services.

What is the PMS Scheme?

The Procurement and Marketing Support (PMS) Scheme is a flagship initiative of the Ministry of MSME designed to enhance the marketability and competitiveness of products and services created by Micro and Small Enterprises (MSEs). It does this by providing both financial assistance and educational support, helping MSEs to access new markets, adopt modern business practices, and build a stronger brand.

Core Objectives: The “Why” Behind the Scheme

For the 2025-26 period, the scheme’s objectives are more relevant than ever:

• To Forge New Market Connections: To actively help MSEs step out of their local boundaries by supporting their participation in national and international trade fairs, exhibitions, and MSME Expos.
• To Educate and Empower: To create awareness and build capacity among MSEs on vital topics like modern packaging technologies, import-export policies, the Government e-Marketplace (GeM) portal, and other subjects crucial for market development.

Eligibility: Are You Eligible to Apply?

The eligibility criteria are straightforward and designed to be inclusive.

The Udyam Registration is a simple, online, and free registration process that officially recognizes your enterprise as an MSME. It is the single most important document required to avail the benefits of the PMS scheme and many other government initiatives.

The Implementing Agencies: Who Manages the Scheme?

The scheme is not managed by a single central office. It is implemented through a network of field organizations, making it more accessible to MSMEs across the country. These include:

• The Office of the Development Commissioner (MSME) through its MSME Development Institutes (MSME-DIs) and Technology Centres.
• Other Ministry of MSME organizations like the National Small Industries Corporation (NSIC), Khadi and Village Industries Commission (KVIC), and the Coir Board.
• Departments and organizations of other Central and State Governments.

Pillar 1 – Market Access Initiatives: Taking Your Business to the World

This is the most direct and impactful component of the PMS scheme, designed to physically place your products in front of potential buyers.

3.1 Conquering New Markets: Participation in Trade Fairs & Exhibitions

A trade fair or exhibition is like a temporary supermarket of ideas and products for a specific industry. It’s where manufacturers, distributors, buyers, and industry experts gather under one roof. For an MSE, participating in such an event can be a game-changer.

Why are trade fairs so important?

• Visibility: You get to showcase your products to a large, relevant audience.
• Networking: You can connect with bulk buyers, exporters, distributors, and potential partners.
• Market Research: You can see what your competitors are doing, understand new trends, and get direct feedback from customers.
• Brand Building: A professional stall at a reputed fair builds credibility and trust.

Financial Support Under the PMS Scheme

The scheme provides a substantial subsidy to reduce the financial burden of participating in these events.

Important Note: An MSE can claim reimbursement for a maximum of two events in a financial year.

The 2025-26 Perspective: Choosing the Right Expo

As we move further into 2025-26, the nature of trade fairs is evolving. To get the best returns, MSEs should focus on:

• Niche Sector Expos: Instead of general fairs, look for expos focused on your specific industry, be it food processing, electronics, textiles, or healthcare.
• Technology and Innovation Fairs: Fairs that showcase new technologies and sustainable solutions are attracting serious global buyers.
• Export-Oriented Fairs: If you aim to go global, participating in international fairs or domestic fairs with high foreign participation is key.

A Step-by-Step Guide: How to Apply and Claim Your Subsidy

1. Identify the Right Event: Research upcoming trade fairs relevant to your industry.
2. Contact the Implementing Agency: Get in touch with your nearest MSME-DI or other implementing agency.
3. Submit Your Application: You will need to apply online through the official portal. Ensure you apply well in advance, preferably 30 days before the event.
4. Participate in the Event: Set up your stall, showcase your products, and network effectively. Keep all original bills and receipts for rent, travel, and freight.
5. Submit Your Claim: After the event concludes, you must submit your claim for reimbursement online within 30 days. This will involve filling out the prescribed forms and uploading scanned copies of all original invoices, receipts, your Udyam Registration, and photographs of your stall at the event.

3.2 The Virtual Frontier: Virtual and Ministry-Organized Fairs

The scheme also recognizes the power of digital platforms.

Virtual Trade Fairs: These are online exhibitions where you can set up a digital stall, display your products through catalogues and videos, and interact with buyers via chat and video calls. The PMS scheme provides funding to organizations to host such fairs, with an upper cap of ₹16.45 lakh per event. This makes it possible for MSEs to participate in large-scale events from the comfort of their office, saving on travel and logistics costs. This is a rapidly growing area and is expected to be a major focus in 2025-26.

Ministry-Organized MSME Pavilions: Often, the Ministry of MSME itself organizes or participates in major national and international trade fairs, creating a dedicated “MSME India” pavilion. The advantage here is that participating MSEs benefit from the larger branding, greater footfall, and credibility associated with the Ministry. The scale of assistance for MSEs participating in these pavilions is the same as for individual participation.

3.3 Unlocking a Giant Customer: Vendor Development Programs (VDPs)

Did you know that the Government of India is the single largest buyer in the country? The Public Procurement Policy for MSEs Order, 2012 mandates that every Central Ministry, Department, and Public Sector Undertaking (PSU) must procure at least 25% of their total annual purchases from MSEs.

This is a colossal market, but many MSEs don’t know how to access it. This is where Vendor Development Programs (VDPs) come in.

What is a VDP? A VDP is an event designed to connect MSEs directly with large buyers, especially Central Public Sector Enterprises (CPSEs) like BHEL, ONGC, and NTPC.

The PMS scheme funds these 2-day programs, with up to ₹5.0 lakh sanctioned per event.

What happens at a VDP?

• Training on GeM: You receive detailed training on how to register and operate on the Government e-Marketplace (GeM) portal, the national public procurement platform. By 2025, being proficient on GeM will be an essential skill for any MSME wanting to sell to the government.
• Understanding Procurement Processes: CPSE officials explain their specific procurement needs, quality standards, and tender processes.
• Exhibition and Networking: You get a chance to exhibit your products and have one-on-one interactions with procurement managers from various CPSEs.

Participating in a VDP can be the first step to securing large, consistent orders from the most reliable buyer in the country.

Pillar 2 – Capacity Building: Forging a Stronger, Smarter MSME

Beyond just providing market access, the PMS scheme focuses on strengthening the internal capabilities of an MSE, making it more competitive and resilient for the future.

4.1 The Silent Salesman: Adoption of Modern Packaging Techniques

Imagine two bottles of honey on a supermarket shelf. One is in a generic plastic bottle with a simple paper label. The other is in a uniquely shaped glass jar, with an elegant, well-designed label and a tamper-proof seal. Which one are you more likely to pick up and trust?

Packaging is your product’s first introduction to the customer. It is a silent salesman that communicates quality, safety, and brand value.

The PMS Approach: The scheme understands that individual MSEs may not have the resources to hire expensive design firms. Therefore, it uses a cluster-based approach. It identifies clusters of MSEs making similar products (e.g., a handicraft cluster, a food processing cluster) and provides comprehensive packaging solutions for the entire cluster.

Financial and Expert Support:

• Funding: The scheme provides a sanction of up to ₹15 lakh per cluster for packaging intervention projects.
• Expertise: The Ministry collaborates with premier institutions like the Indian Institute of Packaging (IIP), National Institute of Design (NID), and National Institute of Fashion Technology (NIFT). These expert organizations provide consultancy services to the clusters, helping them develop better and more cost-effective packaging.

The Future of Packaging (2025-26): The focus is shifting rapidly towards:

• Sustainability: Using eco-friendly, recyclable, and biodegradable materials.
• Smart Packaging: Incorporating QR codes that can link customers to your website, share product stories, or verify authenticity.
• Logistics-Friendly Design: Creating packaging that is durable, lightweight, and optimized for e-commerce shipping.

4.2 Scan, Sell, Succeed: Adoption of Bar Codes

That familiar pattern of black and white stripes on every product you buy is a bar code. It’s a product’s unique digital fingerprint, essential for modern retail.

Why do you need a bar code?

• Retail Store Sales: No major supermarket or organized retail chain will stock a product without a bar code.
• Inventory Management: It allows you and your distributors to track stock levels accurately.
• E-commerce: It is mandatory for listing products on major e-commerce platforms like Amazon and Flipkart.
• Global Trade: It is a universal standard required for exports.

The PMS Subsidy for Bar Codes

Getting a bar code involves a one-time registration fee and an annual renewal fee paid to GS1 India, the authorized body in the country. The PMS scheme makes this affordable for Micro Enterprises.

How to Get Your Bar Code Subsidy: The process involves applying to your regional MSME-DI with the application form (Annexure-A in the official guidelines), along with a copy of your Udyam Registration, the receipt from GS1 India, and other specified legal documents like an affidavit.

4.3 Your Digital Showroom: Adoption of the e-Commerce Platform

In 2025-26, if your business is not online, it is almost invisible to a large section of customers. The PMS scheme actively encourages Micro Enterprises to embrace e-commerce.

Focus on NSIC’s MSME Global Mart

While the skills are transferable to any platform, the scheme provides specific financial assistance for Micro Enterprises to onboard onto the “MSME Global Mart”, an e-commerce portal operated by the National Small Industries Corporation (NSIC).

Financial Assistance for E-commerce Adoption:

The scheme provides financial assistance to cover the costs associated with creating a professional online presence.

This support helps micro-entrepreneurs overcome the initial financial and technical hurdles of taking their business online, opening up a nationwide, and even worldwide, customer base.

4.4 Knowledge is Power: National Workshops & Seminars

The business world is constantly changing. To stay ahead, you need to keep learning. The PMS scheme funds national-level workshops and seminars on a variety of crucial topics:

• Export-Import (EXIM) Policy and Procedures
• Public Procurement Policy and GeM Portal
• Digital Marketing and E-commerce Strategies
• Product Design and Packaging Innovations
• Intellectual Property Rights (IPR)

The scheme provides up to ₹5.0 lakh per event, which allows government and private organizations with expertise to conduct these programs across the country, making knowledge accessible to thousands of MSMEs. Keep an eye on the websites of the Ministry of MSME and your local MSME-DI for announcements about upcoming workshops in your area.

Pillar 3 – Nurturing Heritage: Development of Retail Outlets for GI Products

India has a rich heritage of unique products that are tied to a specific geographical region. This uniqueness is protected by a Geographical Indication (GI) tag. Think of Darjeeling Tea, Kanchipuram Silk Sarees, Kolhapuri Chappals, or Bikaneri Bhujia. The GI tag is a mark of authenticity and quality.

The PMS scheme has a special component to promote these national treasures.

The Vision: To create modern, well-designed retail outlets exclusively for selling authentic GI-tagged products. This helps in two ways:

1. It gives a premium platform to the artisans and producers of these products.
2. It assures customers that they are buying the genuine article.

Infrastructure Support for GI Outlets

The scheme provides substantial financial support to retailers for setting up these dedicated outlets.

This funding is intended for infrastructure development, including proper interior design, display cases, computer systems, and billing counters for an outlet of around 500 sq. ft. This component is a direct boost to the ‘Vocal for Local’ and ‘Make in India’ spirit, helping preserve and promote India’s unique cultural and artisanal heritage.

The Process: Navigating the PMS Scheme Application in 2025-26

Understanding the scheme is one thing; successfully applying for it is another. The process is designed to be transparent and is increasingly moving towards a completely digital interface.

The Digital-First Approach

For nearly all components of the PMS scheme, applications and claims are to be submitted online through the designated MSME portals. This reduces paperwork, increases transparency, and speeds up the process. It is crucial to have all your documents (Udyam Registration, GST certificate, bank details, etc.) scanned and ready.

The General Application Flow

Here’s a simplified view of how a proposal moves through the system, for instance, for trade fair participation:

Step 1: Application by MSME The individual MSE submits its application online to participate in an approved event.

Step 2: Submission by Implementing Agency The Implementing Agency (like an MSME-DI or an industry association) collects applications from multiple MSEs for an event and submits a consolidated proposal to the Office of the DC (MSME). This proposal is submitted online, preferably 45 days before the event.

Step 3: Scrutiny and Approval The proposal is scrutinized by the Programme Division at the Office of DC (MSME). Preference is given to:

• First-time participants.
• Units from remote locations, especially Aspirational Districts.
• Enterprises owned by SC/ST, Women, and Persons with Disabilities (PH).

Step 4: Final Sanction by Empowered Committee The proposal is then placed before an Empowered Committee, headed by a senior official (AS&DC, MSME). This committee is the final authority for approving proposals and sanctioning the funds.

Key Tips for a Successful Application:

• Be Proactive: Start the process well in advance. Don’t wait until the last minute.
• Documentation is Key: Keep your Udyam Registration, GST, and bank details updated. Maintain meticulous records and original copies of all bills and receipts for reimbursement claims.
• Stay Informed: Regularly check the websites of the Ministry of MSME and NSIC for scheme updates and lists of approved events.
• Highlight Your Priority Status: If you belong to one of the priority categories (Woman entrepreneur, SC/ST, etc.), make sure it is clearly mentioned and supported by documents.

Conclusion: The PMS Scheme as a Catalyst for an Atmanirbhar Bharat

The Procurement and Marketing Support (PMS) Scheme is far more than just a collection of subsidies. In the context of 2025-26, it should be viewed as a strategic partnership between the Government of India and its most vital economic players the MSMEs.

It is a well-thought-out framework that addresses the most persistent challenges that hinder the growth of small businesses. It doesn’t just give them a fish; it teaches them how to fish in the vast oceans of national and international markets. It provides the tools, the knowledge, and the confidence for a small-town entrepreneur to dream big and compete on a global stage.

From helping you exhibit your products at a bustling trade fair in Delhi to funding your e-commerce journey, from subsidizing the bar code that gets your product into a modern retail store to helping you design packaging that wows customers, the PMS scheme is a comprehensive support system.

For India to achieve its goal of becoming a self-reliant, manufacturing powerhouse, its MSMEs must be strong, innovative, and market-savvy. The PMS scheme is a critical enabler in this journey. The call to action for every MSME owner is clear: understand this scheme, use it to its full potential, and unlock the next chapter of growth for your enterprise. Your success is integral to the story of a rising India.

Frequently Asked Questions (FAQ) : PMS MSMEs