Context: Recently, the Ministry of Micro, Small, and Medium Enterprises (MSME) has launched the MSME Trade Enablement and Marketing (TEAM) Initiative under the Raising and Accelerating MSME Productivity (RAMP) Programme supported by the World Bank.

About TEAM Initiative

• Objective: To empower MSMEs by improving access to digital commerce through Open Network for Digital Commerce (ONDC) expanding their market reach, and reducing business costs.

• Implementation Period: FY 2024-2025 to FY 2026-2027 (Three years).

• Budget Allocation: Rs 277.35 crore.

• Target Beneficiaries: 5 lakh MSMEs, with 50% participation from women-owned MSEs.

• Implementing Agency: National Small Industries Corporation (NSIC).

• Eligibility: Micro and small enterprises (MSEs) with valid Udyam Registration in the manufacturing or service sector. Medium enterprises are largely ineligible for benefits.

Key Features of TEAM Initiative

• Leverages Digital Public Infrastructure through ONDC to support micro and small enterprises.

• Provides MSMEs with digital storefronts, payment solutions, and logistics support to facilitate online trade.

• It will conduct over 150 workshops in Tier 2 and Tier 3 cities, focusing on MSME clusters, especially women-led and SC/ST-led businesses.

• Offers a dedicated portal for businesses to register for workshops, access financial assistance, and utilize tools for digital catalog creation.

• Ensures interoperability across digital platforms, making it easier for MSMEs to participate in e-commerce.

Significance of TEAM Initiative

• Boosts Digital Inclusion: Encourages small businesses, particularly women and marginalized groups, to adopt digital commerce.

• Expands Market Reach: Helps MSMEs overcome logistical and operational barriers, increasing their online presence and competitiveness.

• Reduces Costs: Lowers transaction and marketing costs by integrating MSMEs into a unified digital ecosystem.

• Enhances MSME Growth: Complements existing government schemes like PM Vishwakarma and the Digital MSME Scheme, contributing to the overall digital transformation of India’s MSME sector.

• Creates a Level Playing Field: Helps small businesses scale and compete with larger enterprises in the digital marketplace.

About RAMP

• Introduction: The Raising and Accelerating MSME Performance (RAMP) scheme is a World Bank-assisted Central Sector Scheme aimed at strengthening MSMEs through Covid-19 resilience and recovery interventions under the Ministry of MSME (MoMSME).

• Objectives: It focuses on improving market access, credit availability, institutional governance, Centre-State collaboration, and addressing delayed payments while promoting green initiatives in the MSME sector.

• Key Components: Strategic Investment Plans (SIPs) will be developed for all States/UTs, identifying MSME constraints, setting milestones, and prioritizing sectors like renewable energy, rural businesses, retail trade, and women enterprises.

• Funding: The scheme has a total outlay of Rs 6,062.45 crore, with Rs 3,750 crore from a World Bank loan and Rs 2,312.45 crore from India.

• Implementation: Funds are allocated based on Disbursement Linked Indicators (DLIs), including MSME reform, technology upgradation, credit enhancement, and delayed payment reduction.

• Beneficiaries: MSMEs will benefit through capacity building, skill development, digitization, quality improvement, and enhanced market outreach, making them more competitive and resilient.

About Open Network Digital Commerce (ONDC)

• Open Network Digital Commerce (ONDC) is an interoperable network based on the BeckN protocol that anyone can piggyback on. 

• The ONDC entity, a not-for-profit company incorporated under Section 8 of the Companies Act 2013, manages and operates the ONDC Network.

• Role:

• Building and maintaining the underlying infrastructure (common registries and protocols) 

• Defining the rules of engagement and code of conduct for the Network Participants through the ONDC Network Policy and the ONDC Network Participant Agreement.

Features of ONDC

• Seamless operations: It seeks to break down silos in digital commerce by enabling platforms of varying configurations (big or small) to connect and operate seamlessly on it.

• Network Participants: It comprises different entities called Network Participants, including Buyer Applications, Seller Applications, and Gateways that perform the search and discovery function

• Open ­network model: The government wants to change the fundamental structure of the e-­commerce market from the current platform­-centric model to an open ­network model.