RAMP Programme (Raising and Accelerating MSME Performance): What It Is and What MSMEs Get

What is RAMP?

RAMP, or Raising and Accelerating MSME Performance, is a World Bank-assisted Central Sector Scheme of the Ministry of MSME, launched on 30 June 2022 and running from 2022-23 to 2026-27. It aims to improve access to markets and credit, strengthen institutions and governance at the Centre and states, address delayed payments, and promote greening and gender inclusion.

The program was approved by the Cabinet in March 2022 as part of the response to the Covid-era stress on MSMEs. It responds to long-running recommendations of expert committees on MSME finance and works by raising the impact of existing schemes rather than creating a single new benefit for businesses.

Outlay and Funding Structure

Two Result Areas and Six Indicators

RAMP follows the World Bank Program for Results instrument, which releases money only when agreed results are achieved. It has two result areas and six disbursement-linked indicators.

Result Area 1: strengthening institutions and governance of the MSME program, including center and state coordination and the National MSME Council.

Result Area 2: support to market access, firm capabilities, and access to finance, including improving the effectiveness of CGTMSE and the greening and gender agenda.

Sub-Schemes and Interventions Under RAMP

The Role of States: Strategic Investment Plans

RAMP promotes Centre and state collaboration by giving grants to states to prepare a Strategic Investment Plan, a roadmap for developing the MSME sector in that state. This is important for MSMEs because many of the benefits they actually feel, such as industrial parks, cluster development, and single window support, are delivered by states. States with weaker MSME presence are encouraged to formalize and grow their MSME base through the program.

Progress So Far

How far has RAMP reached?

A Ministry of MSME update reported that more than four lakh MSMEs had been impacted against a target of about 5.55 lakh and that the Ministry had claimed reimbursement of about 46 percent of the 500 million dollar World Bank assistance, which reflects results achieved against the agreed indicators.

What MSMEs Can Do With RAMP

• Check whether you are Udyam registered, since almost every RAMP-linked benefit requires it.
• If you plan a green technology upgrade, approach an empanelled lender for a loan under MSE GIFT and claim the interest subvention.
• If you invest in recycling or resource efficiency, look at the MSE SPICE capital subsidy.
• If a buyer has not paid on time, use the online dispute resolution route and Udyam Samadhaan for delayed payment claims.
• For credit without collateral, ask your lender to use CGTMSE cover, particularly if you are a woman-owned enterprise.
• Look up your state's Strategic Investment Plan and MSME policy to see which local schemes and parks are being prioritized.

Timeline: Why 2026-27 Matters

RAMP is designed to run only until the end of 2026-27, which is the current financial year. Any MSME planning to use a RAMP-linked scheme, such as a green technology loan with interest subvention, should not delay, since scheme windows and funds under the program depend on the timelines agreed with the World Bank. Confirm the current status of each sub-scheme with SIDBI or the Ministry before committing to a project.

Key Takeaways

• RAMP is a World Bank-assisted Central Sector Scheme with an outlay of Rs 6,062.45 crore, launched on 30 June 2022 and running until 2026-27.
• It does not give direct cash grants to MSMEs but strengthens schemes and systems that MSMEs use.
• Its sub-schemes include MSE GIFT, MSE SPICE, and online dispute resolution for delayed payments, alongside CGTMSE strengthening and women-focused guarantee support.
• It targets about 5.55 lakh MSMEs, with more than four lakh impacted, and results linked to World Bank funding.
• Because the program window ends in 2026-27, MSMEs planning to use its schemes should act early and confirm the current status.

FAQs

What is the RAMP program?

RAMP stands for Raising and Accelerating MSME Performance. It is a World Bank-assisted Central Sector Scheme of the Ministry of MSME, launched by the Prime Minister on 30 June 2022, that improves market access, credit, technology, and institutions for MSMEs over five years from 2022-23 to 2026-27.

What is the total outlay of RAMP?

The total outlay is Rs 6,062.45 crore, or 808 million US dollars, of which Rs 3,750 crore or 500 million dollars is a World Bank loan and the remaining Rs 2,312.45 crore is funded by the Government of India.

Does RAMP give money directly to MSMEs?

No. RAMP is mainly an institutional capacity and impact enhancement programme. It strengthens and expands existing MSME schemes and the systems around them, and MSMEs benefit through those schemes rather than through a direct RAMP cash grant.

Which schemes have been launched under RAMP?

Sub schemes under RAMP include the MSE Green Investment and Financing for Transformation Scheme, or MSE GIFT, the MSE Scheme for Promotion and Investment in Circular Economy, or MSE SPICE, and the MSE Scheme on Online Dispute Resolution for delayed payments, alongside measures to scale up credit guarantees for women owned enterprises.

How many MSMEs is RAMP meant to benefit?

RAMP targets about 5.55 lakh MSMEs during its five year period. By an official update in 2024, more than four lakh MSMEs had been impacted and the Ministry had claimed reimbursement of about 46 percent of the World Bank assistance, since funds are released against results.

How is RAMP funded by the World Bank?

RAMP follows the World Bank Program for Results approach, where money is released when the government achieves agreed Disbursement Linked Indicators, six in total, across two result areas: strengthening institutions and governance of MSME programs and support for market access, firm capabilities and access to finance.

Conclusion

If you want to use RAMP-linked schemes such as MSE GIFT, MSE SPICE or CGTMSE backed credit before the program window closes, Growthora Advisory can help you pick the right one and prepare the application. Book a free consultation with our funding team today.